{"id":51053,"date":"2022-11-28T03:12:13","date_gmt":"2022-11-28T03:12:13","guid":{"rendered":"https:\/\/adamfayed.com\/?p=51053"},"modified":"2026-03-23T04:36:12","modified_gmt":"2026-03-23T04:36:12","slug":"woodville-litigation-funding-investment-review","status":"publish","type":"post","link":"https:\/\/adamfayed.com\/es\/review-articles\/woodville-litigation-funding-investment-review\/","title":{"rendered":"Woodville Litigation Funding Investment Review &#8211; Do Superior Alternatives Exist?"},"content":{"rendered":"<p>Woodville Litigation Funding investment review &#8211; that will be the topic of today&#8217;s article.<\/p>\n\n\n\n<p>During this article I will speak about the positives and negatives associated with this investment and why, for most investors, superior risk-adjusted options exist.<\/p>\n\n\n\n<p>This is particularly important given the recent news that Woodville has delayed certain investor repayments, affecting both bondholders and loan note investors.<\/p>\n\n\n\n<p>If you have been proposed Woodville Litigation Funding and want a second opinion, you can email me (advice@adamfayed.com) or <a href=\"https:\/\/adamfayed.com\/es\/contact\/\">p\u00f3ngase en contacto conmigo aqu\u00ed.<\/a> <\/p>\n\n\n\n<p>Woodville do not focus on UK-resident investors, so this <a class=\"wpil_keyword_link\" href=\"https:\/\/adamfayed.com\/es\/category\/review-articles\/\" title=\"revise\" data-wpil-keyword-link=\"linked\" data-wpil-monitor-id=\"306\">revise<\/a> should be considered by people living outside the UK only. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Introducci\u00f3n<\/strong> - <strong>who are Woodville and what are the basics associated with this investment?<\/strong><\/h2>\n\n\n\n<p>Woodviile are a UK-based company who specialize in litigation funding.  The main focus is in consumer finance and personal injury.<\/p>\n\n\n\n<p>The company makes a return of the proceeds if a successful claim is made by somebody who qualifies for one of the loans.<\/p>\n\n\n\n<p>Woodville offer a one, two and three year bonds. The returns are 10%, 11% and 12% respectively.<\/p>\n\n\n\n<p>The investment is available in Euros, USD and British Pounds.<\/p>\n\n\n\n<p>The investment minimums are $10,000, with most investors doing much higher sums.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Where is the investment sold?<\/strong><\/h2>\n\n\n\n<p>The investment is sold globally, but especially in expat hotspots such as the UAE, Saudi Arabia, Qatar and beyond.<\/p>\n\n\n\n<p>Often it is part of a wider portfolio, sold on platforms such as <a href=\"https:\/\/adamfayed.com\/es\/custodian-life-review-2022-should-you-buy\/\">Custodio Vida<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How does Woodville manage the risk?<\/strong><\/h2>\n\n\n\n<p>Woodville selects cases based on three criteria according to materials they have produced<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>They enter at a late stage of the process when liability is established <\/li>\n\n\n\n<li>The lending to law firms is done after ATE insurance is put in place <\/li>\n\n\n\n<li>They are given assignment rights on each case.<\/li>\n<\/ul>\n\n\n\n<p>With that being said, it has to be remembered that many other litigation funds have gone bankrupt. This doesn&#8217;t mean that the same thing will happen to Woodville. <\/p>\n\n\n\n<p>It merely means that the above considerations don&#8217;t negate the fact that this is a high-risk, alternative asset, which should only be considered by certified high-net-worth individuals and sophisticated investors.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What are the positives associated with this investment?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Whilst positives have historically existed, including no delayed payments until recently, right now it is better to wait until the existing issue is resolved before focusing on this.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>\u00bfCu\u00e1les son los aspectos negativos?<\/strong><\/h2>\n\n\n\n<p>The main negatives are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You are locked in for 1-3 years.<\/li>\n\n\n\n<li>If you don\u2019t go for the insured option, you are taking a much bigger risk than through A-rated corporate and government bonds. Even with the insured option, the insurance doesn&#8217;t cover everything.<\/li>\n\n\n\n<li>With an investment of this kind, there is always a risk of completely losing your capital. It has happened on many occasions with similar investments<\/li>\n\n\n\n<li>There are also many new options available in the expat and high-net-worth market such as A-rated banks offering close to 9% on certain products that we have offered to clients. Given that Woodville&#8217;s return is only 2%-3% per year higher, you have to question if the extra risk is worth it. To understand more about those alternatives you can <a href=\"http:\/\/adamfayed.com\/es\/contact\/\">p\u00f3ngase en contacto conmigo aqu\u00ed.<\/a><\/li>\n\n\n\n<li>You are reliant on your investment advisor to construct a good, well-rounded portfolio, which meets your needs. This is the case with any investment though, and can be a positive or negative depending on who is representing you.<\/li>\n\n\n\n<li>Woodville is completely focused on the UK-market (meaning they are focused on lending to UK law firms not UK-based investors).  This is good in some ways. It is a tried-and-tested market, and there isn&#8217;t the complexity of multi-jurisdictional lawsuits.  It is also a stable market, because some people always take the litigation route.  In fact, people are arguably more likely to seek litigation during troubling economic times. It does mean you are reliant on one economy though.<\/li>\n\n\n\n<li>Even if you want to take a bigger risk with alternative assets, there are other options available that pay higher returns for similar levels of risk.  That includes some firms that have been in the loan note market for far longer than Woodville.