Legalist, Inc., a Delaware corporation, was founded in March 2016. Eva Shang and Christian
Haigh are its principal owners. Ms. Shang serves as Legalist’s Chief Executive Officer and Mr.
Haigh is its Chief Investment Officer.
Legalist provides investment advisory services to private investment funds that are offered to
investors on a private placement basis, referred to collectively as the “Funds.” Legalist may form
additional Funds and may manage separate accounts in the future.
Certain Legalist-affiliated entities serve as the Funds’ general partners (the “GPs”). Legalist
registered as an investment adviser with the SEC in December 2019.
Legalist invests the Funds’ assets in three principal strategies: Litigation Finance,
Bankruptcy/Debtor-in-Possession (or “DIP”) Finance, and Government Receivables Finance.
For its Litigation Finance strategy, Legalist advances funds on a nonrecourse basis to pay legal
fees, costs, and working capital for plaintiffs and/or counsel in commercial litigations and other
proceedings (“Litigations”) in exchange for a portion of any recovery if the Litigations are
successful. Advanced funds are used for (among other things) attorneys’ fees, discovery costs, and
advances on judgment/settlement payments.
For its DIP Finance strategy, Legalist provides capital to companies that have filed for relief under
chapter 11 of title 11 of the U.S. Code (the “Bankruptcy Code”). This capital is used to fund
administrative
expenses (including retaining legal, financial, and other advisors) and other costs
of reorganizing or liquidating under the Bankruptcy Code. DIP Finance investments are typically
secured by all-asset liens and repayable upon confirmation of a debtor’s bankruptcy plan.
For its Government Receivables Finance strategy, Legalist advances funds to local, state, and
federal government contractors, with repayments secured by the contractors’ right to payment
(“Government Receivables”) from various government agencies, among other collateral.
Advanced funds are used for (among other things) working capital and other costs of performance,
which in turn generate Government Receivables that fund repayments. Government Receivables
Finance investments are generally structured as revolving facilities with terms of one year or less,
subject to renewal.
The investment objectives, strategies, terms, conditions and restrictions applicable to the Funds
are described in their respective Limited Partnership Agreement or other relevant governing
documents (collectively, “Governing Documents”). This Brochure provides only summaries of
the subjects of the Items below. Investors should refer to the relevant Governing Documents for
more detailed information regarding matters described in this Brochure.
Legalist does not participate in any wrap-fee program.
As of March 31, 2023, Legalist had approximately $766.5 million in assets managed on a
discretionary basis.