‘Ottawa’ The Gavel Gamble: Litigation Emerges as an Asset Class
For years, the profits that have emerged from the opaque world of law have been beyond the reach of non-lawyers in Canada.
But that is changing quickly. A recent ruling in Ontario has helped swing open the door for litigation investment funds — which allow investors to bankroll lawsuits in the hopes of sharing in the potential proceeds — to establish a beachhead in Canada.
At the more gilded end of the spectrum, three Toronto-based asset managers are setting up Balmoral Wood, a fund that aims to distribute money from sophisticated investors across a range of established litigation finance firms already operating around the globe. And at the retail end of the spectrum, an Australian-based litigation funder listed on the Australian Stock Exchange, IMF Bentham Ltd., has also set up shop in Canada.