1. Litigation funding: alternative investments independent of the markets
One of the main advantages of this market is its low correlation with traditional markets. Performance does not depend on market forecasts of stock prices or interest rate but primarily on the outcome of legally assessed cases. These are typically clearly structured proceedings with transparent risk assessments and defined amounts in dispute. For investors, this means high transparency, calculable risks, and attractive return potential – especially in the case of a successful outcome where a multiple of the invested capital can be achieved.
Attractive multiples provide the opportunity to considerably reduce risks. With a balanced portfolio it is even possible to achieve double digit returns if 50% of the cases are lost or have a negative return.
Since financing costs are much lower than the value of cases this asset class has similarities to derivative instruments in traditional capital markets.
According to the Preqin study Future of Alternatives 2029, global assets under management in alternative investments are expected to grow to approximately 29.2 trillion US dollars by the end of 2029. This corresponds to an average annual growth rate of 9.7 percent – a clear indication of the rising importance of non-traditional investment strategies.
Democratization of Alternative Investments
While such asset classes were once almost exclusively reserved for institutional investors, new platform models like AEQUIFIN are now opening access to affluent private investors as well. They enable investments in litigation funding starting from comparatively moderate amounts, combined with intelligent risk diversification across multiple cases.
Transparency and Direct Participation as Key Differentiators
Unlike many fund structures, participation via AEQUIFIN is direct and case-specific. Investors gain access to the legal context, the calculated litigation budget, and the estimated prospects of success – all clearly prepared in standardized data rooms. This creates a high level of transparency and traceability, making it easier for both institutional and private investors to evaluate each opportunity.
2. Litigation Funding as a High-Yield Alternative Investment
The basic idea behind litigation funding is as simple as it is effective. Investors provide capital for selected legal disputes and, in the event of a successful outcome, receive a contractually agreed share of the awarded proceeds. For plaintiffs, this offers the opportunity to pursue legal claims without bearing the full financial risk. For investors, it opens access to market-independent sources of return with an asymmetric risk-return profile.
While the litigation funder participates in the awarded amount if the case is successful, they bear the full financial loss in the event of an unfavorable outcome. The investment is therefore based on a “no win no fee” structure, which requires both strict case selection and disciplined risk management.
For corporations which are considering to pursue a lawsuit litigation funding is a risk control instrument. If a case is published on a transparent platform and no offer of funders can be obtained, that could be an indication that risks of a potential lawsuit are too high.
Market-Independent Diversification with Clear Frameworks
A key advantage for investors lies in the low correlation to traditional capital markets. Legal proceedings are not subject to the same fluctuations caused by stock prices, interest rate policies, or geopolitical events as equities or bonds. Litigation funding therefore offers an attractive opportunity for portfolio diversification, especially during volatile market phases.
In addition, the capital commitment is comparatively short. While investments in private equity or infrastructure are often tied up for seven to ten years, funded legal cases can be resolved within six to 24 months. This creates liquidity advantages and enhances the predictability of capital allocation.
The AEQUIFIN platform as the gateway for the litigation finance market
The AEQUIFIN Platform translates the theoretical advantages of litigation funding into a practicable, sponsor-centric offering by operating an online marketplace that seamlessly matches funding needs with sponsor capital.
The financiers on the platform—referred to as sponsors—can efficiently finance and monetize a wide range of case types—with particular emphasis on banking & capital markets, patents and corporate disputes—while preserving alignment through participation in the financial outcome of funded claims.
Risk is managed through transparent case-level data, standardized term sheets and portfolio diversification tools that let sponsors compare pricing and assessed chances of success before committing capital.
Co-financing is facilitated via an innovative bidding process, and all transactions are handled quickly and comprehensively through AEQUIFIN’s infrastructure and an independent trustee arrangement.
As proof of concept, the marketplace has already successfully financed initial cases with a combined claim value exceeding €25 million, and AEQUIFIN will soon make larger cases available for sponsor participation.
For those seeking market-independent, impact-oriented exposure to alternative returns, this streamlined, transparent access to the world of litigation funding is available exclusively on the AEQUIFIN platform. A key advantage for investors lies in the low correlation to traditional capital markets. Legal proceedings are not sub.
Find Out About AEQUIFIN Current CASES
Media Contact
Company Name: AEQUIFIN
Contact Person: Ludwig Zoller
Email:Send Email
Address:Bavariafilmplatz 7, Grünwald
City: Munich Bayern 82031
Country: Germany
Website: https://www.aequifin.com/
