Restricted — Authorised Institutions Only
100% per annum · paid quarterly · 20:1 loan to claim value
Tier 1 & Tier 2 Basel III Regulated Deposit-Taking Banks Only
LITDAQ introduced by EPC Ventures — For UK Tier 1 & 2 bank treasury teams
The Warranted Loan Note — Reserve
The Reserve product pays the same warranted loan note return as every product — an assured 100% per annum, paid quarterly, decoupled from claim outcomes, supporting claim value at a 20:1 ratio. What is distinct to Reserve is the capital reserve: a Tier 1 / Tier 2 deposit-taking bank commits the reserve capital to build the asset-backed securities — the ABSs that supply the ABS Factory — and therefore earns the Reserve Banking lending-book enhancement, a "top-down" revenue stream, on top of the assured coupon. A bank that wants the return alone, without committing the reserve capital, takes the Institutional product.
The Reserve product is not a litigation fund. It is the warranted loan note — a bilateral loan to a regulated law firm carrying an assured 100% per annum, paid quarterly, decoupled from claim outcomes, with principal returned at term, supporting claim value at a 20:1 ratio. The return is identical to Institutional and Capital. What is distinct to Reserve is that a Tier 1 / Tier 2 deposit-taking bank commits the reserve capital to build the asset-backed securities — the ABSs that supply the ABS Factory — and so earns the Reserve Banking lending-book enhancement, a top-down revenue stream, on top of the assured coupon. A bank that does not wish to commit the reserve capital takes the Institutional product instead. The law firm is the sole obligor on the return and, for the small residual that does not settle, assumes the court costs and repays the loan capital.
The instrument and the return are the same warranted loan note offered across all three products. What is distinct to Reserve is the capital reserve: a Basel III deposit-taking bank commits the reserve capital to build the asset-backed securities, and so earns the Reserve Banking lending-book enhancement — a top-down revenue stream — alongside the assured coupon, from a single capital commitment.
Assured return: 100% per annum on the capital, paid quarterly — the same across all three products. Reserve is the product that commits the reserve capital to build the ABSs, earning the Reserve Banking lending-book enhancement on top. A bank that wants the coupon alone takes the Institutional product.
The committed capital is the reserve. It is loaned to the regulated law firm at 100% per annum to finance claim processing, and is used to build the asset-backed securities the bank holds on its own balance sheet — the reserve assets that deliver the lending-book enhancement and supply the ABS Factory. The figures below are shown per £1,000,000 and scale linearly to institutional commitments.
| Component | Per £1,000,000 | Rate / Ratio | Basel III Treatment | Driver |
|---|---|---|---|---|
| Reserve capital committed | £1,000,000 | 100% committed | Loaned to the law firm and used to build the ABS the bank holds on its own balance sheet | Bilateral loan — no funds to any party other than the law firm |
| Assured interest (the coupon) | £250,000 / quarter | 100% p.a. | Contractual loan interest payable by the law firm; decoupled from claim outcomes | £1,000,000 per year, principal returned at term |
| Claim value supported | ≈ £20,000,000 | 20:1 | Underlying claim pool behind the ABS · 10,000 claim slots at £100 | Per-claim processing loan, extends linearly |
| Court costs on the residual | Borne by the law firm | — | The law firm is sole obligor and provides the court funding on the residual that does not settle | Firm assumes court costs & repays loan capital |
| Reserve banking lending-book enhancement | Bank-specific | Top-down | The ABS held as a reserve asset supports a multiple of lending book; NIM on that capacity is additional revenue. Confirm against the relevant CRR provisions and the bank's own ICAAP / CRO view | The distinguishing advantage of the Reserve product |
The bank uses the loaned capital to create the asset-backed security on its own balance sheet, backed by the underlying claim pool the loan finances. The institution manages the vehicle and its treatment under its own regulatory framework (Basel III, CRR II / CRD V), which is what delivers the reserve banking advantages.
The loan itself is identical to the Institutional and Capital products: a bilateral warranted loan to a regulated law firm at 100% per annum, paid quarterly, supporting claim value at 20:1. The firm's covenant is the credit on the instrument. EPC Ventures introduces the facility and does not receive the loaned funds.
