The concept of litigation finance is grounded in the desire to create returns for investors while leveling the playing field for plaintiffs and lawyers going up against multi-national corporations. Because the strengths of this type of non-recourse funding is reliant on the success of the cases, only strong cases are funded.
Since its start in the 1990s, the United States litigation finance market has seen growth of $3 billion, as reported by The New Yorker. Understanding that some form of oversight is beneficial to all parties involved, the industry began to regulate itself through organizations like the American Legal Finance Association, an organization that Pravati Capital’s CEO served three years on the executive council.
The litigation finance industry has grown significantly in recent years and only shows signs of continuing to expand.