We review FLF Litigation Services (formerly Fortress Legal Finance) – litigation funding bonds paying 7.12 – 11.5% per year

Update 1.10.19: This review was written when FLF Litigation Services was known as Fortress Legal Finance. The company changed its name (again) in September 2019. The original review follows.

Fortress Legal Finance offers unregulated bonds paying 7.12% per year for a 3 year term and 11.5% per year for a 5 year term.

Funds raised are used to invest in litigation funding.

Investors in Allansons (an unrelated litigation funding scheme that collapsed earlier this year) have reported being cold-called with an offer to invest in Fortress paying 12% “guaranteed” over a 6 month period.

Who are Fortress Legal Finance?

andy-lynch edited
Andrew Lynch, Fortress Legal Finance director and owner

Fortress Legal Finance was incorporated in 2015 as Robert Dodd Watches Limited. According to its last filed accounts, it was dormant as at 31 December 2017. In November 2017 it was renamed Litigate Aid Limited, and then a month later to Fortress Legal Finance. In February 2018 Andrew Lynch took over as sole director and controlling owner.

Fortress is yet to file accounts as an actively trading company.

Fortress Legal Finance is currently owned 70% by Andrew Lynch and 30% by Berriblue Limited. Berriblue is owned 55% by Andrew Lynch and 45% by Tracey Lynch.

Fortress Legal Finance’s promotions are signed off by First Financial Advisers Limited. Fortress Legal Finance’s Twitter feed states that it obtained Section 21 approval – allowing its bonds to be promoted – in December 2018.

How safe is the investment?

Fortress Legal Finance is promoted by unregulated introducer Michael Beyer as offering “an investment that is unaffected by market conditions, recession or BREXIT.” and “ability to reduce overall portfolio risk”.

The reality is that these are loans to a small start-up company and carry an inherent risk of 100% loss. For the vast majority of investors holding either cash or regulated investments, investing any amount in unregulated bonds certainly does not reduce overall portfolio risk.

Fortress Legal Finance represents that it will have After The Event insurance in place, which covers it in the event that the cases it funds are unsuccessful.

This does not mean that the investment is risk-free. A document on Fortress’ website states that After The Event insurance typically covers 30 – 40% of the total amount spent on a case.

For the investment to succeed, it is not enough for Fortress just to get its money back (let alone 30-40% of it); Fortress needs to be able to consistently generate up to 11.5% from successful cases after all costs (including the costs of any commissions paid to unregulated introducers such as Michael Beyer to source investment).

Should it fail to do so – an inherent risk with lending money to any small startup – investors risk losing up to 100% of their investment.

Should I invest in Fortress Legal Finance?

This blog does not give financial advice. The following are statements of publicly available facts or widely accepted investment principles, not a personalised recommendation. Investors should consult a regulated independent financial adviser if they are in any doubt.

As with any individual loan note to an unlisted micro-cap company, this investment is only suitable for sophisticated and/or high net worth investors who have a substantial existing portfolio and are prepared to risk 100% loss of their money.

Any investment offering returns of up to 11.5% per year is inherently very high risk. As an individual, illiquid security with a risk of total and permanent loss, Fortress Legal Finance’s loan notes are much higher risk than a mainstream diversified stockmarket fund.

Before investing investors should ask themselves:

  • How would I feel if the investment defaulted and I lost 100% of my money?
  • Do I have a sufficiently large portfolio that the loss of 100% of my investment would not damage me financially?

The investment may be suitable for high net worth and sophisticated investors who will already be well aware of all of the above risks, are looking to invest a small part of their assets in corporate lending, have done sufficient due diligence, and feel that the return on offer is sufficient for the risks involved in lending to a small company.

If you are looking for a “guaranteed” investment, you should not invest in corporate loans with a risk of 100% loss.

13 thoughts on “We review FLF Litigation Services (formerly Fortress Legal Finance) – litigation funding bonds paying 7.12 – 11.5% per year

  1. Thank god you have made us aware of yet another high risk “litigation” mini-bond Brev, you are a life saver. As a victim of the allansons bond, I wish I had read your website before i had burnt my money investing into these scumbags’s misleading products.

