There is a great deal to like about litigation finance for private investors. First and foremost, funding legal claims can result in extremely high returns upon a successful settlement or a court win.

Additionally, legal outcomes are entirely disconnected from the business cycle and completely uncorrelated to other traditional assets like stocks, bonds, and real estate. Last but not least, litigation finance offers a natural liquidity event (unlike private equity and venture capital) during favorable mediations or court outcomes.

How we fund litigation claims?

While there are numerous ways to gain exposure, we execute via three strategies: funding attractive individual claims, financing “best-in-class” law firms, and investing as LPs in diversified litigation funds. Each has its own set of advantages disadvantages.

What are some of the key characteristics of a sound legal claim?

It all starts with strong legal merits, where the depth of evidence and case facts align with the prevailing law of the jurisdiction. Just as importantly, we are betting on the experience and competence of the legal term. And finally, we want to make sure the defendant’s creditworthiness is favorable, while the quantum (claim value) relative to litigating costs has and asymmetric payoff.

Interesting in co-investing alongside us in exclusive litigation opportunities? Please get in contact.

Link to case studies:
Investing in the UK law firm during 2021.