Asset classes
A primer on litigation finance
How claim funding works, where returns come from, and the risks that are specific to legal outcomes.
· 8 min read
Returns are linked to case outcomes
Litigation funders pay legal costs in exchange for a share of any award or settlement. Returns can be high when cases succeed, but a lost case may return nothing.
Timelines are uncertain. Appeals, procedural delays and enforcement against a defendant can extend the duration well beyond initial estimates.
Diversification and duration
Portfolio facilities spread risk across multiple claims, but outcomes may still be correlated by jurisdiction, claim type or defendant. Investors should expect illiquidity for the full life of the portfolio.
This article is general information, not investment advice. Private credit and alternative investments are illiquid and high risk. You may lose some or all of your capital. Indicative returns are not guaranteed.