Claim as an Asset

For some time now, commercial claims have been akin to other assets. They can be valued, and perceived as an asset. Today, the perception has grown to the extent that claims are beginning to be viewed as another asset class. They can, in many ways, be bought, sold, pledged, bargained for, and otherwise treated like other assets, such as a share of stock.

A market is growing around this asset class, as awareness of the asset class grows. Claimants in financial need are seeking funding. Claimants who are not in financial need but can well afford to prosecute their Claim, are growing as a community who opt for financing because of a number of advantages it holds. Defendants who are the victims of poor claims can now also seek financing.

Around this market, an industry is defining itself. Institutions are being formed where investors commit capital to be invested in prosecuting claims that are valuable but where the owner does not have the money to prosecute. In addition, hedge funds, private equity entities, family offices, high net worth individuals, and others are making such investments on a case-by-case basis.