What is it?

Diversify your portfolio with a recession proof investment

Litigation Funding has quickly become a popular asset class. It involves external parties financially supporting lawsuits. This funding offers crucial financial aid to those seeking justice, helping balance legal disputes. Its growth is due to the rising costs of international disputes, causing parties to find ways to lessen financial risks in pursuing claims. The rise in litigation funding also reflects a growing interest in alternatives to traditional legal billing, especially with the high costs of legal representation. For major cases, these costs can reach millions monthly. As companies adopt careful financial strategies, they look for ways to reduce legal expenses and access bespoke solutions.

Investors are attracted to litigation funding because of its non-correlation to the fiscal or real estate markets, promising substantial returns when other investments falter. Litigation funding is a highly specialised niche and its high returns present a unique window for investors. This asset class serves a $750-billion-a-year industry, the legal services market. From family offices, large asset managers, hedge funds, and specialist boutiques, the list of market participants keeps growing each year as litigation funding becomes more mainstream and offers opportunities for scale and diversified portfolios.

Key Components to Litigation Funding

  • Encompasses methods to settle disputes between international parties, notably international arbitration and litigation in global courts.

  • Legal disputes, particularly international ones, are costly. Litigation funding equalizes opportunities, especially for resource-limited parties.

  • Financial entities that assess legal claims' merits and potential returns before funding.

  • Enables parties to afford pursuit or defence of claims.

  • Provides financial stability, encourages law firms to accept major cases, and prevents defendants from prolonging cases to deplete the plaintiff's resources.

  • In international contexts, commercial arbitration and patent infringement claims often get funded.

  • Cases undergo rigorous legal vetting. Expected ROI is at least 5 times the investment. E.g., $2 million loan could result in $30 million damages.

  • Many disputes settle out of court. Skilled litigators aim for the best outcomes without trials.

  • Discounted access and low capital requirements ensure low risks and high returns for investors.

  • Access to undervalued, high-return assets.

  • Measures in place to protect and prioritise the Trust and original stakeholders.

  • Targeting areas with high demand but low supply, leading to above-average returns.

  • Early Exit Points" allow premium exits for investors before investment cycle ends.

Assurance Guarantee Bond

The Bond provides financial protection on the principal amount invested

The AGB ensures that at a minimum an investor will receive their original investment back, should unforseen circumstances arise.

It is a financial instrument used to provide assurance and financial protection

The AGB or similar instrument may differ from product to product, so please read your documents carefully.