An Uncorrelated Asset Class

Litigation Funding provides financial support to claimants pursuing meritorious legal actions, in return for a share of the proceeds.

These funding arrangements offer individuals, businesses, and institutions a means to pursue justice without compromising financial flexibility or capital reserves.

How Does Litigation Funding Work?

Capital is provided on a non-recourse basis, meaning returns are generated only when a case concludes successfully through settlement or judgment.

Before any investment is made, each claim undergoes rigorous due diligence, including assessment of legal merits, enforceability, and counterparty risk.

Investments may be structured around:

The funder may cover legal fees, expert witness costs, court fees, and other associated expenses, while the legal team remains entirely independent.

• Commercial Insurance

• Intellectual Property

• Construction

• Environmental

• International Arbitration

Of course, not all litigation funding is impact-driven - some investments are purely opportunistic. However, for investors who value purpose alongside performance, this asset class can provide both.

Case Study:

Bates & Others v. Post Office Ltd

Between 2000 and 2014, hundreds of UK sub-postmasters were wrongfully accused of theft and fraud due to faults in the Post Office's Horizon IT system. Many faced financial ruin, criminal convictions, and personal hardship.

In 2019, 555 sub-postmasters, led by Alan Bates, initiated a group litigation against the Post Office. This legal action was made possible through litigation funding, which provided the necessary resources to challenge a well-resourced defendant.​

The High Court ruled in favor of the claimants, acknowledging the system's faults and the injustices suffered. This case not only rectified individual wrongs but also prompted a broader examination of institutional accountability within the UK's postal system.​

Source: The Guardian

Case Study:

In one of the largest litigation-funded cases to date, UK law firm Pogust Goodhead is representing over 640,000 victims of the 2015 Mariana dam disaster in Brazil—a catastrophic event that caused severe environmental and human damage.

The lawsuit targets mining giant BHP, alleging corporate responsibility for the dam's failure and its devastating impact. The legal action is supported by £450 million in funding from U.S. hedge fund Gramercy, making it one of the most significant examples of litigation finance being used to hold a multinational corporation accountable.

This case highlights the power of litigation funding to support access to justice at scale, enabling victims to pursue compensation and corporations to be challenged in global courts.

Source: The Guardian The Financial Times

BHP & Mariana Dam Disaster