Clients Embrace Litigation Finance to Cut Costs in Tough Economy

Litigation funders are in high demand in a tough economy, as clients seek to save costs, avoid borrowing and offload risk—all while aiming for big payouts.

Funding requests at Omni Bridgeway increased about 30% this fiscal year compared with a year ago, said Matt Harrison, the company’s managing director and co-chief investment officer. Macroeconomic factors such as tighter credit are helping drive demand.

“The harder it is to borrow money, the more you’re going to see people go to other sources for money if they need it, including litigation funding,” he said.

Validity Finance saw the highest number of leads ...