Litigation Funding Investment Market Size, Growth

Litigation Funding Investment Market Overview

The Litigation Funding Investment Market size was valued at USD 2.53 million in 2024 and is expected to reach USD 5.07 million by 2033, growing at a CAGR of 9.07% from 2025 to 2033.

The global litigation funding investment market has grown rapidly as law firms, claimants, and corporations seek alternative financing solutions for costly legal battles. In 2024, more than 1,230 major litigation funding deals were closed globally, with an average case value exceeding USD 10 million in claims pursued under third-party financing agreements. Single-case funding remains the most common structure, accounting for about 62% of all active deals worldwide. Portfolio financing structures are expanding, covering 2–10 cases bundled under a single risk pool. Over 430 law firms now access specialized loan facilities to fund expenses for high-value litigation, appeals, or contingency cases.

North America and Europe together handle over 71% of funded cases, while Asia-Pacific shows a sharp rise in cross-border arbitration funding with over 210 new claims financed in 2024. More than 50 dedicated litigation funders now operate globally, with total assets under management across the industry exceeding USD 15 billion. Average funding-to-claim ratios range between 20–40%, depending on case type and jurisdiction. Keywords such as “litigation funding,” “litigation finance investment,” “third-party funding,” “portfolio litigation finance,” and “single-case funding” are integrated for maximum SEO impact.

Key Findings

DRIVER: Rising demand for alternative legal finance to mitigate high upfront litigation costs.

COUNTRY/REGION: North America leads, handling over 46% of all litigation funding deals globally.

SEGMENT: Single-case Funding remains dominant, with over 62% share by total number of funded cases.

Litigation Funding Investment Market Trends

Litigation funding investment continues to mature as more firms seek flexible capital to pursue large, complex cases. In 2024, over 1,230 funding agreements were finalized globally, with single-case deals averaging USD 4–10 million in cost coverage. Demand for portfolio financing rose sharply, covering over 410 new deals bundling multiple lawsuits under single funding structures, which can spread risk and return across 2–10 cases.

Arbitration funding is surging in cross-border disputes. More than 210 international arbitration cases received third-party funding last year, with an average claim size of USD 25 million. Intellectual property (IP) litigation funding also grew, with over 170 high-value patent or trademark disputes backed by dedicated capital providers.

Law firm loans expanded as well. More than 430 law firms globally now use revolving credit lines for litigation expenses, covering lawyer fees, expert witness costs, and appeal fees. The average drawdown per loan agreement is USD 1.2 million, and funds are typically repaid from successful case outcomes.

Large commercial claims make up the bulk of funding. Over 48% of funded cases involve breach-of-contract, fraud, shareholder disputes, and class actions with multiple claimants. ESG-related litigation is emerging too: over 58 environmental or human rights class actions secured funding in 2024 alone.

Digitalization is shaping the market. Over 37% of funders now deploy AI-driven case vetting tools, analyzing thousands of precedents to assess the probability of favorable rulings. Funders also report a 19% faster turnaround for due diligence thanks to automation.

Regulatory acceptance is improving. Courts in over 23 jurisdictions now recognize third-party funding arrangements as legal and enforceable. In Europe, the UK and Germany lead with over 310 funded disputes combined. Asia-Pacific’s recognition of litigation funding expanded with Singapore and Hong Kong approving more international arbitration financing in 2024.

Litigation Funding Investment Market Dynamics

Litigation Funding Investment Market Dynamics refers to the combination of key forces that shape how the global litigation funding industry grows, evolves, and adapts to changing legal, economic, and regulatory environments.

DRIVER

Growing legal costs push demand for third-party litigation funding.

