Defining legal finance
Commercial legal finance is also called litigation funding, litigation finance or third-party funding. The idea is simple: Businesses and law firms use money from a third-party finance provider to pay for commercial litigation and arbitration. Funding comes in many forms (fees and expenses, monetization or advance of entitlement, single matter or portfolio) and does not impact control, which remains with the claimant. Capital typically is non-recourse, not debt, meaning the investment and return are paid only on a successful resolution.