Reserve is structured to operate within Basel III, not around it. The committed reserve capital earns the assured coupon and is used to build the asset-backed securities the bank holds on its own balance sheet. As Basel III reserve assets, those ABSs support the lending-book enhancement that distinguishes the Reserve product. The points below are flags for the institution's own regulatory-capital team and should be confirmed against the relevant CRR provisions and the bank's ICAAP / CRO view.
The reserve capital does double duty: it earns the assured 100% per annum coupon as a warranted loan to the law firm, and — held as a Basel III reserve asset in the form of the ABS — it supports a multiple of lending book under fractional-reserve banking. The net interest margin on that enhanced lending capacity is the top-down revenue stream over and above the coupon. The precise treatment depends on each institution's binding constraint and internal classification of the ABS holding.
| Regulatory Metric | Treatment | Impact on Bank |
|---|---|---|
| The coupon | Assured 100% per annum on the committed capital, paid quarterly; contractual loan interest payable by the law firm, decoupled from claim outcomes. | Base return — the same across all three products |
| The ABS as a reserve asset | The committed capital builds the asset-backed security the bank holds on balance sheet, backed by the underlying claim pool at 20:1. | Reserve asset supporting the lending-book enhancement |
| Lending-book enhancement | Under fractional-reserve banking, the reserve supports a multiple of lending book within the institution's leverage framework. | Net interest margin on enhanced capacity — top-down revenue |
| Correlation / ICAAP | The return is decoupled from claim outcomes and market cycles (≈ 0.005 equity correlation), so the asset does not amplify balance-sheet stress in adverse scenarios. | A genuine Pillar 2 diversifier |
| ABS Factory supply | The ABSs built from the reserve capital supply the EPC ABS Factory; terms, administrator and custodian are determined by the institution. | Origination of balance-sheet ABS inventory |
| Confirmation required | Reserve banking, CRR and leverage treatment depend on the institution's own framework (CRR II / CRD V) and should be confirmed by its regulatory-capital team. | Flag for diligence — not a conclusion |
The facility finances two consumer-credit claim genres whose liability turns on identifiable data points rather than contested facts — so the claim does not need case-by-case technical work to advance. Each is AiGLe-graded against winning criteria before any capital is committed. The figures below show one year on a £1,000,000 pool of 10,000 concurrent claim slots, recycling at each genre's cycle velocity.
| Metric | Revolving Credit | PPI |
|---|---|---|
| Cycle length | 12 weeks | 52 weeks* |
| Cycles per year | 4.33 | 1.00 |
| Claims processed / yr | 43,333 | 10,000 |
| Law firm revenue per claim | £576 | £1,000 |
| Gross firm revenue / yr | £24.96m | £10.00m |
| Less: cost of finance (100% p.a.) | −£1.00m | −£1.00m |
| Net firm revenue : cost of finance | ≈ 24× | ≈ 9× |
* PPI cycle modelled at 52 weeks (one per year) as a conservative default; PPI revenue per claim taken as 50% of a £2,000 average damages value. Both are editable assumptions in the model and should be confirmed against actual PPI resolution data. AiGLe Scores are analytical opinions, not credit ratings. Law firm revenue figures are illustrative and depend on claim volume, cycle velocity and per-claim revenue holding at modelled levels.
The assured coupon is the entry point — the same 100% per annum, paid quarterly, that every product pays. The Reserve advantage is additive: the committed reserve capital builds the asset-backed securities the bank holds on its own balance sheet, and as Basel III reserve assets those ABSs support a multiple of lending book under fractional-reserve banking. The net interest margin on that enhanced lending capacity is the top-down revenue stream. The figures below are illustrative; the precise treatment depends on the institution's own binding constraint (CET1, leverage, NSFR or LCR) and should be confirmed by its regulatory-capital team. Indicative only — not a guaranteed revenue projection.
The return is identical either way. The choice is whether to commit the capital as a reserve and build the ABSs — which is what unlocks the Reserve Banking lending-book enhancement and supplies the ABS Factory.
