Bloomberg Law has reported that the litigation financing global market has boomed to a $39 billion global industry in recent years. This is in part due to the influx of hedge funds, private equity and sovereign wealth funds. The demand from these players is due to litigation being an uncorrelated asset.
Despite this growth, funders are clear that they are not funding cases for funding's sake. It makes no sense for them to fund vexatious claims or those that are not supported by strong evidence and the law.
“More companies than ever before are exploring how legal finance can help their bottom line,” said Jack Neumark, head of Fortress Investment Fund LLC’s legal assets business. “We lose money if the claims we fund are unsuccessful, so we only finance claims that are supported by strong evidence and the law.”
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