Global Litigation Funding Investment Market Trends and Forecasts, 2018-2023 and 2023-2028: Rise of Non-Recourse Financing, Increased Transparency and Regulation, Diverse Funding Sources Gaining Pace
Dublin, April 25, 2024 (GLOBE NEWSWIRE) -- The "Litigation Funding Investment Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028F" report has been added to * ResearchAndMarkets.com's* offering.
The Global Litigation Funding Investment Market was valued at USD 18.2 Billion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 13.2% through 2028.
The global litigation funding investment has witnessed a significant surge, reflecting a dynamic shift in the legal and financial landscape. Litigation funding involves third-party financing for legal proceedings, enabling plaintiffs to pursue claims without shouldering the full financial burden. This industry has experienced robust growth as investors recognize its potential for lucrative returns.
Traditionally, litigation was funded by the parties involved or through law firms. However, the rise of litigation funding firms has transformed the landscape, attracting institutional investors, hedge funds, and private equity firms. This influx of capital allows litigants to access resources necessary for pursuing complex and costly legal battles.
The appeal of litigation funding lies in its potential for substantial returns. Investors typically receive a portion of the settlement or judgment if the case is successful. The growing acceptance of litigation finance as a legitimate asset class has fueled the development of specialized funds and platforms dedicated to connecting investors with viable legal cases.
This trend is particularly pronounced in regions like the United States, Europe, and Australia, where regulatory environments have become more favorable. As legal costs continue to rise, litigation funding serves as a strategic financial tool for both corporations and individuals, reshaping the dynamics of legal proceedings and creating new opportunities for savvy investors in the global financial landscape.
*Increasing Market Sophistication*
One prominent trend in litigation funding is the increasing sophistication of the market. As the industry has grown, participants have become more skilled at identifying promising cases, conducting due diligence, and structuring funding arrangements. This maturity has led to better risk assessment and more efficient allocation of capital.
In particular, litigation finance firms are using advanced data analytics and artificial intelligence to evaluate potential cases more effectively. These tools help assess the merits of a case, estimate potential damages, and predict the likelihood of success. Such data-driven approaches enhance decision-making and improve the overall performance of litigation funders.
Moreover, the industry is witnessing the emergence of specialized litigation finance firms that focus on specific areas of law, such as intellectual property, antitrust, or international arbitration. This specialization allows funders to develop deep expertise in particular legal domains, further increasing their ability to identify and assess investment opportunities.
*Expanding Geographic Reach*
Another notable trend is the expanding geographic reach of litigation funding. While the industry initially took root in common law jurisdictions like the United States, the United Kingdom, and Australia, it has now spread to civil law countries and regions worldwide.
As businesses and individuals in different parts of the world recognize the benefits of litigation finance, demand for funding has surged. This trend is particularly pronounced in Europe and Asia, where regulatory frameworks are becoming more conducive to litigation funding.
Additionally, cross-border disputes and international arbitration cases are fueling the globalization of litigation finance. Funders are increasingly participating in cases that span multiple jurisdictions, contributing to the industry's global reach.
*Diverse Funding Sources*
The landscape of litigation funding has become increasingly diverse in terms of funding sources. While specialized litigation finance firms continue to play a significant role, institutional investors and alternative capital providers have entered the market in greater numbers.
Institutional investors, including pension funds, hedge funds, and private equity firms, are attracted to litigation finance as an alternative asset class that offers uncorrelated returns with traditional investments. These large-scale investors are contributing substantial capital to the industry, leading to larger fund sizes and more significant investments.
Furthermore, crowdfunding and online platforms have emerged as alternative means of financing legal cases. These platforms allow individual investors to participate in litigation funding by contributing smaller amounts of capital to a pool of cases. This democratization of funding sources has expanded access to litigation finance for a broader range of investors.
*Portfolio Diversification*
Portfolio diversification is becoming increasingly important for both litigation finance firms and investors. Traditionally, litigation funders focused on funding individual cases. However, many are now adopting portfolio strategies, where they invest in a diversified range of cases to spread risk and enhance returns.
*Increased Transparency and Regulation*
Transparency and regulation have become increasingly important in the litigation funding industry. As the industry has grown, regulators and legal authorities have taken steps to establish clearer guidelines and ensure ethical conduct. In jurisdictions like the United Kingdom, Australia, and Singapore, regulatory bodies have introduced codes of conduct and disclosure requirements for litigation funders. These regulations aim to enhance transparency, protect the interests of litigants, and maintain the integrity of the legal system.
*Rise of Non-Recourse Financing*
Non-recourse financing is gaining traction in the litigation funding industry. This financing model allows litigants to access funding without personal liability for repayment if the case is unsuccessful. Instead, the funder bears the risk of losing the investment. Non-recourse financing appeals to a wide range of litigants, particularly those with limited financial resources or businesses seeking to manage litigation costs. It provides litigants with the peace of mind that they will not face adverse financial consequences if their case is unsuccessful.
*Key Attributes:*
*Report Attribute* *Details*
No. of Pages 177
Forecast Period 2023 - 2028
Estimated Market Value (USD) in 2023 $18.2 Billion
Forecasted Market Value (USD) by 2028 $37.5 Billion
Compound Annual Growth Rate 13.2%
Regions Covered Global
*Competitive Landscape*
Company Profiles: Detailed analysis of the major companies present in the Global Litigation Funding Investment Market.
· Parabellum Capital
· Bentham Capital
· Juridica Brickell Key
· Burford Capital LLC
· Woodford Litigation Funding Ltd
· Apex Litigation Finance
· Omni Bridgeway
· Vannin
· Augusta Ventures
· Longford Capital Management LP
*Report Scope:*
*Litigation Funding Investment Market, By Type:*
· Commercial Litigation
· Bankruptcy Claim
· International Arbitration
· Personal Injury
*Litigation Funding Investment Market, By Enterprise Size:*
· Micro, Small and Medium Enterprises (MSMEs)
· Large Enterprises
*Litigation Funding Investment Market, By End User:*
· Banking
· Media & Entertainment
· IT & Communication
· Manufacturing
· Healthcare
· Others
*Litigation Funding Investment Market, By Region:*
· North America
· United States
· Canada
· Mexico
· Europe
· France
· United Kingdom
· Italy
· Germany
· Spain
· Asia-Pacific
· China
· India
· Japan
· Australia
· South Korea
· Indonesia
· Middle East & Africa
· South Africa
· Saudi Arabia
· UAE
· Turkey
· South America
· Argentina
· Colombia
· Brazil
For more information about this report visit https://www.researchandmarkets.com/r/vfl28a
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*Attachment*
· Global Litigation Funding Investment Market
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