    Andy Lynch…By the looks of it is a well known name in the alternative investment and HMRC arena for defending a lot of these alleged financial fraudsters.
    Ironically now he decides to create his own very high risk alternative product that will probably squeeze the fees out of the monies raised from naive investors which as you point out Brev once the agents are paid 20-30% that increases the risk substantially.

    This ATE insurance is overrated and it is sad state of affairs that it is being used a sales tool.

    If these cases were so easy to win why don’t the likes of Roger Allansons and Andy Lynch put their own legal firm’s monies into it?
    instead of raising debt capital at a cost of 20-30% to brokers, which is insane! Furthermore by the time Andy and his fellow partners take their slices, then it is most likely a significant chunk of the original capital is eaten up before any actual real work is done.

    Andy is obviously seeking an early easy retirement here.

    Now it’s just a question of “when” it will collapse like all of these other mini-bonds do once they have raised enough money for the owner’s retirements.

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  2. THE COMPANY HAS BEEN RENAMED AGAIN TO FLF LITIGATION SERVICES, ANDY LYNCH WORKS FOR FRANCIS WILKES AND JONES A REPUTABLE COMPANY, I WONDER IF THEY KNOW ABOUT HIS ACTIVITIES??????

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  3. I just checked Mr Lynch’s current form and it appears his is a Director of FPR Global PLC. Incorporated in March 2018, it states on the website that their sole intention is to float the company on the London Stock Exchange Q1/Q2 2019.
    A requisite to float on the LSE is for 3 years’ audited accounts to be filed.
    Eh?

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  4. What I don’t understand is why the authorities are not putting a hold on these companies and its directors whilst an investigation takes place. Rather than an investigation start once all funds have been misappropriated

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  5. Well well well, why would they change their name so fast again if they had nothing to hide then?

    ….Andy Lynch is a scouser and the truth does not run very far from they say about wackers….
    Rumour has it this company is actually owned by another ex convict pikey scouser by the name of Stephen Piles who sees himself as a bit of a gangster and Andy is just a frontman for him…
    Andy defends a lot of fraudsters maybe he has taken ideas from them to set up this Allansons No.2 which is designed to take the life out of investor’s capital before it defaults….
    Does not surprise me if he setting up an IPO to float too, if he is desperate to make retirement money…..as he obviously couldn’t make it to partner level at any reputable law firm…any investor with half a brain should know how IPOs end up especially with a fraud law specialist running it…..

    It’s really good that the truth is coming to light about these companies and who is really behind them.

    These scumbags need to be investigated…

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  6. Anon, you should really think twice before making your stereotypical scouser comments – it really doesn’t make you clever or credible. Are you still living in the 1970’s?

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  7. Does anyone know why Fortress Legal Finance have changed their name to FLF litigation Services ltd?
    The company itself has changed its name many times, it’s becoming alarming!.

    Please help?

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  8. PROBLEMS WITH FORTRESS INVESTMENT GROUP, THEY HAVE THREATENED LEGAL ACTION AS THEIR NAME IS VERY CLOSE AND ALSO PROVIDE LITIGATION FINANCE, THEY WILL PROBABLY CHANGE THEIR NAME AGAIN WHEN FLF (FERGUSON LITIGATION FUNDING) ALSO CATCH WIND THEY ARE USING A SIMILAR NAME.

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  9. Blimey. You’d think that if people are still thinking up new names for soft drinks, it can’t be that hard to think of a name for a litigation finance company that someone hasn’t already used. 🤨

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  10. i have invested 20k in fortress which i cannot afford to lose .Iwas sold it by someone said to be from global reach who suddenly left the scene.global reach have no knowledge of him .I know i have made a big mistake i tried to cash in some of it but was told no.i am almost 76 and was in a low state at the time with poor health and as now mourning the loss of my wife .I will continue to seek

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  11. I’m very sorry to hear that Adrian. What is the exact name of the company who introduced you? If it was Global Reach Markets Ltd then they are FCA registered and you have a chance of getting some money back. However I have to say it is more likely the person just claimed to work for them or set up a company with an almost identical name in which case it doesn’t look good. Check and keep all the paperwork you have. Fingers crossed it works out for you.

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