We offer funding to law firms for fighting commercial lawsuits, enabling us to participate in the distribution of settlement money.
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 are some types of litigation investment cases to diversify one's portfolio and how has this industry grown?
82% of law firms report having turned away meritorious cases because they were underfunded.
98% of lawyers who have used litigation finances say they would use it again.
$3.3 bn is amount invested in funding litigations per year in the US.
Advantages to litigation finance investors
Litigation finance funding has the potential for higher returns compared to other asset classes. Hedonova's investment has returned 56% annualized returns while the industry average stands at 51%.
Short term investment
On average, civil lawsuits in the US take 26 months to resolve by the way of court judgements or settlements. This brings the time to liquidity a lot faster compared to other alternative investments.
Uncorrelated asset class
Gains from lawsuit financing are uncorrelated with stock markets allowing investors to diversify their portfolios even during periods of economic turbulence.
Some of the world's most respected financial institutions and investment banks invest in litigation-related assets.
1. Case selection
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
Submarine operator vs Oil exploration company
The submarine-operating firm alleged that an oil exploration company breached contractual duties it owed towards a joint venture.
Energy company vs Power transmission firm
Defendant allegedly infringed on plaintiff's patent and conducted business with the latter's brand name for five years without authorization.
Law firm funding
Class action suit against military contractor
Plaintiffs accused a military contractor to have subjected them to tests far riskier than originally disclosed.
Interim finance healthcare fund
A Special Purpose Vehicle (SPV) and healthcare-focused fund for retail investors for interim financing to mid-sized assets under bankruptcy and insolvency process.
Interim finance real estate fund
Real estate disputes
A litigation finance fund supported by LegalPay, specializing in investments related to real estate litigation.