Investing in litigation funding
We provide funding to law firms to support their efforts in fighting commercial lawsuits, allowing us to participate in the distribution of settlement money.
56.8 %
Historical returns
10 %
Maximum allocation
What is litigation finance?
Return multiple over the last two years (industry average)
Reasons why law firms use litigation finance
Who uses litigation finance?
What are the key risk factors when investing in litigation finance?
What types of litigation investment cases enable portfolio diversification, and how has this industry grown?
82%
82% of law firms report that they have declined meritorious cases due to insufficient funding.
98%
98% of lawyers who have used litigation financing say they would use it again.
$3.3 bn
$3.3 billion is the amount invested in funding litigations per year in the US.
Advantages to litigation finance investors
Higher returns
Litigation finance funding offers the potential for higher returns compared to other asset classes. Hedonova's investment has yielded annualized returns of 56%, surpassing the industry average of 51%.
Short term investment
Civil lawsuits in the US take an average of 26 months to conclude, either through court judgment or settlement. This significantly reduces the time to liquidity compared to other alternative investments.
Uncorrelated asset class
Litigation financing returns are not correlated with stock markets, providing investors with an opportunity to diversify their portfolios even during periods of economic turbulence.
Institutional strategy
Some of the world's most respected financial institutions and investment banks invest in litigation-related assets due to their potential for substantial returns and risk mitigation.
Investment process
1. Case selection
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Past investments
These are a few examples of the types of litigation finance cases we’ve invested in. In many of these cases, the invested funds provided equal access to justice for plaintiffs who are unable to pursue their legal claims due to high litigation costs.
Breach of contract
Submarine operator vs Oil exploration company
The submarine-operating firm claimed that an oil exploration company violated contractual obligations in a joint venture.
Patent infringement
Energy company vs Power transmission firm
The defendant allegedly infringed on the plaintiff's patent and used their brand name without permission for five years.
Law firm funding
Class action suit against military contractor
The plaintiffs accused a military contractor of subjecting them to tests far riskier than originally disclosed.
Interim finance healthcare fund
Healthcare litigation
A Special Purpose Vehicle (SPV) and healthcare-focused fund provide retail investors with interim financing for mid-sized assets undergoing bankruptcy and insolvency processes.
Interim finance real estate fund
Real estate disputes
LegalPay backed a litigation finance fund focused on real estate litigation investments.