Navigating Litigation Finance: Risk-Return Profile Across Litigation Finance Stages
- Roni Dersovitz
- May 9
- 2 min read
Updated: Oct 8
Sophisticated investors increasingly seek asset classes delivering meaningful returns while remaining insulated from traditional market movements.
The Rise of Litigation Finance as an Alternative Asset
Litigation finance has emerged from relative obscurity to become one of the fastest-growing alternative asset classes, projected to reach an impressive $60 billion globally by 2034. What drives this remarkable growth trajectory? The answer lies in its fundamental value proposition: returns generated through legal proceedings rather than market movements.
Unlike traditional investments that fluctuate with economic indicators, litigation outcomes depend primarily on legal merit and judicial decisions—factors largely disconnected from broader market performance. This characteristic makes litigation finance particularly valuable during economic downturns when conventional investments may underperform.
Strategic Risk Management Across the Litigation Spectrum
Not all litigation finance opportunities present equal risk-return profiles. The asset class encompasses a spectrum ranging from high-risk pre-settlement funding to the more conservative post-settlement alternatives. Successfully navigating this landscape requires sophisticated risk management strategies tailored to each phase of the litigation lifecycle.
Our latest thought leadership report, "Navigating Litigation Finance: Risk-Return Profile Across Litigation Finance Stages," provides investors with a comprehensive framework for evaluating opportunities across this distinctive investment category.
Key Insights From Our Research
The report explores critical aspects of litigation finance investments, including:
Commercial vs. Consumer Funding Models: Understanding the fundamental structures and their implications for investment strategy
The Litigation Investment Spectrum: Evaluating risk-return profiles across pre-settlement, active litigation, and post-settlement stages
Due Diligence Essentials: Implementing sophisticated assessment protocols specific to litigation finance
Portfolio Integration Strategies: Optimizing allocation percentages to enhance overall portfolio stability
Access the Complete Report
Download our comprehensive guide to litigation finance risk management and learn how leading institutional investors are incorporating this $60 billion alternative asset class into their portfolio strategies.
Roni Dersovitz is the founder of Tower 3 Investments, a firm offering investment opportunities in Post-Settlement Litigation Funding. Mr. Dersovitz has 14 years of experience as a practicing personal injury attorney and has managed portfolios of Receivables since 1998.
To learn more about access to differentiated returns through litigation finance, visit www.Tower3Investments.com or contact us at info@Tower3Investments.com.
