Litigation Funding Explained
Litigation Funding is an arrangement between a specialist funding company and a client (typically the claimant in a dispute), whereby the funder will agree to finance some or all of the client’s legal fees in exchange for a share of the ‘case proceeds’ (usually the recovered damages).
TheJudge is the market-leading expert in arranging litigation funding. Visit our affiliate litigation funding company, Erso Capital, for more information.
We are experts in arranging non-recourse litigation and arbitration funding for corporates and investors involved in legal disputes.
Litigation funders view legal claims as financial assets, in which they may invest in exchange for a return based upon the success of the funded litigation or arbitration. Litigation funding providers are able to offer a wide variety of financing options for parties seeking off-balance sheet solutions.
At its most straightforward, the third party litigation funder will finance the legal fees and expenses involved in pursuing the claim on a non-recourse basis, in exchange for what is essentially an equity interest in the claim. If the case is successful, the litigation funder recovers its capital invested plus a success fee. If the case is unsuccessful, the funder loses its investment, receives no success fee and has no recourse against the funded party.
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