Litigation Finance and Personal Injury

Litigation finance is one of the most interesting and lucrative investment classes to have manifested in the recent years.  However, when most individuals think of litigation finance, they usually only think of half of the industry, commercial litigation.  The other side has received much less attention because it is assumingly less lucrative.  This other side of the field is the personal injury side.

Personal injury financing is beginning to become increasingly popular to within the industry.  Claimants in personal injury cases typically are regular people with small dollar claims.  This means that the total investment might be between five thousand and hundred thousand. Additionally, financers are likely to finance between 5% to 15% of the entire complaint. As a result, to be profitable, the typical personal injury financer must invest in many cases.

With the vast number of cases that an investor will need finance, they can take advantage of modern technology such as artificial intelligence and various algorithms.  Ultimately, personal injury financing can be quite profitable if invested in correctly.

Overall, the personal injury and commercial areas of litigation finance can learn from one another.  A great litigation financer should consider having investments in both of these.

Keywords: litigation finance, profitable, personal injury

Work Cited:  Michael McDonald, The ‘Other’ Litigation Finance, Above the Law (March 21, 2017)