In the ongoing search for new categories of assets with increasingly attractive rates of return, family offices and investment funds are increasingly looking to litigation and arbitration disputes for new opportunities.
This is the first in a series of notes that touch on key aspects of this still developing asset class, and the growing trend for the commercialisation of disputes. The aim of this initial note is to provide a general introductory overview of the prospects of third-party funding, with later notes in the series providing more detail around matters such as (i) the structuring of specific funds to invest in disputes; (ii) important factors when investing in claims, in particular the appropriate contractual framework of funding agreements; and (iii) key considerations when acquiring final judgments and/or arbitration awards, including potential follow-on investment in enforcement proceedings in order to realise the full value of a purchased asset.
