Litigation Funding

Litigation funding is capital provided to a party or a law firm to pursue a claim, repaid from the proceeds of that claim and usually non-recourse if the claim fails. It turns a legal outcome into a financed asset with a return that depends on the result, its timing and its collection.

Funding arrives in several forms: advances to individual claimants, case-cost funding for a firm, working capital against fee receivables and portfolio facilities that finance many matters at once. In each, the funder is paid from resolution proceeds under a contract that fixes how the proceeds are shared.

The funder's risk is not only whether the claim succeeds. It is also how long the matter takes, how much is collected and how the position sits next to others in the same book. Pricing that ignores any one of the three is incomplete.

Litigation funding is not a loan to the client in the ordinary sense and does not give the funder control of the case. Rules on control, disclosure and champerty differ by jurisdiction and shape the structures that are available.