Though litigation finance has recently been thrust into the media spotlight by Peter Thiel’s backing of Terry Bollea – AKA “Hulk Hogan” – in his suit against Gawker, cause-related public advocacy litigation funding like this has been practiced in the U.S. for decades.
A bit further beneath the radar – and not to be confused with advocacy-based litigation funding – is the fast growing practice of commercial litigation finance. In this burgeoning field, the goal is economic gain, as firms seek to maximize returns by investing only in meritorious claims, which are typically multi-million-dollar commercial disputes carried on by large corporations and the best law firms in the country. Due to economic constraints on legal budgets, and in recognition of the accounting and economic advantages of shifting litigation costs and risks, those who provide commercial litigation finance are finding a wide market with open arms.
