- Introduction
- Study Objective
- Scope of the Report
- Study Assumptions and Abbreviations
- Research Methodology
- Secondary Research
- Primary Research
- Data Triangulation
- Client-specific Requirements and Tailored Solutions
- Executive Summary
- Executive Summary
- Strategic Imperative
- Outcome: Actionable Insights
- Global Economic Outlook
- World Economic and Risk Outlook for 2024
- World Debt 2023
- World Trade: Imports and Exports
- Regional Outlook
- Developed Economies
- Economies in Transition
- Developing Economies
- Global Industry Overview
- Global Overview
- Industry Supply Chain Analysis
- DROT
- Drivers
- Restraints
- Opportunities
- Trends
- Government Regulation: How they would Aid the Business?
- Use Case Analysis
- Industry Risk Assessment
- GROWTH OUTLOOK
- Industry Supply Chain Analysis
- Competitive Landscape
- Competitive Landscape
- Company Profile
- Burford Capital LLC
- Omni Bridgeway
- Therium Group Holdings Limited
- GLS Capital
- Validity Finance, LLC
- Parabellum Capital LLC
- Others
- Outlook and Projections
- Market Outlook and Projections
- Global Segmentation (USD Million), 2024-2037, By
- Type
- Organization Size
- End-User
- Region
- Cross Analysis
- North America Market
- Overview
- Market Value (USD Million), Current and Future Projections, 2024-2037
- Increment USD Opportunity Assessment, 2024-2037
- Year-on-Year Growth Forecast (%)
- Segmentation (USD Million), 2024-2037, By
- Type
- Organization Size
- End-User
- Country Level Analysis
- US
- Canada
- Overview
- US Market
- Overview
- Market Value (USD Million), Current and Future Projections, 2024-2037
- Increment USD Opportunity Assessment, 2024-2037
- Year-on-Year Growth Forecast (%)
- Segmentation (USD Million), 2024-2037, By
- Type
- Organization Size
- End-User
- Overview
- About Research Nester
Global Litigation Funding Investment Market Size, Forecast, and Trend Highlights Over 2025-2037
Litigation Funding Investment Market size is projected to increase from USD 17.5 billion to USD 67.2 billion, reflecting a CAGR of over 11.1% during the forecast period, from 2025 to 2037. In the year 2025, the industry size of litigation funding investment is estimated at USD 18.9 billion.
The global market is rapidly expanding owing to rising awareness about the advantages of litigation funding, catering to business contract disputes, intellectual property cases, and fraud-related lawsuits. Thus, small and medium enterprises and large corporations are investing in deploying litigation funding solutions. Several industry giants are steadily recognizing the potential of litigation funding as an alternative investment source. For instance, LexShares introduced LexShares Marketplace Fund II in 2020. This is a dedicated litigation finance fund with a target size of around USD 100 million. Another example is FightRight Technologies, an Indian startup with launched a Rs.100 crore fund targeting high-net-worth individuals interested in investing commercial legal cases.
Governments have also engaged in litigation funding, particularly in cases involving significant public interest or substantial financial implications. For instance, in the UK, this funding has supported significant cases such as the sub-postmaster’s fight against the Post Office or various equal pay and consumer right claims. This is also expected to fuel the demand for litigation funding investments.
Litigation Funding Investment Sector: Growth Drivers and Challenges
Growth Drivers
- Growing legal disputes: The rise in legal conflicts such as complicated economic issues, intellectual property problems, and large-scale class action litigation has resulted in increasing litigation funding investments. According to the statistics by U.S. District Courts, the total number of legal disputes rose by 24% in 2023. These complex commercial disputes require high capital income, making third-party funding attractive. Litigation funders provide capital in exchange for a share of the settlement. Several companies are increasingly using litigation financing to pursue meritorious claims without straining cash flows.
- Surging litigation funding by the number of litigate funders: In January 2024, Parabellum Capital, divided off from Credit Suisse 12 years ago, closed on a USD 754 million fund which is probably the most substantial private pool boosted for lawsuit financing. Further, more funding has been made by several nations which is additionally projected to dominate the litigation funding investment market expansion. For investors, lawsuit funding presents a possibility for diversification in their portfolio. Unlike standard stock-market expenditures, lawsuit funding features a unique risk-reward profile. This enables investors to distribute their risk and maybe improve their overall return.
Challenges
- Rising threat of cyberattacks: Cyber threats present a risk to the litigation funding company by creating unpredictability and perhaps weakening trust. Hackers target the funder’s database to steal case-sensitive data and information such as plaintiff strategies, settlement terms, or funding agreements. Moreover, cybercriminals can encrypt case files and demand ransom to restore access.
