Litigation finance
Capital that funds legal claims, repaid from what the claims recover. Returns depend on legal outcomes rather than on markets.
- What it is
- Litigation finance provides the capital legal claims need to reach a result. Investors fund the claims, usually through a note or agreement with the law firm or funder running them, and are repaid from what the claims recover.
- Where returns come from
- The outcome and timing of the underlying claims: settlements, court awards or payments under a redress scheme. They are not tied to share prices or interest rates.
- What we look for
- A law firm regulated by its professional body, a large and diversified book of claims, a clear legal basis, and protection arrangements that are properly explained.
- Areas we cover
- Consumer redress portfolios, including UK motor finance claims (our current focus), commercial litigation, international arbitration, insolvency and asset recovery, and judgment enforcement.
- Worth knowing
- Legal processes can take longer than expected, and capital is at risk. The documentation sets out the terms in full.