Is litigation finance a new idea?

As humans, we’re often afraid of new things. Because new means change, and we’re not always ready for change. We’re far more trusting of tried and tested practices and philosophies that can show proof of concept. When it comes to investing and finding alternatives to traditional markets and strategies, it can be a risky landscape. 

Litigation finance is several decades old, even though it is only recently finding increased favour with investors.

In short, litigation finance is the mechanism or process through which litigants can finance their litigation or other legal costs through a third party funding company. So – to some degree, it’s always been around. 

As a formalised, legitimate framework, it has been permitted in England and Wales since 1967 (and in insolvency matters since the late nineteenth century). Commercial litigation funding was allowed in Australia in the late 1990s, following similar developments in the US, Canada and Asia. It’s far more unregulated in countries like South Africa, but there are case histories that have offered guidelines for pactum de quota litis – the agreement to share the proceeds of one or more lawsuits.

Litigation finance is not a new strategy, ticking off the boxes of being a tried-and-tested alternative investment opportunity.

It’s also helpful to know that litigation finance is generally not considered a loan but rather an asset purchase or venture capital. Most commonly sought in personal injury cases, it may also be sought for commercial disputes, civil rights cases, and workers’ compensation cases.

As litigation finance is a non recourse cash advance, our many years of experience at GreenPark Global have equipped us to identify qualifying cases that have sufficient merit to deem the investment in the cases to be worth the risk. 

Litigation finance is not a new idea, and we’re not new to this game. We’ve been doing it long enough to gain access to cases and opportunities that offer increased possibilities for lucrative outcomes.