March 23, 2026 For investors

Investing has been evolving rapidly in recent years. Alongside traditional assets such as stocks, gold, or cryptocurrencies, more and more investors are exploring new types of investments that are not directly dependent on financial market performance. One of the most interesting trends of the past decade is litigation finance. On the Czech platform Bondster, investors have the opportunity to participate in this segment through NERA Capital, one of the pioneers in this field.

Litigation finance works relatively simply. A specialized company provides funding to law firms representing clients in disputes against large corporations or institutions. These funds cover the costs of legal proceedings – such as legal services, expert opinions, or administrative expenses. If the case is successful and results in a financial settlement, part of the compensation is used to repay the funding and generate returns for investors. This model allows individuals or smaller companies to pursue justice even in cases where they otherwise could not afford costly legal proceedings. At the same time, it creates an attractive investment opportunity.

Why litigation finance is attractive for investors

The main advantage of this type of investment is its low correlation with traditional financial markets. The outcome of a legal dispute is not directly dependent on stock indices, inflation, or geopolitical developments. This means that returns are not tied to stock market performance, commodity prices such as gold, or the extreme volatility of cryptocurrencies. Especially in times of uncertainty on financial markets, for example due to conflicts in the Middle East, litigation finance can be an interesting addition to an investment portfolio.

How NERA Capital selecs cases

Founded in 2011, NERA Capital focuses on jurisdictions based on precedent law – such as the United States, the United Kingdom, and the Netherlands. In these legal systems, previous court decisions significantly influence rulings in similar future cases. If a court decides a certain type of dispute in one direction, it is highly likely to rule similarly in comparable cases. NERA Capital focuses precisely on such situations – identifying cases where strong legal precedents already exist, which can significantly increase predictability. The company primarily specializes in class actions, consumer claims, and competition law violations with a high probability of success.

“Typically, these are cases where a regulatory or legal decision has already confirmed unlawful conduct – for example cartel agreements or financial fraud. This significantly reduces litigation risk, leaving the amount of compensation and the duration of proceedings as the key variables,” says David Jukl, Managing Director of Bondster. The company also uses its own case management and monitoring systems and cooperates with reputable law firms.

Strong growth of the sector

Litigation finance has experienced rapid growth in recent years and is attracting an increasing number of institutional investors. NERA Capital, for example, recently secured a new investment mandate worth £50 million, confirming growing investor confidence in this asset class. The capital will be used to fund additional cases and manage a portfolio of legal claims. Over the long term, the company has financed hundreds of thousands of cases and built a robust portfolio with a potential value in the billions of pounds. The total amount paid out to investors has already reached approximately $195 million globally, demonstrating the stability of this investment model.

Portfolio diversification in uncertain times

Years of geopolitical tension, inflation, and stock market volatility highlight the importance of diversification. In addition to stocks, bonds, and commodities, more investors are including alternative assets that are not directly dependent on market developments. Litigation finance is one of them. Investing in legal claims can therefore be an attractive addition to a portfolio – especially for investors seeking new sources of return and looking to diversify beyond traditional financial instruments.

Case study: How funding helped deliver justice

Real-life examples show how litigation finance can make a tangible impact. In one case supported by NERA Capital, a single mother from Canterbury, UK, lived with her children for more than two years in unsafe and deteriorating council housing conditions. The property suffered from structural instability, cracks in the walls, rotting ceilings, and toxic mould that negatively affected the family’s health, including asthma suffered by both the mother and her son. Despite repeated complaints, the issues remained unresolved for a long time.

Thanks to funding, she was able to initiate legal action, obtain expert reports, and pursue her rights without bearing the high legal costs. The case was resolved within approximately six months through an out-of-court settlement, under which she received compensation of nearly £12,000 and the property issues were addressed. This case demonstrates that litigation finance is not only an investment opportunity but also a tool that enables people to seek justice in situations where it would otherwise be financially inaccessible.

Invest in justice on Bondster

On the Bondster platform, investors can participate in litigation finance through loans provided by NERA Capital. The average investment ticket size on the platform is approximately CZK 22,000 (EUR 920). Investors can fund an entire ticket individually or participate alongside others. This makes it possible to start investing from as little as CZK 100 or EUR 5, allowing even smaller investors to participate and easily diversify their portfolios. This model offers a fixed annual return of 14% while enabling investors to support cases that help individuals and businesses seek justice. Investing can therefore have not only a financial but also a social impact.

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Author: Bondster

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