Litigation finance: An evolving asset class
A rapidly growing segment of the private debt market, litigation finance is the third-party funding of legal cases in exchange for a share of the proceeds.
As investors seek alternatives to traditional markets, litigation finance is fast becoming a compelling choice for those looking to bring diversification to their portfolios.
Not only is it largely uncorrelated with volatile traditional asset classes like equities or bonds. It has the potential to deliver attractive risk-adjusted returns. Plus, it supports access to justice to individuals or organizations who otherwise wouldn’t be able to afford it.