Increasingly, funds that specialize in purchasing distressed credit have been looking to litigation funding as a potential new investment opportunity.  This novel area of finance provides commercial plaintiffs and law firms with the capital to prosecute complex claims, and can reap large rewards for the litigation funder if the litigation is successful.  Investment returns are uncorrelated with other asset classes, which makes this investment category very attractive to alternative lenders and multi-strategy funds looking to build diversified investment portfolios. But new investors need to understand that litigation finance can be complex, and presents unique legal and business risks that are distinct from those associated with more traditional areas of investment.  LSTA members joined us for this afternoon CLE program where speakers explained some of the more critical risks that arise in litigation funding and described strategies that can mitigate these risks.