The return is contractual loan interest payable by the law firm, decoupled from the success, settlement or recovery of any claim. Settlement is governed by judicial decision, FCA determination or FOS adjudication — processes with no statistical relationship to equity market cycles, credit spread movements or interest rate changes. The ≈ 0.005 equity correlation is a structural characteristic of the asset, not an observed historical figure — categorically different from alternative assets whose low observed correlation reflects cyclical divergence rather than structural independence.
For Internal Capital Adequacy Assessment Process (ICAAP) purposes under Basel III Pillar 2, an asset whose value is determined by a fixed contractual obligation rather than market inputs does not amplify balance-sheet stress in adverse scenarios — making it a genuine diversifier relevant to stress testing under PRA SS3/19 and the EBA's ICAAP guidelines.
The reserve banking, leverage and capital treatment depend on the institution's own framework under CRR II / CRD V. Banks should confirm precise regulatory-capital treatment with their internal regulatory-capital teams and PRA supervisory contacts. Flags for diligence — not conclusions.
The committed reserve capital funds claim processing at £100 per claim and supports claim value at a 20:1 ratio — a £1,000,000 loan funds 10,000 concurrent claim slots and supports approximately £20,000,000 of underlying claim value. That claim pool is the collateral base behind the asset-backed securities the bank builds and holds, and which supply the ABS Factory. Because the structure is a per-claim processing loan, the economics extend linearly: a larger commitment funds proportionally more claim slots and builds proportionally more ABS, at the same 100% per annum coupon and the same 20:1 ratio. Law firm revenue figures referenced elsewhere are illustrative and depend on claim volume, cycle velocity and per-claim revenue holding at modelled levels.
The loan finances graded, financeable claims through the settlement process — up to court. The claims are built to win, so the overwhelming majority settle before they ever reach it: a realised 98% on the closed book to date. For the small residual that does not settle, the borrowing law firm assumes the court costs and repays the loan capital.
A claim settled before filing costs the defendant less than the damages value and avoids court costs entirely. For a blue-chip lender carrying provisioned liabilities, settling below face value crystallises a known, lower number against an existing provision — and takes brand, regulatory and operational exposure off the book. Settlement is the cheaper, cleaner outcome on every measure that matters.
No court costs · cleaner accountingOnce a claim is filed, the court's fixed costs begin to apply. If the defendant fights and loses, it pays the damages plus its own defence costs, the claimant's litigation costs and the court costs — illustratively up to 300% of damages. For an indefensible claim resting on clear legal precedent, this is the expensive path to the same result.
Court costs apply once filedRealised settlement rate on the closed book to date. Investor capital finances the settlement phase, where the overwhelming majority of claims resolve.
For the small residual that does not settle, the law firm assumes the court costs and repays the loan capital. The firm carries the claim beyond court — there is no insurance premium in the structure.
The coupon is contractual loan interest payable by the law firm, paid quarterly and decoupled from how any individual claim resolves. Principal returned at term.
The committed reserve capital is loaned to the regulated law firm at an assured 100% per annum and used to build the asset-backed securities the bank holds on its own balance sheet. The loan finances claim processing at £100 per claim, supporting claim value at 20:1; the overwhelming majority of claims settle before court, and for the residual the law firm assumes the court costs and repays the loan capital. Two things come back to the bank: the assured coupon, paid quarterly with principal returned at term, and the Reserve Banking lending-book enhancement from holding the ABS as a reserve asset. The ABSs built supply the ABS Factory.
The ABS as a reserve asset. The committed capital is used to build the asset-backed security the bank holds on its own balance sheet. Its classification and treatment depend on the institution's internal framework and regulator-specific guidance.
Lending-book enhancement. Held as a reserve asset, the ABS supports a multiple of lending book under fractional-reserve banking; the net interest margin on that capacity is the top-down revenue stream. Actual contribution depends on each institution's binding constraint (CET1, leverage, NSFR or LCR).
The coupon. The assured 100% per annum is contractual loan interest payable by the law firm, paid quarterly and decoupled from claim outcomes — the same return as the Institutional and Capital products.
