How Long Does It Take To Earn Returns?

This is a good question, and it depends on whether the case settles or requires a full arbitration or litigation.

Cases can settle at any time, so returns can be very quick if this occurs, just a matter of weeks or months. Approximately half of lawsuits in countries like the U.S. settle, although settlement is less common in countries where litigation is less expensive. It is very difficult to know whether a case might settle, but you can speak with a litigant or their lawyer as to whether there have been settlement discussions and request their views on the possibility of settlement.

Arbitrations tend to be faster than litigations since there are no appeals. The average commercial arbitration takes approximately 18 months, whereas the average investor-State arbitration takes approximately 36 months.

If there is no appeal civil litigations can be fast, but if there are multiple appeals then a case could take a long time. Whether there will be an appeal is difficult to predict in advance, but you can speak with the litigant or their lawyer as to their opinion on the case duration. Cases which are ongoing at the appellate level will normally take less time to complete.

Despite potential delays with respect to individual cases, annualized returns can be very interesting. Third-party funders like Burford have achieved annual returns of 60% on capital: http://www.forbes.com/sites/danielfisher/2015/03/18/burford-capital-cashes-in-on-other-peoples-lawsuits-in-2014/

You can invest smaller amounts in multiple cases in order to generate more regular returns.

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How Long Does It Take To Earn Returns?