Thinking About Investing In Litigation Finance?

Litigation funding is a form of financing that provides funds to plaintiffs involved in a legal dispute in exchange for a portion of the settlement or judgment. In other words, litigation funding is a way for individuals or businesses to obtain financial support during a legal dispute without incurring upfront costs.

Why should I invest in litigation finance?

Investing in litigation finance can be a profitable alternative investment opportunity. It has the potential to provide investors with high returns, as the return on investment (ROI) can range from 15% to 30% or more historically. Additionally, litigation finance investments are uncorrelated with the stock market and other traditional investments, making them a great diversification tool for any investment portfolio.

Why is litigation finance attractive to investors?

Litigation finance is attractive to investors due to its non-correlated returns, potential for high ROI, and the ability to invest in a variety of cases, including commercial litigation, intellectual property, mass tort, and class action lawsuits. Furthermore, litigation finance provides a way for investors to support individuals and businesses seeking justice and a fair outcome in their legal disputes.

What is the trajectory of litigation finance?

The trajectory of litigation finance is on the rise, as more and more investors are recognizing the potential for high returns and diversification benefits. The global litigation finance market is projected to reach $22.4 billion by 2027, growing at a compound annual growth rate (CAGR) of 9.5%.

How is litigation finance investments different from traditional investments?

Litigation finance investments are different from traditional investments in that they are based on the potential outcome of a legal dispute. In traditional investments, the performance is based on the performance of a company or asset. Additionally, litigation finance investments are not publicly traded and are often illiquid, meaning that the investment is tied up until the legal case is resolved.

5 reasons why you should invest in litigation finance now:

  • High potential ROI: Historically Litigation finance investments have the potential to generate high returns, often in the range of 15% to 30% or more.
  • Diversification: Litigation finance investments are uncorrelated with the stock market and other traditional investments, providing diversification benefits for your investment portfolio.
  • Non-correlated returns: Litigation finance investments offer returns that are not dependent on the performance of the stock market or other traditional investments, making them a great hedge against market volatility.
  • Access to a variety of cases: Litigation finance allows investors to invest in a variety of cases, including commercial litigation, intellectual property, mass tort, and class action lawsuits.
  • Supporting justice: Investing in litigation finance provides a way to support individuals and businesses seeking justice and a fair outcome in their legal disputes.

 

If you would like to learn more about litigation finance investing, please check out entry into investing in litigation claims and get connected with one of the many helpful staff at Verum Funding.