Litigation finance

We offer funding to law firms for fighting commercial lawsuits, enabling 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 are some types of litigation investment cases to diversify one's portfolio 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 having turned away meritorious cases because they were underfunded.

98%

98% of lawyers who have used litigation finances say they would use it again.

$3.3 bn

$3.3 bn is amount invested in funding litigations per year in the US.

Advantages to litigation finance investors

Higher returns

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.

Institutional strategy

Some of the world's most respected financial institutions and investment banks invest in litigation-related assets.

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 alleged that an oil exploration company breached contractual duties it owed towards a joint venture.

Patent infringement

Patent infringement

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

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

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

Interim finance real estate fund

Real estate disputes

A litigation finance fund supported by LegalPay, specializing in investments related to real estate litigation.

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