Litigation Financing
Litigation financing, an asset class with very low correlation to traditional financial markets and a diversifying element in an unlisted portfolio
Litigation financing involves providing financial resources to legal actions (legal fees and expert opinions) brought by companies, associations, or foundations to enable them to obtain compensation for their losses. This segment of the private debt market offers performance uncorrelated with markets and interest rate fluctuations.
Major trends
Estimated at $23.57 billion in 2024, the litigation finance market is undergoing rapid expansion, with projections estimating it will reach $25.84 billion in 2025 and $59.78 billion by 2034 (Market Research Future). This growth responds to two key challenges: optimizing corporate P&L by reducing the need to draw on equity, and enhancing access to justice, particularly in the context of class actions. In Europe, the number of compensation claims continues to rise, driven by developments in competition law, GDPR enforcement, and the application of the “Damages” Directive.
IVO Capital is a leading and established player in the European market, with over a decade of experience in this asset class—whose unique characteristics continue to enhance its appeal to investors. Litigation financing stands out due to two key asymmetries. First, court and arbitration outcomes are largely independent of financial market movements and macroeconomic cycles, offering investors valuable portfolio decorrelation. Second, the size of the financing required for a case is not directly tied to the potential payout: the cost of litigation or arbitration is driven primarily by legal complexity, rather than the amount at stake.
Our Investment Universe
Over the past decade, IVO Capital has financed approximately fifty legal cases. The portfolio is diversified both geographically (spanning Continental Europe, the United Kingdom, North America, and beyond) and in terms of claim types. These include compensation claims following sanctions imposed by regulatory authorities (such as competition authorities and the CNIL), as well as claims arising from breaches of contractual obligations. Cases are pursued through both arbitration and state court proceedings, with the objective of securing compensation for damages incurred.
Are you a law firm?
Submit your legal case to us
Contact us to confidentially submit your legal case for review
Are you a plaintiff?
Secure funding for your legal case
Contact us to confidentially submit your legal case for review
Are you an investor?
Gain access to a diversified, decorrelated asset llass
Our rigorous approach to case selection, our financial engineering, our legal expertise and our active risk management allow us to generate competitive risk-adjusted performance
An experienced team at the service of our customers
