The history of litigation finance is that of an industry traditionally dominated by big banks and hedge funds. Born in the 1990s in the United Kingdom and Australia, litigation finance began not as specialty finance that helped lawyers and small plaintiffs, but as hedge funds and private finance firms flooded money into mass torts litigation to fund television ads and other marketing.
As the litigation finance market continues to grow, hedge funds and other investors are investing more money in litigation due to the high returns from meritorious lawsuits. However, as the industry grows larger, here at Legalist, we saw a gap in the market that the hedge funds were not addressing.
That gap was the difficulty that small businesses and individuals still had accessing capital for meritorious lawsuits.
That's why Legalist manages our own closed-end fund, but with a special focus on empowering the Davids of the world to fight Goliath. We believe the American justice system should be a fundamentally fair place, and that litigation finance can help.