Litigation finance companies provide financing to companies and individuals, typically with recourse only to the proceeds of the dispute-resolution process; the funding may be used to pay the expenses of the dispute itself or for general corporate purposes. These firms also invest in portfolios of cases. In most cases, the investment is not a loan.

Benefits of litigation finance include:

For counsel

  • Enhances competitiveness and increases revenue

  • Smooths lumpy income streams

  • Ensures prompt payment of fees

  • Monetizes WIP

  • Alleviates client’s fee fatigue

For litigants

  • Enables a choice of lawyer based on quality and experience, not price

  • Improves settlement dynamics (timing and quantum)

  • Overcomes liquidity or budgetary constraints

  • Non-recourse funding 

  • Spreads litigation risk

  • Controls cost and provides budgetary certainty

  • Avoids adverse impact on corporate balance sheets and earnings

  • Monetizes the claim and/or judgment on appeal to fund business operations