Litigation finance is growing in prominence in the legal industry, embraced not just by lawyers but also increasingly by courts and state bars. As lawyers and claimholders have come to understand the utility and flexibility of litigation finance, the demand for funding has increased, and so too has the number of funders in the market. Some funders (like Lake Whillans) focus exclusively on litigation financing, whereas others are incorporating litigation finance investments as part of a larger investment portfolio. Some funders are interested only in the highest-value disputes, whereas others target smaller investments. Some will fund a strong case in any area of commercial litigation, whereas others specialize in a more focused range of cases.
How are claimholders choosing among the increasing diversity of funding options? How should they be choosing? In this article we first present some empirical evidence on considerations in funder selection and then offer our advice, gleaned from our long experience in the litigation finance market.Read More