Litigation Finance 101

Litigation finance, also known as legal funding, is transforming how meritorious claims are pursued around the world. At Avyana, we believe that financial barriers should never determine who has access to justice. This page is a plain-English overview for claimants, lawyers, investors, and journalists who are new to the industry.

Litigation finance is the practice of funding legal claims in exchange for a portion of the proceeds, only if the case is successful. It allows individuals, companies, and law firms to pursue strong legal actions without bearing the upfront legal costs or financial risk. The funding is non-recourse: if the case is lost, the claimant owes nothing. It is a performance-based investment model, where capital supports legal merit and accountability.

The process is straightforward. A claimant or their counsel submits a case to Avyana for confidential review. We evaluate legal strength, evidentiary support, enforceability, and financial potential. If the case qualifies, we issue a tailored non-recourse funding agreement and then cover litigation expenses, including attorney fees, court costs, expert reports, and where appropriate, working capital. When the case resolves successfully, Avyana recovers its investment along with the agreed return. If the case is unsuccessful, the claimant bears no repayment obligation.

Litigation finance is used by companies seeking to avoid the impact of legal costs on their balance sheets, shareholders pursuing damages related to corporate misconduct, law firms looking to manage risk in contingency matters, insolvency professionals reclaiming assets, and whistleblowers or minority investors seeking justice against more powerful adversaries. It is a solution for those with strong claims but limited resources, and a strategic tool for those managing legal risk.

Avyana's returns are structured according to each case's profile. This may include a percentage of the recovered proceeds, a multiple of the invested capital, or a hybrid of both. Our model ensures alignment with the claimant: we only profit when the case succeeds. The majority of the proceeds remains with the claimant.

Litigation finance plays a critical role in enabling access to justice. It allows meritorious claims to be pursued based on legal strength, not financial power. It empowers companies to monetise legal assets, supports investors in enforcing their rights, and gives a voice to those who would otherwise be silenced by cost or complexity.