Aristata Capital was founded in 2018 and is the first litigation fund dedicated to driving positive social and environmental change with an attractive financial return. Aristata has two key objectives:
1. Funding high quality litigation in order to achieve measurable social and environmental impact
2. Harnessing the power of private capital to drive systemic change at scale
Aristata invests in a diversified portfolio of litigation cases across a range of impact sectors – including environment, climate change, human rights, justice reform, access to justice, foreign aid and equality - where law can be used as a potent tool for social and environmental change.
Convergence of Impact Investing and Litigation Funding
Aristata's approach is to deliver a blended return of impact and attractive commercial returns
Impact Investing Sector: a Growing Demand for Impact and Returns
Investment with a dual impact and commercial objective is reaching meaningful levels globally: impact investors collectively manage US$715bn of assets (GIIN Annual Impact Investor Survey 2020).
Litigation Funding Sector: a Growing Asset Class Generating Attractive Returns
Litigation Funding is the financing of a commercial litigation claim on behalf of a claimant for a share of the proceeds if the case is successfully resolved.
The funder enters into a litigation funding agreement with the claimant who retains control of the claim (funder can influence). As the case progresses, the funder pays the claimant’s costs (lawyers, counsel, experts, other case related costs).
Litigation funding is best understood and practiced in the major common law jurisdictions around the world (UK, US, Australia, New Zealand, Canada…), where the average litigation claim is c. 2.5 years.
The sector is attracting large amounts of capital (US$4bn in last three years).
Aristata’s Impact Model fills a Significant Gap in the Market
The investment strategy draws on the powerful tool of litigation funding, one of the most exciting asset classes in the market, to unlock impact cases.
Aristata is bridging the gap between public interest litigation and commercial cases targeted by traditional litigation funds focused solely on financial return.
Aristata’s dual objective model monetises high quality case investment opportunities where measurable social and environmental impact value is generated.
First opportunity to invest in commercial litigation to effect positive social and environmental change
Litigation Funding is a fast growing asset class, providing uncorrelated returns
Strong team combining Impact Investment, Litigation and Funding experience, supported by Capricorn Investment Group and its extensive network
Performance will be assessed on a blend of measurable impact and financial returns
Aristata is backed by its anchor investor: Capricorn Investment Group
One of the largest mission-aligned investment firms in the world, managing $6bn in multi-asset class portfolios for institutional investors, foundations & endowments and family offices.
Capricorn’s mission is to pursue extraordinary investment results by leveraging market forces in order to scale solutions to global problems.
Capricorn was formed in 2004 with the anchor investment of Jeff Skoll, co-founder of eBay, Participant Media and the Skoll Foundation.
Capricorn has been a leading investor in several iconic businesses and asset management companies such as Tesla, Planet, SpaceX, Vision Ridge, Inherent Capital and Osmosis Capital.
Capricorn is part of a broader network acting for justice. The Skoll Foundation supports a global network of social entrepreneurs and activists. Participant Media is the world’s leading producer of films tackling environmental and social issues (An Inconvenient Truth, Spotlight, Roma, Green Book, Dark Waters, John Lewis: Good Trouble)
Capricorn Investment Group will help Aristata scale its investments and impact by providing…
• Its support in business development and capital raising
• Its operational and investment expertise to generate the best risk-adjusted returns
• Its knowledge of the impact world through its developed network of NGOs and impact investors
• Support from the Bridgespan Group to assist in the development of its impact assessment methodology