Dubai’s new tokenized fund for UK law firms targets a 16% annual return

enterpriseam.comPublished by source: Added to RWA Signal: 3 min read
Dubai’s new tokenized fund for UK law firms targets a 16% annual return
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RWA Signal Insight

Private Credit

Seven Stars Legal Group has launched a DFSA-regulated exempt credit fund in the Dubai International Financial Centre (DIFC) that utilizes ERC-3643 security tokens for distribution. Managed by Truleum Venture Partners and administered by Apex Group, the fund targets a 16% annual return by providing senior secured loans to UK law firms and claims management companies. These firms utilize the capital to pursue consumer compensation claims related to motor finance mis-selling, PPI, and other financial disputes. Unlike traditional litigation funding, this structure requires borrowers to repay loans regardless of individual claim outcomes, shifting the risk profile toward full-recourse lending. The fund is seeking to raise GBP 250 million, with a hard cap of GBP 400 million and a minimum investment threshold of USD 50,000. By leveraging the Tokeny platform, the fund aims to streamline distribution to family offices, private banks, and wealth management platforms across the GCC and international markets. This development highlights the growing institutional adoption of tokenized private credit structures within regulated frameworks to enhance operational efficiency and investor access.

Key points

  • Seven Stars Legal Group launched a DIFC-regulated credit fund targeting 16% annual returns.
  • Fund interests are issued as ERC-3643 security tokens via the Tokeny platform.
  • The fund targets GBP 250 million to provide senior secured loans to UK law firms.
  • Minimum investment is set at USD 50,000, restricted to professional and institutional investors.

Background

The DIFC is a leading financial hub in the Middle East that provides a specialized legal and regulatory framework, including the Dubai Financial Services Authority (DFSA) for fund oversight. ERC-3643 is an Ethereum-based token standard specifically designed for security tokens, incorporating built-in compliance rules to ensure that only authorized investors can hold or transfer the assets.

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