Litigation Funding: A Short-Term Fixed Income Alternative with Distinctive Appeal

At Fortis Arbor Wealth, we believe that innovation in portfolio construction doesn’t always mean taking on more risk — it means finding smarter, more resilient sources of return.
One such opportunity sits within the growing field of litigation funding, which we view as a compelling ultra-short-term fixed income solution for discerning investors.

What Is Litigation Funding?

Litigation funding allows investors to provide capital to support carefully selected legal cases, typically commercial in nature. In return, investors receive a contractually defined return when the case concludes successfully.

These transactions are structured with fixed durations — often under 12 months — and with predefined risk parameters, giving investors clarity over both time horizon and potential outcome.

Why It Fits the Modern Portfolio

In a world where traditional fixed income returns remain constrained, investors are seeking yield opportunities that don’t rely on market movements. Litigation funding stands out because it offers:

• Short duration: capital typically deployed for under one year
• Attractive fixed yields, often well above conventional money market or bond instruments
• Low correlation with broader markets, reducing portfolio volatility
• Positive social impact, by facilitating fair access to justice

These characteristics make litigation funding a pragmatic complement to traditional fixed income holdings — particularly for those seeking to preserve liquidity while enhancing yield.

Understanding the Return Profile

The returns available through litigation funding are typically structured as fixed contractual yields, paid upon successful resolution of the funded matter.
While returns can vary depending on case type and duration, investors generally target short-term, high single-digit to low double-digit returns (per annum equivalent), achieved over deployment periods significantly shorter than traditional private credit.

Importantly, the performance of these investments is not tied to financial markets, interest rate movements, or economic cycles — offering a genuine diversifier within the fixed income spectrum.

A Disciplined, Data-Driven Approach

At Fortis Arbor Wealth, our approach is grounded in rigorous due diligence, conservative underwriting, and experienced partner selection. Every opportunity undergoes a comprehensive review to ensure that capital is allocated only to cases with robust legal merit and clearly defined resolution parameters.

To help clients better understand the dynamics of this asset class, we’ve created a dedicated resource that includes an interactive Litigation Funding Investment Calculator.
This tool allows you to explore potential outcomes, durations, and yield scenarios across different case types — all within a controlled, transparent framework.

👉 Learn more and explore the calculator here:
fortisarborwealth.com/services/litigation-funding

In Summary

Litigation funding is more than an alternative asset — it’s a modern fixed income innovation.
For investors seeking short-term, contractual returns with genuine diversification benefits, it represents a refreshing evolution of the yield landscape.

At Fortis Arbor Wealth, we’re proud to help our clients access opportunities that combine stability, transparency, and impact — all within an ultra-short-term, fixed income structure.

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