We adhere to a rigorous investment process, which we believe enables us to identify and select only the most meritorious claims for investment.

Longford Capital’s Investment Process
  1. Longford Capital works with claim owners, law firms, and other parties to identify potential investment opportunities.

  2. Longford Capital’s investment team underwrites potential investments falling within the criteria applicable to the specific fund, considering multiple factors to determine if the investment meets the overall objectives of the portfolio. For opportunities identified for further consideration, Longford Capital’s investment team researches the facts and applicable laws of the case. Claim owners may be asked to provide additional documents and information, including detailed background information, publicly available court filings, and select financial documents. A case budget and project management plan are prepared and evaluated.

  3. Longford Capital prepares and negotiates a letter of intent including economic terms.

  4. The Investment Committee reviews the due diligence completed to date including potential return and potential risks of loss. The Investment Committee determines if the proposed investment is suitable for additional due diligence under a letter of intent. If the Investment Committee concludes favorably, the letter of intent is signed.

  5. Longford Capital retains independent legal counsel and / or other experts to review (i) the evaluation work completed to date, (ii) the legal merits of the case or cases underlying the potential investment and (iii) any other information deemed relevant (the Independent Legal Review or “ILR”).

  6. Longford Capital prepares and negotiates a customized funding agreement for the proposed investment.

  7. Investment Committee reviews (i) the ILR, (ii) the draft funding agreement and (iii) any other evaluation work completed since the initial Investment Committee meeting. Investment Committee determines whether the proposed investment is a suitable portfolio investment. If Investment Committee approves the proposed investment, the funding agreement is finalized.

  8. Longford Capital begins to fund the investment. Longford Capital monitors the investment and remains in communication with, and will have the right to receive regular reports from, the claim owner and its legal counsel. Underwriting and evaluation continues periodically throughout the life of the investment, and the decision may be made by the Investment Committee to increase or discontinue funding.

*The chart and description above area simplified, stylized representation of Longford Capital's typical investment process. In actual practice, steps may be reorganized, modified, omitted, or substituted to meet operational or commercial demands.

© 2019 Longford Capital Management, LP. All Rights Reserved.