Litigation Finance Uncovered
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ABOUT
Slingshot is a resource to provide unbiased perspectives on all aspects of investing in litigation finance.
WHO WE ARE
The content manager is an active investor in the litigation finance sector, a proponent for litigation finance and its positive societal impact, and an early entrant who recognized the attractiveness of the sector.
SLINGSHOT INSIGHTS
Implications of Portfolio Financings on Litigation Fund Returns
One of the most significant trends in litigation finance for fund managers over the last few years has to be the strong trend toward “portfolio financings”. Litigation finance can be broadly segmented between single case investments and portfolio financing investments.
INDUSTRY BACKGROUND
Litigation finance started in the area of insolvency, where the court correctly recognized that the actions of one party ultimately led to the insolvency of another party.
FAQs
What are the advantages of litigation finance as compared to funding my own case?
The obvious advantage of litigation finance is to transform the bargaining power of claimants against better-resourced defendants. Funders help provide those taking action against large companies with the resources needed to fight a protracted legal battle. Increasingly, it is now about equalizing resources. Claimants who have the ability to self-fund benefit from sharing the cost risk of the litigation and having an expert investor confirm that the case is financially viable. Additionally, the funded claimant benefits from the experience of the funder in funding other cases (a ‘second set of eyes’ with expertise in litigation reviewing the merits of the case) which ensure best practice is followed in managing the litigation process.