Litigation
Finance

What Was Once a Relatively Niche Product is Now a Fully Viable Form of Investment for a Broader Range of Sophisticated Investors

A global network of forensic accountants, fraud examiners, and attorneys are used to source litigation-related opportunities

Litigation finance unlocks the value of legal claims by providing capital to plaintiffs before their cases are resolved. Litigation finance investments have zero correlation with other asset classes and payouts from lawsuits bear no relation to interest-rate rises or stock market swings.

Litigation finance is still a relatively new asset class with room for growth. Cases frequently take three to five years to reach a settlement, and the secondary market is still developing. The growing popularity of litigation finance has been fueled by billions of dollars from hedge funds, private equity and other institutional investors.

In our opinion, these investments perform much like distressed debt combined with venture capital. Some cases will exceed the litigation funders expectations, while some will be total losses, and others will come in closer to the ex-ante expected return. A diversified portfolio including multiple cases can produce much more predictable returns.

Ashton Global Litigation Finance Fund

About Litigation Finance

Litigation finance (also called litigation funding) is the practice of providing capital to a plaintiff involved in litigation in return for a portion of any financial recovery from the lawsuit

Most litigants cannot afford to wait for settlement and investors can receive high returns for simply waiting

Recoveries are hard to model which provide for returns as high as 10x

Litigation finance investments have zero correlation with other asset classes 

Ashton Global Litigation Finance Fund

The fund is focused on identifying litigation-related investments that offer significant upside with defined risk. Capital is provided in exchange for a portion of the recoveries tied to various cases. The fund’s investments are supported by interests in legal recoveries and settlements due to plaintiffs.

Our team uses a network of hedge fund managers, journalists, fraud examiners, and attorneys to generate alpha through litigation-related special situations. Scenario and probability analysis are used to size the portfolio’s positions to provide a balance of income generation and capital appreciation. Payouts from lawsuits bear no relation to interest-rate rises or stock market swings. Average investment holding period is expected to be between three and five years.

Ashton Global Litigation Finance Fund

Investment Strategy

Ashton Global Litigation Finance Fund

How can the risks be minimized?

more information

Long-Term and Uncorrelated Returns

Why should investors be interested?

Returns from litigation finance have been strong and uncorrelated with the broader market.

The returns for litigation finance depend on the outcomes of particular court cases, which are unaffected by market movements.

Cases frequently take three to five years to reach a settlement which provides nice yield duration for a funding portfolio.

Ashton Global Litigation Finance Fund

What was once a relatively niche product is now a fully viable form of investment for a broader range of sophisticated professional investors. Contact us today.

Litigation finance is most appropriate for institutional investors and high-net-worth individuals because of low liquidity and other risk factors. Litigation finance is considered high-risk because the entire initial investment is usually lost if the plaintiff loses the case. An investor should consider the fund’s investment objectives, risks, charges and expenses carefully before investing or sending money. This and other important information about the fund can be found in the fund’s prospectus, or, if applicable, the summary prospectus. Any decision to invest in Ashton Global funds should be made on the basis of the current prospectus, which is available on request at info@ashtonglobal.com. Read the prospectus carefully before investing. All investing involves risk, including potential loss of principal. There is no guarantee that the fund will achieve its objective. 

Our Managers

International Small-Cap

Proprietary screens and a global network are used to identify niche, small-cap, and event-driven opportunities in international markets.

Invest in Emerging Asia

Africa Frontiers

A multi-strategy framework is used to identify undervalued, income generating, niche investments in East Africa.

Invest in East Africa

Direct Lending

We work with companies across various industries to structure effective solutions to provide medium-term capital, while mitigating risks to stakeholders.

Invest in Private Credit

ASHTON GLOBAL

48 Wall Street
New York, New York 10005

212. 514. 8953 (office)

info@ashtonglobal.com

Get directions