This year has seen the global economic market continue to struggle on shaky grounds; weighed down by the pressure of inflation, conflict in Europe and associated weaknesses in supply chains. As a result, investors have been looking for alternative avenues to seek more reliable and secure returns for their capital, with litigation financing representing a tempting proposition for a growing number of funds.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
This year has seen the global economic market continue to struggle on shaky grounds; weighed down by the pressure of inflation, conflict in Europe and associated weaknesses in supply chains. As a result, investors have been looking for alternative avenues to seek more reliable and secure returns for their capital, with litigation financing representing a tempting proposition for a growing number of funds.
Insights by Katch Investment Group highlight that with the spectre of a recession on the horizon, investing in litigation finance can provide stability that simply cannot be found in the equities market at present. Katch argues that while investors often overlook this asset class due to its complex nature and smaller market size, in comparison to traditional investments, the litigation finance space is not only growing, but also seeing increasingly diversified opportunities with the rise of specialist outfits.
Katch does caution potential investors that engagement in this market needs to be carefully evaluated, with the jurisdiction and type of cases being primary concerns. Furthermore, investors should also assess not only the likelihood of any given case resolving successfully, but also the challenges that may arise when attempting to collect on any financial rewards.
