What Types of Litigation Finance Are Available? | Steno

The rise of litigation financing is inspiring more plaintiff’s attorneys to investigate the benefits of seeking outside investment to build a strong case for their clients. However, it can be intimidating to decode exactly what litigation financing options exist and what circumstances must be met for attorneys to access them.

In this article, you will learn what types of litigation finance are available for attorneys and their firms’ case funding needs.

Commercial Litigation Finance: The Industry Standard

Commercial financing is typically a non-recourse investment in commercial disputes where the claimant is a company or an individual. Generally, the claimant agrees to pay a portion of the recovery to the funding organization.

Commercial litigation funders typically provide capital for high-value, complex cases, including:

  • Antitrust
  • Breach of Contract or fiduciary duty
  • Intellectual property
  • Insurance

Parties are typically business entities with sophisticated counsel. On average, commercial litigation financing is in the $1 million range.

What Are the Most Common Types of Commercial Litigation Finance?

There are many types of commercial financing, but single-case and portfolio financing are most common in the United States.

1. Single-Case Financing

This type provides capital for legal finance and expenses to support a single case, with a non-recourse return structure.

Single-case financing can cover fees incurred by the claimant’s lawyers and cover…

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