Litigation finance is an asset class that offers uncorrelated returns by funding legal cases in exchange for a share of settlement proceeds. It provides capital to claimants, often businesses or law firms, to pursue strong legal claims that may lack sufficient resources. Returns are primarily driven by case outcomes and legal merits, making litigation finance largely independent from broader market movements.
Why Invest in Litigation Finance with Blue Lakes?
Get more context on litigation finance through our expert-produced content and insights:
More and more investors use litigation finance to protect themselves against market swings while claiming double-digit returns.
Traditional financing options don't fit law firms’ needs, making specialized litigation funders the go-to solution for tailored, flexible funding.
Blue Lakes partnered with a leading litigation funder to create a custom investment vehicle designed for wealth managers, family offices, and qualified investors seeking uncorrelated returns.
This strategy provides exposure to a cross-collateralised portfolio of litigation finance opportunities across Europe and the U.S. The European cases are based on competition and anti-trust claims where liability has already been established, offering efficient settlement potential rather than active litigation. The U.S. component is a secured credit facility to a law firm with $70M+ in collateralized Work in Progress. Returns are driven by structured legal recoveries with strong downside protection.
Strategy Type
Batch Claim SPV
Return Profile
25% per annum + 10% profit share
Liquidity
36-month term (Callable after 12 months)
This strategy funds mass-volume consumer claims in the UK, focusing on housing disrepair and motor vehicle finance disputes. Capital is provided to experienced law firms through insured, asset-backed lending. The firms target claim types with legal precedent, high success rates, and strong enforcement pathways. Claims are covered by ATE insurance, offering an additional layer of risk mitigation.
Strategy Type
Mass-volume consumer claims
Return Profile
18% per annum (Net)
Liquidity
Semi-annual (365 days notice)
From manager sourcing to portfolio oversight, our process is designed for investors seeking clarity, control, and uncorrelated returns.
Our in-house legal expertise allows us to connect you to best-in-class litigation opportunities with tailored structures, shorter durations, and transparent partnerships.
Litigation finance is traditionally a long-duration asset class, with cases often taking 7 years or more to resolve. At Blue Lakes, we focus on shorter-duration strategies by selecting advanced-stage claims in efficient jurisdictions. This allows our investors to access legal finance with timelines typically ranging from 2 to 5 years.
We structure access to legal finance with select fund managers through vehicles tailored for wealth managers, family offices, and qualified investors. Our edge lies in exclusive partnerships, in-house legal expertise, and a clear focus on claims with low litigation risk, strong legal precedent, and efficient court resolution. Investors benefit from diversified exposure, transparency, and a return profile uncorrelated to public markets.
Minimum investment levels vary by product structure. Most litigation finance strategies we offer are designed for qualified investors, with entry points typically starting from $100,000. We provide clear documentation and support to ensure alignment with each investor’s profile and risk appetite.