FAQs
Frequently Asked Questions.
What is litigation funding, and how does it work?
Who can benefit from Nera Capital’s funding solutions?
Nera Capital’s funding solutions are designed to support a wide range of stakeholders in the litigation ecosystem. The key beneficiaries include:
- Law Firms: We provide funding to law firms pursuing high-merit claims on behalf of clients. This enables firms to scale, manage cash flow, and pursue cases without the financial strain of upfront costs.
- Individual Claimants and Small Businesses: While we do not fund individuals directly, our financing allows law firms to represent consumers and small businesses seeking justice—often against large corporations or public institutions—by covering legal expenses and disbursements.
- Institutional Investors: Nera offers structured investment products that provide access to a high-yield, uncorrelated asset class backed by legal claims. This appeals to institutions seeking diversified returns with meaningful societal impact.
- Family Offices & High-Net-Worth Investors: Traditionally, litigation finance has been reserved for institutional capital. Through Nera Capital, Family Offices and HNW investors can now access this exclusive asset class—offering them an opportunity to participate in a market that has typically been out of reach, with institutional-grade structures and risk protections in place
Nera Capital empowers justice by removing financial barriers to litigation, enabling law firms to act for those who might otherwise be left without representation, while also offering investors a compelling and impact-driven opportunity.
What types of claims does Nera Capital fund?
Nera Capital provides funding to law firms for high-merit, granular consumer claims that are cyclical – claims that have consistently prevailed under similar legal circumstances. These are cases that are both legally and economically sound, often supported by robust legal documentation and expert reports, and insurance backing where required (such as ATE insurance).
In addition to consumer litigation, Nera Capital also funds commercial claims, particularly those underpinned by strong legal precedent. This includes complex areas such as cartel and anti-trust claims, where there is a clear basis for recovery and a high chance of successful resolution.
By focusing on well-vetted, insurable claims with proven legal foundations, Nera Capital helps law firms pursue justice for their clients while offering a reliable, low-correlated asset class to investors.
What is the difference between Consumer and Commercial funding?
Consumer Litigation Funding
Who it’s for?
- Loans to law firms acting on behalf of individual claimants (consumers) or on behalf of groups of individuals.
Characteristics:
- Generally lower value per claim but often high in volume (e.g., mass claims).
- Cases tend to be more straightforward and follow established legal precedents.
- Often supported by After-the-Event (ATE) insurance to protect against adverse costs and providing capital protection on Nera’s funded disbursements.
Typical case types:
- Undisclosed Commissions (e.g. motor vehicle finance claims)
- Irresponsible Lending
- Mis-sold financial products (e.g. pensions)
- Data breaches
- Housing disrepair
- Class/group actions involving consumers
Commercial Litigation Funding
Who it’s for?
- Businesses (from SMEs to large corporations)
- Consumers
Characteristics:
- Higher-value, often complex claims.
- Involves substantial legal, financial, and commercial analysis.
- Typically bespoke funding arrangements.
Typical case types:
- Cartel or antitrust claims
Breach of contract - Shareholder or partnership disputes
- Professional negligence
What makes Nera Capital different from other legal funders?
Nera Capital stands out in the litigation funding space due to its exclusive focus on high-merit, post-settlement consumer and commercial claims. Founded in 2011, Nera is one of the pioneers in law firm lending, providing tailored funding solutions secured against individual claims. Unlike many funders, Nera does not fund claimants directly, but works exclusively with regulated law firms, ensuring legal and financial compliance at every step.
Nera’s approach is data-driven, using proprietary claims management software to monitor risk, track progress, and optimize outcomes. Each claim is rigorously assessed both legally and economically, with a strong focus on repeatable case types that are supported by legal precedent and often protected by insurance.
Additionally, Nera’s funding model has been structured to meet the requirements of institutional investors, offering transparency, risk mitigation, and attractive returns. Its long-standing track record of repayments (over $100 million returned to investors in under three years) demonstrates operational strength and investor confidence.
This combination of deep sector expertise, robust underwriting, secure legal structures, and investor-focused design sets Nera Capital apart from traditional litigation funders.
Does Nera Capital operate internationally?
Yes, Nera Capital operates internationally.
While headquartered in Ireland, Nera Capital provides funding to law firms in multiple jurisdictions where common law and judicial precedent are applied. This includes the UK, Ireland, the United States, Germany, Spain, Portugal and the Netherlands. Nera focuses on markets with strong legal frameworks that support consumer protection and commercial litigation, allowing it to fund claims with a high likelihood of success across borders.
By working with reputable law firms in these regions, Nera ensures that its funding is applied consistently and effectively, supporting both consumer and commercial claims that meet rigorous legal and economic criteria.
What are Nera Capital’s core values?
Nera Capital’s core values focus on partnership and growth by supporting law firms, integrity and transparency through ethical practices, innovation and impact by improving access to justice, and collaboration and team development to foster a strong, innovative culture.
CONTACT US
Get in Touch with Nera Capital.
We’re here to assist with your legal finance needs. Whether you’re looking for funding solutions or have a general inquiry, our team is ready to help.