During the last ten years, third-party litigation funding has become an essential and profitable product for funders, investors, law firms, and clients. Eventually, the funding model has been changing. And now it looks extremely different from the model that was first introduced to the legal world. One of the signs of this evolution is the emergence of “portfolio financing”.
Portfolio litigation financing has recently been the defining trend in litigation funding. As there has been a shift away from single-case funding toward multiple-case, or “case portfolio”, funding. Portfolio financing is useful for parties who don’t need financial assistance, but seek to offset risk or cut their legal expenditure. This funding model has advantages such as diversifying risk, an even flow of profits and losses, and long-range stability with predictable returns.
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Summarized by Natalia Tsar.