What Are Litigation Notes? Explained for Investors
What Are Litigation Notes? A Simple Guide for Investors
A frequent question we get from our clients is:
“What are litigation notes? I’ve never heard of them.”
If you’re familiar with traditional fixed-income products like bonds or savings accounts, litigation notes might sound new or unusual but they’re gaining traction among sophisticated investors looking for higher yields and diversified income streams.
In this guide, we explain litigation notes in plain English, how they work, and why they’re attracting attention.
What Are Litigation Notes?
Litigation notes (also called litigation finance notes) are fixed-income investments backed by legal claims.
Instead of earning interest from a company or government, investors in litigation notes receive returns based on the outcome of legal cases — typically in commercial litigation, arbitration awards, or structured settlements.
Rather than waiting years for a legal outcome, litigation notes allow investors to acquire the right to a portion of an anticipated settlement or award, in exchange for capital now and then earn returns when the case resolves.
How Do Litigation Notes Work?
A legal claim or settlement is identified — for example, a commercial dispute with strong merit.
An investment vehicle issues notes backed by the expected payout.
Investors purchase these notes, effectively advancing capital to the case.
When the legal claim is resolved:
Investors receive fixed, pre-agreed returns
The principal is repaid along with interest
This structure creates a defined payout schedule with potential returns well above traditional fixed income while the underlying case outcomes are supported by legal expertise.
Why Investors Are Interested in Litigation Notes
Investors are increasingly looking beyond traditional fixed-income products because:
Higher yields than government or corporate bonds
Defined return timelines
Asset-backed by legal claims (not market performance)
Diversification different risk/return profile than stocks or property
Platforms like Fixed Income Investments specialise in connecting investors with these kinds of asset-backed opportunities, offering transparent documentation and structured terms.
How They Fit Into Your Portfolio
Litigation notes are not a replacement for traditional stocks, bonds, or savings — but they can be:
A strategic fixed-income component
A diversifier to standard bond portfolios
A way to target higher yield within a defined structure
By allocating part of your portfolio to structured, asset-backed fixed-income instruments like litigation notes, you enhance your diversification and return potential.
Do You Have More Questions?
We understand that alternative fixed-income investments can raise important questions — and that’s entirely natural.
That’s why every opportunity is supported by thorough due diligence, structured legal frameworks, and risk-mitigation processes designed to make each investment as secure as possible. While no investment is without risk, transparency and discipline sit at the core of our approach.
If you’d like to learn more about litigation notes and how they may fit within a diversified strategy, our team is available to talk you through the details with no obligation or commitment.
Get in touch to explore your options and start 2026 on the right path for your money.