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Contribution Details

Type Master's Thesis
Scope Discipline-based scholarship
Title Third-Party Litigation Finance and its Impact
Organization Unit
Authors
  • Selina Ott
Supervisors
  • Julian Kölbel
  • Marc Chesney
Language
  • English
Institution University of Zurich
Faculty Faculty of Business, Economics and Informatics
Date 2022
Abstract Text The aim of this master’s thesis is to highlight the highly debated asset class of third-party litigation finance and its impact. Different authors have presented contradicting opinions involving positive and negative arguments regarding the social impact of this asset class. This master’s thesis investigates the quantitative investor impact of litigation finance. Recent definition on investor impact assist to identify that an investment in third-party litigation finance provides capital allocation to an undersupplied market and helps firms and individuals to access justice. To quantify the impact generated each underlying position of two European litigation finance funds are assessed. By means of a binary system each position is evaluated according to its likelihood of being litigated in the absence of an external funder. The realised claim value from cases which can only be funded with the external capital represents the impact generated. With the investor funding of the two funds, a total realized claim value of more than EUR 800 million was achieved, representing the impact generated. Even if the data justifies impact return, the extent to which the funder is altruistically motivated remains unclear.
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