Litigation Finance: A Growing Alternative Investment Opportunity
At Fortis Arbor, we are committed to identifying and evaluating innovative opportunities that deliver both robust returns and meaningful diversification. One area that continues to attract significant attention among sophisticated investors is litigation finance—a rapidly expanding asset class that is transforming the alternative investment landscape.
What Is Litigation Finance?
Litigation finance, or legal funding, involves providing capital to plaintiffs, law firms, or corporations to pursue valid legal claims. In return, the funder receives a share of any settlement or award. These arrangements are typically non-recourse, meaning if the case is unsuccessful, the investor bears the loss and the claimant has no repayment obligation.
This unique structure sets litigation finance apart: investment outcomes are largely uncorrelated with global markets, interest rates, or traditional asset classes, creating an attractive opportunity for diversification.
Why Investors Are Leaning Towards Litigation Finance
1. Attractive Return Potential
Litigation finance has consistently demonstrated the potential to deliver strong double-digit returns. Unlike equity or credit markets, outcomes are tied to the merits of individual cases rather than broad economic trends. This allows investors to tap into a return stream that is both resilient and compelling.
2. Diversification and Portfolio Protection
The performance of litigation investments does not move in tandem with public markets. During periods of volatility, when equities and bonds may be under pressure, litigation outcomes continue to progress independently. This makes the asset class an effective hedge within a diversified portfolio.
3. Increasing Market Demand
The demand for litigation funding is growing. Complex commercial disputes, intellectual property claims, and international arbitration proceedings often require significant upfront capital. Companies and law firms are increasingly seeking third-party funding to manage risk and preserve liquidity. This expanding pipeline presents ample opportunities for investors.
4. Positive Societal Impact
Litigation finance is not only profitable—it also serves a broader purpose. By providing access to justice for claimants who might otherwise lack the resources to pursue valid claims, litigation funding helps level the playing field against larger, well-capitalized opponents. Investors benefit while also supporting a more equitable legal system.
5. Institutional Validation and Growth
The sector has gained credibility as major institutions, private equity firms, and asset managers have entered the space. As regulation, transparency, and market maturity continue to strengthen, litigation finance is well-positioned to become a mainstream component of alternative investment strategies.
The Fortis Arbor Litigation Finance Calculator
To empower our investors with greater clarity, Fortis Arbor has developed a proprietary Litigation Finance Calculator. This tool enables prospective investors to model potential outcomes, assess expected returns, and better understand how litigation finance could fit within their portfolio strategy.
By simulating different scenarios—such as case duration, settlement sizes, and portfolio diversification—our calculator provides a transparent view of both opportunities and risks. It is designed to help investors make data-driven, confident decisions in this exciting and fast-evolving market.
Understanding the Risks
As with any alternative investment, litigation finance carries risks. Case outcomes can be uncertain, timelines may be lengthy, and legal or regulatory changes could alter the market landscape. At Fortis Arbor, we believe these risks are best mitigated by rigorous case selection, disciplined structuring, and diversified exposure across multiple claims and jurisdictions.
At Fortis Arbor, we view litigation finance as a compelling addition to the modern alternative investment portfolio. It offers attractive return potential, low correlation with traditional markets, and meaningful societal impact. Coupled with our Litigation Finance Calculator, investors can explore this asset class with greater confidence, clarity, and control.
As investor demand and market opportunities grow, litigation finance is evolving from a niche strategy into a recognized and rewarding investment class—and Fortis Arbor is proud to be at the forefront of this evolution.
👉 Ready to explore your potential returns? Try the Fortis Arbor Litigation Finance Calculator today and see how litigation finance could strengthen your investment portfolio.
