Litigation funding, also known as litigation finance, gives investors the opportunity to provide capital to law firms and companies involved in corporate lawsuits. When lawsuits are successful, the investor receives a percentage of the settlement or award. Litigation funds provide non-recourse capital; as such, investors are only compensated if the suit is successful.
As is common in many non-recourse capital opportunities, fund managers often organize litigation investments into portfolios to mitigate risk. That way an investor’s money is diversified among a handful of potentially lucrative lawsuits.
Litigation financing has increasingly gained popularity in recent years, largely due to the incredible demand posed by lawyer fees and other litigation costs at the corporate level.
Most US corporations are involved in at least 37 lawsuits simultaneously, and among companies exceeding $1 billion in revenue, that number increases to 147. Billions of dollars are awarded annually as a result of litigation.
Not only will Garza & Harris help you identify potential litigation investment opportunities, but our firm can advise you in regards to the risk of a case and whether or not you should diversify your investments into a portfolio.