⚖️Economics of litigation finance

Investors can expect to earn between 2x and 4x on the total principal amount which they have invested in the lawsuit.

What one must keep in mind is that the returns are only earned if the claimant wins, else he/she can lose all their money at once.

According to a report on litigation finance by Westfleet, $2.8 billion of capital was deployed in the U.S. Commercial Litigation Finance last year. Globally, this industry is growing at around 8% every year.

As the industry adjusted to a global pandemic and disruption to the civil justice system, the capital committed by funders to new financing deals also grew by 11% to $2.8 billion in 2021.

The market is slowly adjusting after the pandemic, and we can see significant growth in this industry every year.