What if you have a substantial ancestral property, fertile lands, and the trendiest office as your wealth, but it's under dispute? You would go for legal proceedings, but you are out of cash; all your assets are locked in with the dispute. Thus, you cannot go ahead with legal proceedings due to unaffordable costs and, hence, end up losing your rights.
Well, it's a pretty unjust situation, yet you would dream of not happening to anyone. Only some of you would have got the answer and would now be looking for Litigation Financing with Hedonova, and here's where I have mentioned everything in detail!
What is Litigation Financing?
Litigation financing is a kind of alternative investment wherein a third party can fund a legal case settlement like in dispute cases. In exchange, a part of the share, property, or the tangible reward is given to the party if the case is in the favor of the client who used the party's fund.
While some of you might find it as an odd or fraudulent deal while others would think of it as a bed full of roses, it's essential to consider the thorns as roses properly.
Below-mentioned is a list of the same:
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Litigation Finance allows people to seek their rights and justice if they don't have money. Disputes are common, yet the high costs of litigation are pretty unaffordable. Hence, individuals/companies seek such funding to pursue a case they won't be able to defend otherwise!
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The Litigation Financing party has to pay for expenses like attorney fees, expert witnesses, case charges, and more. Post which you would get a part of the land/resource you acquired after trading.
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If a case is unsuccessful, the litigant does not have to repay the litigation financing company. The latter takes responsibility for the case failure and manages investment on their hand.
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The percentage of proceeds the financing company receives varies but is often 20-40% of the settlement amount. This is how they earn their return on investment.
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Litigation financing is helpful for a variety of civil cases. These include personal injury, breach of contract, employment discrimination, etc. It is less common in criminal or family law cases.
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The litigant retains control over their case and can still accept or reject any settlements offered. The financing company does not make legal strategy decisions.
Yet you would be curious about how it will benefit you as an investor, so let's dig into the details.
Significance of Litigation Finance for Investors
Litigation financing is potentially an attractive investment opportunity for investors expecting huge profits and ready to undertake risks.
Let's check each of them singly:
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Increased ROI - Successful litigation financing investments provide better returns. These range from 20% to even 100% in the long run. Besides, depending on the settlement, the returns can be better.
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Uncorrelated returns and Unaffected From Markets- Litigation financing returns are not tied to market performance. The outcomes depend on the merits of the legal cases, not broader economic activities like GDP, recession, lay-offs, and global disruptions. This makes it an uncorrelated asset class that provides diversification.
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Ability To Invest With Lower Capitals: Litigation Financing companies allow you to invest $10000 as well.
However, unlike every other investment option, there are plenty of things you should know. One of them is Complexity. Litigation Financing requires deep legal expertise to assess the merits of cases and the probability of success. We, Investors, rely heavily on the diligence of the financing firms.
Moreover, there are limited market data reports available compared to conventional stocks and bonds. Due to this, the risks are higher as it is always unpredictable whether the case will be successful or lost, leading to financial trouble. Therefore, invest the amount that you can afford to lose.
Regarding returns and assets, Litigation Financing is a good sphere to walk in with better assets and ROI. However, it needs a thorough analysis of success, statistics, and risks. Hence, choosing an experienced form like Hedonova helps.
How Does Hedonova Work With Litigation Financing?
Hedonova provides funding to law firms to enable them to take on more commercial litigation cases on a no-win, no-fee basis. In exchange, Hedonova receives a portion of the settlement money if the case succeeds. This aligns with incentives for law firms to take on strong cases. Further, if successful, then firms get money/assets, which later get transferred to the respective investor.
Simply put, Litigation financing helps expand access to justice by funding cases with merit but lack upfront capital. Here's where Hedonova helps you with an in-depth Geographic, Sector, and process.
Thus, strategically, Hedonova focuses on commonwealth countries. These include Australia, India, and the UK since it have established litigation financing markets. Further, the investment firm targets healthcare, hospitality, and oil/gas projects where disputes are common.
To begin with, Hedonova performs extensive due diligence on the merits of each case and projected settlement ranges. If the experts find cases with high probabilities of success which would be beneficial if funded, they go for it.
Below-mentioned are some highlights of Litigation Financing with Hedonova:
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Experts diversify investment portfolios across multiple cases to mitigate risk. Hence, no single case represents over 5% of the portfolio.
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Hedonova closely monitors case progress and strategy. Further, even law firms maintain complete control over case management. It involves dedicated legal experts to provide oversight and risk management.
Benefits of Investing In Litigation Finance with Hedonova
There are several benefits to investing in Litigation Financing with Hedonova. This includes lower risk, suitability for amateurs, and the ability to invest with lower capital.
The main benefits are given below:
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Litigation financing provides high returns potential in the range of 20-50% IRR
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Hedonova offers diversification as returns are uncorrelated to mainstream asset classes.
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A shorter investment duration of 1-3 years allows you to recycle capital.
Hence, it's advantageous to choose the expert team at Hedonova. But you would be thinking whether the firm is legitimate or not. The below section has got you covered!
Why Invest In Litigation Financing With Hedonova?
Hedonova is an SEC-registered investment firm that provides easy access to various alternative asset classes beyond stocks and bonds. Hedonova offers investment opportunities in litigation finance, art, wine, startups, carbon credits, and other tangible assets.
Thus, its experts let investors invest in a wide range of alternative assets that diversify their portfolio, and investors can choose the most fruitful. Further, it constructs diversified portfolios uncorrelated to mainstream equity markets. In case of liquidity or change, you don't have to wait much or look for a longer investment cycle.
Moreover, the investment firm's success is apt because it delivered a strong historical performance with a 52.01% IRR and 55.51% CAGR since its beginning.
The minimum to invest with Hedonova is $5,000, and thus, alternative investments like Litigation Financing are achievable for more individual investors. Investors benefit from tax-optimized returns, easy online withdrawals, portfolio monitoring tools, and dedicated team support.
Though it has achieved success in the past, its experts are continually scaling investor's ROI to new heights. Even in 2022, the firm won an accolade, proving it is the best alternative investment firm for Litigation Finance.
The Bottom Line
Litigation Finance option as an investor is no less than a golden chance as you help someone else with litigation and earn a considerable stake in the given asset. But do consider it risks as well. The option has less transparency, needs greater expertise, and, like any other investment, has a risk associate.
Here's where Litigation Financing with Hedonova is a blessing in disguise, as their experts find out the most profitable ones that diversify your litigation investments across different sectors to minimize risk.
So what are you waiting for? Do consult a Hedonova expert today!
Source: Story.KISSPR.com
Release ID: 861148