Diversify your portfolio and earn stellar returns by investing in Third Party Financing.
Litigation finance, as an asset class, has outperformed private equity, real estate, credit and hedge funds.
Why litigation financing is witnessing a sudden surge in popularity in India.
Litigation Funding: The Current Status Of Third Party Funding In India.
Can the BlackRock-HCC transaction trigger more litigation funding deals in India?
As third party funding (TPF) of litigation takes off globally, will India follow suit?
Infrastructure companies eye litigation funding to settle claims.
Is third party funding of arbitrations the way forward in India.
Learn more about how Third Party Financing works and the advantages for businesses.
Historically, litigation finance has outperformed private equity, real estate and hedge funds on a multiple of invested capital basis.
A study by Professor Michael McDonald in 2016 on the litigation funding industry ROI indicated an average annual return of 36 per cent. LexShares, a leading fund, reports a 52% annualised return.
LitiCap is the first recipient of claims recovered in the waterfall model, so LitiCap and its investors will receive its money before the other parties upon recovery of dues
Reduced outcome risk
We finance litigation extremely selectively and focus on claims where the terms of dispute are pre-determined within the contract, rendering judgment and the award a question of ‘when’ as opposed to ‘if’. We partner with the best lawyers in the country to ensure your contractual rights are enforced.
Reduced time risk
With an improved litigation framework now in place in India, the average life cycle of litigation is becoming shorter with each passing year, resulting in quicker monetisation of claims. The lifecycle of arbitration in India is typically 36 to 72 months. Any delay in recovery of dues is compensated with interest.
Reduced recovery risk
LitiCap primarily finances commercial disputes between businesses and government entities. Unlike litigation between private parties, where bankruptcy poses a recovery risk, claims against government do not bear that risk.
Third-party funding returns are not linked to market fluctuations unlike other investment options, especially in the kind of claims LitiCap funds – violation of pre-existing contractual agreements. This provides an incredible opportunity for investors to diversify their portfolio and decouple it from market risks.
TPLF is already a mature product worldwide with over $100bn investments and over $10bn in the US alone.
The Indian litigation and arbitration landscape are ripe for disruption by Third-Party Litigation Finance due to a combination of improved policy frameworks for arbitration, lower risk claims against Government entities. and the establishment of greater legal precedent for TPLF.
“Liticap offers the chance to partner early with one of India’s first Third-Party Litigation Financiers & Managers. Unlike most other countries, lawyers in India are legally prohibited to charge contingency fees, leaving TPLF as the only alternative to self-funding – this means financiers like Liticap are essential partners to law firms, as opposed to competitors.”
Managing Director, LitiCap
We have extensive experience of dealing with dispute resolution in India from start to finish – we have a unique approach where we partner deeply with clients to work toward a favorable outcome. We are also extremely selective with the cases we fund and thoroughly analyse the merits of each claim before investing.