Although still something of a “hot” topic, litigation finance is no longer a new concept in the legal industry. Both the growth of litigation finance operations and the widespread acceptance of the use of litigation finance by firms both large and small indicate that litigation finance is an accepted part of the modern practice of law.

Litigation finance can occur in many different ways, but the concept is relatively simple. In most instances, a third party provides funding to a litigant to pay for attorney fees and other costs in exchange for an interest in the outcome of the lawsuit. Litigation finance thus allows parties to either pursue litigation that they could not otherwise afford, or to minimize the risks associated with litigation by sharing the costs with a third party.