- Unclear regulations & rising demand for transparency: Major jurisdictions lack clear regulations which can make compliance complicated. Many countries such as Singapore or Ireland prohibit third-party litigation funding, while countries like the U.S. have stricter disclosure requirements. Similar limitations are being enacted around the world and the growing demand for transparency is projected to result in a significant impact on industry growth.
Litigation Funding Investment Market: Key Insights
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
11.1% |
|
Base Year Market Size (2024) |
USD 17.5 billion |
|
Forecast Year Market Size (2037) |
USD 67.2 billion |
|
Regional Scope |
|
Litigation Funding Investment Segmentation
End user (BFSI, Healthcare, IT & Telecommunication, Media & Entertainment, Consumer Electronics, Others)
The BFSI segment in litigation funding investment market is expected to register significant revenue growth between 2025 and 2037 owing to increasing financial and regulatory disputes and rising cases of bankruptcies. According to the estimation of the Administrative Office of the U.S. Courts, annual bankruptcy filings reached 452,990 in December 2023, in contrast with 387,721 cases in the year 2022. Therefore, banking & finance litigations could provide preference claims that arise out of bankruptcy proceedings. In addition, the BFSI sector frequently engages in contract disputes, loan defaults, and debt recovery cases, leading to more companies seeking third party litigation financing.
Organization Size (Small & Medium Enterprises, Large Enterprises)
The large enterprises segment in litigation funding investment market is expected to experience a significant rise in its revenue over the coming years. Large enterprises are frequently vulnerable to large-scale conflicts, demanding significant expenditure. In addition, the availability of huge financial resources from large organizations for litigation finance expenditure is an important factor that fuels the segment growth. In addition, the growing regulatory clarity on litigation funding has encouraged large enterprises and corporations to integrate it into legal strategies.
Our in-depth analysis of the global litigation funding investment market includes the following segments:
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Type |
|
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Organization Size |
|
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End user |
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Customize this ReportLitigation Funding Investment Industry - Regional Synopsis
North America Market Statistics
North America litigation funding investment market is expected to dominate the global market between 2025 and 2037 owing to increasing expenses associated with legal proceedings, rising complexity in legal cases, and rapid advancements in litigation funding investment solutions. North America has a robust presence of leading financial giants and litigation firms. In addition, many startups and smaller investors are using funding to take large corporations in patent disputes. This is expected to boost the demand for litigation funding investments.
The U.S. litigation funding investment market is one of the largest in the world, driven by rising legal costs, a rapidly evolving legal and regulatory landscape, strong investor interest, and rapid advancements in legal technology. One of the key investments in the market is the launch of a new litigation funding firm by Arcadia Finance in June 2024. The company plans to offer customized financial solutions and empower clients and partners to achieve their legal goals.
Asia Pacific Market
Asia Pacific in litigation funding investment market is expected to register rapid revenue CAGR during the forecast period owing to the increasing complexity of legal proceedings, growing awareness about litigation funding, and supportive legal frameworks in several countries in APAC. The litigation funders in the region are diversifying their portfolios to include various types of cases such as international arbitration, intellectual property disputes, and insolvency proceedings. This is expected to broaden the market’s scope and appeal in the coming years.
The litigation funding investment market in India is expanding due to rapid economic development and rising adoption of advanced technologies such as AI, ML, IoT, and data analytics in legal processes to enhance the efficiency of case assessments and risk management. Moreover, Indian jurisprudence is steadily developing in favor of third-party funding, fueling market growth. Several key players are also investing in R&D activities to cater to the rising demand. For instance, LegalPay, India’s first litigation funder and legal solutions provider announced the launch of a zero-interest credit line for startups, enterprises, and individual business owners to settle legal disputes and preserve their working capital.
Companies Dominating the Litigation Funding Investment Market
- Burford Capital LLC
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Omni Bridgeway
- Therium Group Holdings Limited
- GLS Capital
- Validity Finance, LLC
- Parabellum Capital LLC
The litigation funding investment market is set to have influence owing to the presence of several key players who are launching various services to expand in the competitive market. The market landscape is shaped by several strategic initiatives including capitalization on government incentives, new product launches, collaborations, and R&D. The rising focus on environmental sustainability, has facilitated the development of technologies. Here is a list of key players operating in the global litigation funding investment market:
In the News
- In May 2024, Burford Capital announced new independent research examining the way CFOs and senior financial officers have an impact on corporate legal departments, legal spending, and the success of the company in recovering value through affirmative recoveries.
- In April 2023, Validity Finance announced that it allocated a B Corporation (B Corp) certificate. This recognition acknowledges accountability of Validity to its stakeholders, which include employees, clients, investors, and the communities in which it operates.
Author Credits: Parul Atri
- Report ID: 2800
- Published Date: Feb 20, 2025
- Report Format: PDF, PPT
