A Valuation Framework for Litigation Finance Assets

Houlihan Lokey’s Portfolio Valuation and Fund Advisory Services team is pleased to present its white paper on third-party litigation finance (TPLF) assets. 

TPLF is a growing asset class. Estimating the fair value of TPLF assets can be difficult due to the lack of publicly traded comparables and the bespoke nature of individual litigation claims. The valuation of these assets can be extremely complex. This white paper provides a framework that could be useful when valuing single-case, equity-like TPLF assets under ASC 820 for financial reporting purposes and should not be viewed as guidance on the valuation of these assets for any other purpose. To discuss this topic in further detail, please reach out to the Houlihan Lokey representative listed below.