Investment Profile

Aristata Capital

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Aristata seeks to invest in human rights and environmental litigation—providing financial support for plaintiffs who would otherwise not have the resources to bring their cases to court.
Workers clean up oil spilled on a beach
Workers collect sand affected by an oil spill at a shoreline in Karawang, West Java, Indonesia, on August 4, 2019. © Andrew Gal/NurPhoto/Newscom
Investment size $6M
Theme Strategic Litigation
Type Indirect
Geography Global
Sector Legal
Date 2022

Theory of Change

Our investment in Aristata helps ensure strategic litigation is accessible to people and groups with justiciable human rights claims who otherwise do not have means to pursue justice.

Challenge and Context

An established and global market of substantial scale, the litigation funding sector utilizes both finance company (loans for an individual case and loans to fund a portfolio of cases) and private equity models to invest in commercial litigation. Third-party private sector investment in litigation is already a widespread practice—with investors receiving a share of awards when cases are successful in exchange for funding legal costs. Traditional litigation funds invest in commercial claims to maximize high financial returns irrespective of wider societal concerns and potential impacts.

Proposition

Aristata seeks to fund strategic litigation by groups who otherwise would not be heard before a court and cases that could potentially seed systemic change, equalize power dynamics, and protect communities.

Expected Outcomes

Significant increase in public interest litigation, specifically from marginalized populations who stand to benefit. Secondly, support of social justice cases that result in legal victories will lead to positive legislative and policy changes.

Why SEDF?

SEDF had the opportunity to play a catalytic role in providing a commitment to this first-time fund manager and assist fundraising for this innovative and risky project.