Litigation Finance Has Surpassed $1 Billion Raised in Busy 2020

The launch of a new $200 million fund by Pravati Capital on Tuesday brings litigation finance firms over the $1 billion mark for funds raised in 2020, according to a Bloomberg Law analysis.

The inflow of capital comes as litigation funders, which invest in lawsuits and are paid out only if cases earn a return, say they have seen a surge in demand related to the coronavirus. Parties in ongoing cases are seeking to monetize their claims rather than continue to pay to litigate, and new lawsuits related to business disruptions caused by lockdowns are attracting funders.

“Our assessment last ...