Financing legal proceedings can be a profitable business. Now, for the first time in Switzerland, a provider of legal finance solutions has received a license as an administrator of collective investment programs.
Swiss litigation finance company Nivalion received its license as an administrator of collective assets from Finma at the beginning of June, allowing it to manage them, while providing risk management for investments and offering shares in capital investments for litigation financing to professional and institutional clients in Switzerland.
With the arrangement, Nivalion assumes the cost risk in litigation, monetization of claims, and the financing of litigation portfolios.
Further Expansion
The license makes it the first company to receive such authorization, which CEO Marcel Wegmueller called an important milestone for further developing the company, according to a statement.
It also gives Nivalion access to institutional investors, who are only allowed to invest with regulated managers due to their regulatory obligations, leaving it unrivaled in continental Europe as the only asset manager with the seal of approval from a financial market regulator.
The Zug-based company is represented in neighboring German-speaking countries with offices in Frankfurt, Munich, and Vienna. with a staff of about 25 employees. There are plans to obtain further fund distribution licenses in Germany and other jurisdictions.