<\/li>\n\n\n\n<li>Ultimately, private investments (private equity and private debt) are never as transparent as listed options available in the stock market. It is, therefore, almost impossible to fully assess the risk.<\/li>\n\n\n\n<li>After receiving private and confidential information in October 2023, my view become a little bit more negative about this investment.<\/li>\n\n\n\n<li>The FCAs recent decision on PCP might add some extra risks for models like this, but this isn&#8217;t yet fully known. <\/li>\n\n\n\n<li>What we do know is that Woodville have asked for a vote on delaying the repayment of one of their bonds until 2026. The delay is only for a few months, and investors are expected to be compensated with higher returns. However, Woodville are also now late on certain loan note payments, and we have heard reports that some coupon payments may have been delayed as well. This highlights the liquidity pressures within the structure and illustrates some of the risks associated with their model, as delays can affect multiple parts of the capital structure.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<p>So, whilst positives exist, the negatives outweigh them for most investors. This is especially the case now that fixed-income returns have gone up due to higher interest rates.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How does the insurance option work?<\/strong><\/h2>\n\n\n\n<p>On investment amounts above a certain threshold, it is possible to add an insurance option, which we have done on many occasions.<\/p>\n\n\n\n<p>If after two weeks of payment being due, Woodvile haven&#8217;t paid, the investor can first speak to Woodville.   <\/p>\n\n\n\n<p>If that doesn&#8217;t work, it is possible to speak to the insurer directly to make a claim, within 28 days.<\/p>\n\n\n\n<p>However, it is a mistake to think that insured options are risk-free. There have been other insured options that have collapsed.  Like all insurance, the terms and conditions don&#8217;t cover everything.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What are the challenging going forward for firms like this?<\/strong><\/h2>\n\n\n\n<p>The  more difficult economic conditions in 2023 and possibly 2024 could present opportunities and threats for firms like Woodville. <\/p>\n\n\n\n<p>It could be argued that more difficult economic times will result in more people taking litigation action against others.  <\/p>\n\n\n\n<p>What is more, Woodville aren&#8217;t reliant on getting money from the banks, so higher interest rates shouldn&#8217;t affect the model.<\/p>\n\n\n\n<p>With that being said, more difficult economic times always presents threats to any business model.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Conclusi\u00f3n<\/strong><\/h2>\n\n\n\n<p>There are always risks with investments like this.<\/p>\n\n\n\n<p>Given the massive risks but also opportunities in alternative assets, it is important to seek a second opinion, especially if you are not a financial expert.<\/p>\n\n\n\n<p>If you are looking for a second opinion you can contact me directly.<\/p>\n\n\n\n<p><strong>\u00bfLe duele la indecisi\u00f3n financiera? \u00bfQuiere invertir con Adam?<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"604\" src=\"https:\/\/adamfayed.com\/wp-content\/uploads\/2022\/04\/smile-beige-jacket-4-1024x604-1.png\" alt=\"\" class=\"wp-image-41171\" srcset=\"https:\/\/adamfayed.com\/wp-content\/uploads\/2022\/04\/smile-beige-jacket-4-1024x604-1.png 1024w, https:\/\/adamfayed.com\/wp-content\/uploads\/2022\/04\/smile-beige-jacket-4-1024x604-1-300x177.png 300w, https:\/\/adamfayed.com\/wp-content\/uploads\/2022\/04\/smile-beige-jacket-4-1024x604-1-768x453.png 768w, https:\/\/adamfayed.com\/wp-content\/uploads\/2022\/04\/smile-beige-jacket-4-1024x604-1-81x48.png 81w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/adamfayed.com\/es\/become-adams-client\/\">Convi\u00e9rtase en mi cliente<\/a><\/div>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/adamfayed.com\/es\/good-match-quiz\/\" target=\"_blank\" rel=\"noreferrer noopener\">Realice el cuestionario de elegibilidad de clientes<\/a><\/div>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/adamfayed.com\/es\/contact\/\" target=\"_blank\" rel=\"noreferrer noopener\">P\u00f3ngase en contacto con<\/a><\/div>\n<\/div>\n\n\n\n<p><strong>Adam es un autor reconocido internacionalmente en temas financieros, con m\u00e1s de 830 millones de respuestas en Quora, un libro muy vendido en Amazon y colaborador de Forbes.<\/strong><\/p>\n\n\n\n<p><strong>Lecturas complementarias <\/strong><\/p>\n\n\n\n<p>On the article below, taken directly from my Quora.com answers, I speak about the FTX scandal and collapse, alongside numerous other topics.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-adam-fayed wp-block-embed-adam-fayed\"><div class=\"wp-block-embed__wrapper\">\nhttps:\/\/adamfayed.com\/why-did-ftx-collapse-what-does-ftxs-collapse-reveal-about-cryptocurrencies\n<\/div><\/figure>","protected":false},"excerpt":{"rendered":"<p>Woodville Litigation Funding investment review<\/p>","protected":false},"author":1,"featured_media":64369,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_10166176115445471_100883565069113":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[11534],"tags":[],"class_list":["post-51053","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-review-articles"],"_links":{"self":[{"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/posts\/51053","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/comments?post=51053"}],"version-history":[{"count":2,"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/posts\/51053\/revisions"}],"predecessor-version":[{"id":278019,"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/posts\/51053\/revisions\/278019"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/media\/64369"}],"wp:attachment":[{"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/media?parent=51053"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/categories?post=51053"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/tags?post=51053"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}