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

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What is litigation finance?

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Graph showing the return multiple over the last two years (industry average)

Return multiple over the last two years (industry average)

Reasons why law firms use litigation finance

Pie chart showing the reasons why law firms use litigation funding
Bar chart showing who uses litigation finance?

Who uses litigation finance?

What are the key risk factors when investing in litigation finance?

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What types of litigation investment cases enable portfolio diversification, and how has this industry grown?

Two charts showing the types of litigation funding in years 2019 and 2020

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

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1. Case selection

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Past investments

These are a few examples of the types of ligation 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

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

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

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

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

Interim finance real estate fund

Real estate disputes

LegalPay backed a litigation finance fund focused on real estate litigation investments.

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