Capital treatment. Risk-weight and capital impact depend on the institution's own internal-ratings-based or standardised-approach assessment under CRR II / CRD V (and CRR III as it applies).
Indicative regulatory framing only — flags for diligence, not conclusions. Each subscribing institution should obtain an independent regulatory-capital and liquidity opinion before commitment. EPC Ventures and Efficiency Professor Consultancy do not provide regulatory or accounting advice.
The loan finances two consumer-credit claim genres — revolving credit and PPI — whose liability turns on identifiable data points. Every claim passes through origination, AiGLe assessment and a financeable, tradeable threshold before any capital is committed. The £100 per claim carries it from acquisition through to settlement.
Claims are sourced across two proven genres. Revolving credit recycles on a 12-week cycle (capital turns ≈ 4.3× per year); PPI is modelled conservatively on a 52-week cycle. A £1,000,000 facility funds 10,000 concurrent claim slots at £100 each, recycling at each genre's cycle velocity.
AiGLe is the grading agency for litigation claims; each claim is screened against clear precedent to meet winning criteria. AiGLe Scores are analytical opinions, not credit ratings. For PPI and revolving credit, liability is data-determined, so the claim becomes a forecastable trade rather than a bet on a single case.
Only claims that have passed origination, AiGLe assessment and the financeable, tradeable threshold are financed — claims built to meet win precedence before any capital is committed. The report assembles the determination evidence from the data points. This is the point at which capital is committed.
The capital funds the settlement process up to the point of court. Because the claims are built to win, the overwhelming majority settle before court — a realised 98% on the closed book to date. Same-character claims against the same defendant are filed together, well received by the courts and supported by expert legal opinion.
For the small residual that does not settle, the borrowing law firm assumes the court costs and repays the loan capital — the firm carries the claim beyond court. The firm's own claim revenue covers the cost of finance many times over (≈ 24× revolving credit, ≈ 9× PPI in the model), so the 100% per annum coupon is the fixed cost of capacity.
The return is decoupled from claim outcomes, so the diligence centres on the borrowing law firm's covenant and its ability to service a fixed obligation, and — for the Reserve product specifically — on the reserve banking treatment. The points below are flags for diligence, not conclusions, and should be confirmed by FCA-experienced counsel and the institution's regulatory-capital team before any capital is committed. Capital is at risk.
| Risk Factor | What It Means | Diligence Focus |
|---|---|---|
| Borrower covenant | The assured return is only as strong as the law firm's ability to pay it. The firm is the sole obligor, so the firm's covenant is the credit on the instrument. | Primary risk — credit assessment of the firm |
| Coupon fundability | A 100% per annum coupon must be serviced from the firm's claim revenue; the model shows ≈ 24× (revolving credit) and ≈ 9× (PPI) cover of the cost of finance. | Evidence outcome-independent cash flow under stress |
| Concentration | Two named borrowers — Peter Maughan & Co Limited (SRA) and E-Chambers-Direct Ltd (BSB) — carry concentration risk. | Assess each firm's standing and any concentration cap |
| Claim throughput | Firm revenue depends on claim volume, cycle velocity and per-claim revenue holding at modelled levels. The PPI cycle and revenue basis are editable assumptions. | Confirm against actual resolution data |
| Reserve banking treatment | The lending-book enhancement depends on the reserve banking treatment of the ABS held on the balance sheet. | Confirm against CRR II / CRD V and the bank's ICAAP / CRO view |
| Regulatory recharacterisation | Risk the instrument is recharacterised as a collective investment scheme, a litigation-funding interest, or a regulated security with unmet permissions. | Review by FCA-experienced counsel |
| Liquidity | The loan note is illiquid; there is no established secondary market. Term and repayment mechanics are set in the loan documentation. | Hold to term; size accordingly |
| Market correlation | The return is contractual loan interest, decoupled from claim outcomes and uncorrelated to equity, credit or rate markets. | Low — ≈ 0.005 correlation |
Where the Reserve diligence concentrates: two questions sit alongside the firm's covenant — first, the strength of the law firm's outcome-independent cash flow to service the coupon; second, the reserve banking and capital treatment of the ABS under the institution's own framework, which determines the lending-book enhancement. Both are matters for the bank's regulatory-capital team and FCA-experienced counsel.
