What is litigation finance? Litigation finance is an innovative asset class, mostly active for the past decade in the U.S. It is the mechanism or process through which litigants (and even law firms) can finance their litigation or other legal costs through a third party funding company like Legalist.
Litigation finance generally refers to the practice of financing large commercial disputes whilst legal funding is generally the purview of personal injury funders. The industries are significantly different and target different demographics.
Litigation financing can be an attractive tool for managing major expenditures for litigation and hedging the risk of an adverse outcome. A number of large hedge funds and public companies dominate the space, but mainly target large multi-million dollar lawsuits in which the funding needed is over $1M. Legalist is the premier litigation financier for SMBs and specializes in providing legal financing to the millions of small businesses and individuals in the U.S. who need financing to finish their lawsuit.
The cost of financing generally varies across the industries and funders will charge different rates dependent on the risk involved in each specific case. Factors that funders consider include the quality of the attorney, the likelihood of liability (likelihood of recovery), and the range of possible recovery amounts. Litigation financiers generally have a team of legal experts review each case.
If you have a commercial lawsuit that needs financing today, contact our team at legalist.com/signup for an evaluation of your case today.