A fund designed for financing Black Cube’s investigations in exchange for profits participation

In today’s low-yield investment environment, it has become challenging to find investment opportunities with substantial rates of return. This, coupled with the escalating and often unpredictable costs of complex litigation – which claimants often struggle to fund themselves – has sparked a growing interest amongst investors in litigation financing as an alternative and lucrative income stream, in return for a share of the settlement or damages proceeds.

Building upon models of third-party litigation finance, we have established KLAF – a unique fund that is specifically designed for financing Black Cube’s investigations. The fund will allocate resources for investigations that clients cannot afford themselves and with respect to which Black Cube’s intelligence capabilities can critically  affect  the legal proceedings. By doing so, KLAF would generate profitability for investors and support cases that might otherwise languish for a lengthy period or fail to achieve success from a lack of strong evidence.  Each potential case will be brought to  an  independent  investment-committee,  composed  of senior figures from the intelligence, legal and finance fields. The committee will decide which cases have the highest yield-potential, while considering wise risk-management for the fund. Most cases will be taken in collaboration

with top-tier international law firms – KLAF will fund the investigation and the law firms will fund the litigation on a contingency-basis.

Black Cube, founded in 2010, has long become synonymous with innovation in the field of investigative intelligence and has gained an international reputation as a leader and pioneer in the field of litigation support. Since its establishment, the company has worked on hundreds of cases, alongside top-level law firms and across various jurisdictions, providing exclusive information that often completely changed the course of litigation, be it ״smoking gun״ evidence, undeclared assets, or proof of misconduct.

KLAF will operate as an independent and autonomous entity with complete decision-making authority over the allocation of its capital. Its management committee will comprise leading litigation, intelligence and finance experts.

KLAF will operate in full transparency and compliance with all applicable laws and regulatory requirements, with funds being held and handled by a leading, London-based asset management firm.

Fund Terms

5%-35%

Case Profit Participations

£15M

Fund size

5 Years

Investment Period

£0.5M-1M

Investigation cost

Enhancing cases by
building evidence

Enabling quick settlement
instead of prolonged judgment.

Advisory Board

Mr
EFRAIM HALEVY

Efraim Halevy, ninth head of the Mossad, has capped forty years of service including command of two major operational divisions and extensive field service. Serving five prime ministers as head and deputy chief for ten years, he was their secret envoy on key issues. He also served as ambassador to the European Union, headed the National Security Council and the Hebrew University Center for Strategic Studies.

Major General (Ret.)
GIORA EILAND

Following an illustrious career in the Israeli army, Mr Eiland headed the IDF’s Operation Branch, IDF’s Planning Branch and eventually Israel’s National Security Council. These positions placed him in the top security and intelligence echelon within Israel and internationally. He leverages his experience and international relationships built over decades in the security, intelligence and strategic planning fields in his ongoing consultancy to governments and multinational corporations. Mr Eiland also serves as an expert in many large-scale international arbitrations.

CBE
ADRIAN LEPPARD

Mr. Leppard served as the Commissioner of the City of London Police and the national UK policing lead for fraud and cyber-related crime. An expert on intelligence, counter-terrorism, extortion crime, and cyber defense, he led investigations on serious crime and complex intelligence operations, including the world’s largest cash robbery. He was honoured by HM The Queen and appointed Commander of the British Empire for his services to the UK in preventing economic crime. He is a recipient of the Queens Police Medal.

Case Studies

Complex Asset Tracing

Bank Hapoalim, an Israeli major bank tried to recover assets from the estate of the deceased Motti Zisser, a former bankrupt client. Black Cube was hired by the bank to locate the deceased’s assets around the world, and among other assets, managed to locate a chain of hotels in Brussels, an entire hotel-mall complex in Amsterdam, a chain of rental apartments in Strasbourg and a furniture company of hotels in Hong Kong. 

The investigation revealed a Swiss lawyer that controlled the companies and was related to the deceased. The recordings and documents obtained confirmed that the deceased himself had controlled the assets and they were in fact owned entirely by him through a sophisticated and complex net of individuals and straw companies. The investigation led to a successful settlement with Zisser’s estate and with the Swiss lawyer of NIS 95M.

95M ₪

Amount recovered by client using Black Cube’s intelligence

Proving Bribery and Enforcement

The client, a major player in the precious stones business, won an ICC arbitration related to a legal dispute with a former business partner over a precious stone mine. The arbitrators ruled $62M in the client’s favour. The former partner claimed they didn’t have enough money or assets and refused to pay the award, which led the client to hire Black Cube to reveal his assets and ways to enforce.

Black Cube’s investigation discovered many assets owned by the former partner in North America and other enforceable countries in Europe, and proved that the other side sold one of their assets lately, bluntly breaching the freezing order that was obtained in London following the reward. Black Cube provided further evidence in regard to the criminal business activities conducted by the former partner, including bribing of government officials. Using the intelligence gathered by Black Cube, the client managed to settle with the former partner and received payment of the full amount initially owed, $60M.

60M $

Amount recovered by client using Black Cube’s intelligence

This document is prepared and issued by KLAF Investments Management I Limited for KLAF I LP (hereinafter the “Partnership”) and is being made available to potential investors on a confidential basis and relates to the proposed offer of limited partnership interests in the Partnership. It is issued to provide initial information only. This document should not be treated as giving investment advice and is not intended to form the basis of any investment decision. You should not construe the contents of this document as legal, tax, regulatory, financial or accounting advice. All recipients should carry out their own due diligence before deciding to invest and to get advice from legal, tax, regulatory, financial, accounting and any additional relevant advisors as may suit the requirements of each recipient. The Partnership is formed as a limited partnership under the laws of Gibraltar. No interests in the Partnership are expected to be listed for trading in any stock exchange or any other market and in no event will any interests in the Partnership be issued to any recipient, if such issue will require the Partnership to issue any prospectus or to become a public entity. The rights and obligations of any partner in the Partnership will be governed solely by the partnership agreement to be executed by the partners. Nothing herein will constitute any amendment, attachment or addition to the partnership agreement, and the information disclosed herein should not be deemed to construct, amend, interpret or otherwise affect the partnership agreement. No person shall become a partner in the Partnership, unless such person is accepted to the Partnership by the General Partner and executes the partnership agreement. The Partnership will not be regulated for the conduct of investment business in the UK by the Financial Conduct Authority. This document is being issued to a limited number of persons and may not be distributed to anyone else without the written permission of the Partnership. This document does not constitute an offer to sell any securities or interests in the Partnership in any jurisdiction and is not being distributed to persons outside the UK, EU, Switzerland, Israel, the United States, Canada and Gibraltar. An investment in the Partnership may not be suitable for all recipients. The information herein, which is not and does not purport to be comprehensive and conclusive or to contain all the information that you may need in order to evaluate an investment in the Partnership, has not been independently verified or reviewed by any securities regulatory authority. No representation or warranty, express or implied, is given and, and no responsibility or liability is accepted by any person, with respect to the accuracy, fairness or completeness of the document or its contents. No information set out herein shall form the basis of any contract. No reliance may be placed for any purpose whatsoever on the information contained herein or on assumptions made as to its completeness. In providing this document, the Partnership does not undertake any obligation to provide any additional information or to update or keep current the information contained in this document or any additional information or to correct any inaccuracies which may become apparent. This document is presented to you only subject to the foregoing limitations. If you do not agree to the foregoing limitations, you are not entitled to accept this document and requested to return the document to the sender.

Black Cube’s investigation fund

Contact: info@klaf-fund.com | www.klaf-fund.com | World Trade Center, 6 Bayside Road, Gibraltar | +350 2000 8666

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