Four independent quality assessments before bank capital is committed. The panel is structured so that by the time capital is deployed, every claim has been assessed, rated, filtered and processed by specialist regulated counterparties.
| Counterparty | Role | Function |
|---|---|---|
| AiGLe | Genre Rating & Legal Criteria | BSB-regulated barristers providing an independent rating opinion for each claim genre. AiGLe defines the precise legal criteria, precedent basis and evidential requirements every claim must meet before entering the pool. |
| Specialist SRA Regulated Firms | Claim Processing | Specialist law firms processing qualifying claims through the Pre-Action Protocol and civil court system. Full claim lifecycle management from Letter of Claim through settlement or court within the fixed-fee cost structure. |
| E Chambers Direct Limited | Barrister Opinions & Court Appearances | Specialist barristers' chambers providing independent legal opinions and court representation. Ensures independent counsel oversight and qualified advocacy on all court-referred claims. |
| Peter Maughan & Co Limited | Borrowing Law Firm — Sole Obligor | SRA-regulated solicitors' practice (SRA ID 809336, company 12715318) and one of the two named borrowers. The loan is made solely to the law firm, which is the sole obligor on the assured return; the firm processes claims to settlement and assumes the court costs on the residual that does not settle. |
CCF Reserve is designed to pass an IC on any one of the four arguments below, and to pass on all four together. The case does not rely on a view of markets, rates or credit spread. It rests on regulatory capital treatment, structural security, genuine uncorrelated income, and a consistent stewardship footprint.
The committed reserve capital is loaned to the law firm at the assured 100% per annum and used to build the asset-backed securities the bank holds on its own balance sheet. As Basel III reserve assets, those ABSs support a multiple of lending book under fractional-reserve banking — and the net interest margin on that enhanced capacity is a top-down revenue stream over and above the coupon. Treatment under CRR II / CRD V depends on the institution’s binding constraint and internal classification; a treatment memo accompanies the Offering Memorandum.
The assured 100% per annum is contractual loan interest payable by the regulated law firm — fixed, paid quarterly, and decoupled from the success, settlement or recovery of any claim. The firm is the sole obligor, so the firm’s covenant is the credit on the instrument, supported by claim revenue covering the cost of finance many times over. For the small residual that does not settle, the firm assumes the court costs and repays the loan capital. Revenue is a function of a graded, defined claim pool, not manager skill and not market direction.
The coupon is a fixed contractual obligation of the law firm, decoupled from claim outcomes and from markets. Equity correlation is structurally ≈ 0.005 — a property of the instrument, not an observed price series. The facility generates income insensitive to equity beta, rates path or credit-cycle conditions — an uncorrelated diversifier for LDI, insurance general-account and bank balance-sheet mandates. AiGLe Scores, where referenced, are analytical opinions, not credit ratings.
Every deployed pound releases consumer redress already owed under UK statute, narrowing the long tail of undelivered compensation in retail finance (aligned with UN SDG 10 and SDG 16). Claim assessment and processing run digitally through regulated platforms, displacing paper-heavy correspondence and travel-intensive court workflows: a material reduction in the carbon intensity of dispute resolution versus the traditional litigation route. Claimant-protective, regulator-aligned, auditable.
Available exclusively to Tier 1 and Tier 2 regulated deposit-taking banks under Basel III. The process is structured to support your internal credit committee and regulatory-capital review.
One comprehensive document — the Warranted Loan Note brochure and Due Diligence & Supporting Data — covering the instrument, the 100% per annum coupon and 20:1 ratio, the two claim genres, the named borrowing law firms, the Basel III / reserve banking treatment, and the Investment Committee proposal.
Your details and NDA acceptance were captured at sign-in and are already on file. Choose how you would like to engage the placement team. The Reserve product is for Tier 1 / Tier 2 Basel III banks committing reserve capital at institutional scale; commitment size is agreed with the placement team.
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