INVESTMENT OBJECTIVES AND STRUCTURES

AFC intends to invest in a wide variety of litigation-related opportunities.  Our investment objective is to build a diversified portfolio of investments and to provide investors with an attractive level of cash distributions.  AFC anticipates that it will have to consider or examine several investment opportunities for every investment that is actually funded.  AFC may seek to achieve diversification of investments by industry, type of dispute, jurisdiction, claim size and expected time-to-return, although all investments will be expected to return within three to five years of the date such investment is made.

Initially, AFC intends to make investments primarily in California and Texas, where AFC believes that such investments are considered to be lawful and permitted under applicable laws and/or rules of professional ethics.

AFC will use a variety of structures to enable AFC to make investments in litigation-related investment opportunities.  These structures will be carefully customized by AFC for each case opportunity in order to seek compliance with legal requirements and local rules on professional ethics as well as seeking to ensure the enforceability of AFC’s investment contracts and collectability of the relevant share of the recoveries.