Who are the funders offering funding for litigation?
When referring to “funders” of litigation finance, we are primarily referring to professional fund managers – often those that run dedicated investment vehicles, whether the private or public markets. An example of these are private equity-type funds with long-term committed capital that enables the managers to make discretionary investments based on the merits of a particular opportunity. While these cases are very personal to a claimant – most investors view the opportunity set dispassionately on a risk and reward basis – no different than if they were investing in the stock market. However, there are other funders active in the marketplace like hedge funds, credit funds, family offices and high net worth investors.