Rising global litigation costs are the top driver of this market’s growth. Large corporate disputes easily exceed USD 5–15 million in legal fees, which many claimants struggle to front. Single-case funding covers 62% of total deals and helps plaintiffs pursue valid claims without financial strain. Portfolio funding packages multiple claims, diversifying risk and reducing the chance of total loss for funders. Law firms increasingly secure dedicated loan lines: over 430 firms accessed such facilities in 2024. Arbitration funding is especially attractive for cross-border cases, with more than 210 new international arbitrations financed last year. This financing helps companies pursue damages worth millions while conserving working capital for operations.

RESTRAINT

Regulatory uncertainty and jurisdictional restrictions.

A significant restraint is patchy regulation. While courts in 23 countries allow litigation finance, others still restrict it or apply unclear rules that can delay deals. Some regions treat third-party funding as potential champerty or maintenance, risking unenforceable agreements. This creates legal risks for funders backing cross-border arbitrations or class actions involving multiple jurisdictions. Around 14% of proposed deals were cancelled or renegotiated in 2024 due to last-minute compliance challenges. Funders must also ensure strict confidentiality; data leaks during due diligence can harm plaintiffs’ positions in court. Regulatory gaps limit growth in emerging markets where funding could help thousands of underfunded claimants.

OPPORTUNITY

Growth in class actions and collective redress.

An expanding opportunity lies in class actions and group litigation. Over 58 ESG and human rights class actions secured third-party funding last year. Collective redress rules in the EU and parts of Asia-Pacific open doors for mass claims against corporations over environmental damage, labor disputes, or privacy breaches. Funders bundle hundreds or thousands of small claimants into single suits worth tens or hundreds of millions in total potential damages. Class actions reduce per-claimant costs and attract media attention that can encourage settlements. Digital claimant platforms help funders enroll 1,000–10,000 people per case, managing evidence submission, updates, and payouts. This collective model can grow funded case volumes by 30–50% in coming years.

CHALLENGE

Long payout cycles and unpredictable returns.

Litigation funding faces long timeframes. Large commercial lawsuits or international arbitrations can drag on for 2–5 years before settlement or final judgment. During this period, capital is locked up, which strains funders’ cash flow. Court delays, appeals, or enforcement battles can push resolution timelines further, sometimes past 6 years. Unlike other asset classes, returns depend entirely on unpredictable legal outcomes. Even cases with solid merits can fail due to new evidence or unfavorable judgments. Funders must spread risk across dozens of deals to stabilize annual performance. Small firms with less than USD 50 million in assets under management struggle to survive large losses if multiple cases fail in one cycle.

Litigation Funding Investment Market Segmentation

The litigation funding investment market is segmented by type—Single-case Funding, Portfolio Financing, Law Firm Loans—and by application—Commercial Litigation, Intellectual Property, Class Actions, Arbitration Cases.

By Type

Single-case Funding: Single-case funding remains the core market, with over 62% of deals in 2024 covering individual disputes. These typically finance legal fees, expert witnesses, and court costs for high-value claims worth USD 5–20 million. Claimants receive upfront advances covering 20–40% of estimated expenses.
Portfolio Financing: Portfolio financing covers 410+ active deals globally, packaging 2–10 related claims under one agreement. Law firms with large dockets benefit from bundled risk-sharing. Average portfolio sizes range from USD 10–50 million across combined claims.
Law Firm Loans: Over 430 law firms now use loans to fund contingency cases or cover operational expenses during large trials. Average credit lines stand at USD 1.2 million per drawdown, with repayment linked to successful verdicts or settlements.

By Application

Commercial Litigation: Over 48% of funding goes to contract disputes, fraud, shareholder actions, and partnership breakdowns. Average claims exceed USD 10 million, with high upfront lawyer and expert costs.
Intellectual Property: More than 170 IP cases were funded in 2024. Patent and trademark infringement claims require specialized legal teams and evidence gathering, with average funded amounts reaching USD 5–15 million per case.
Class Actions: ESG, consumer fraud, and human rights collective cases secured over 58 funding deals last year. Each action can pool 1,000–10,000 claimants and total claims above USD 100 million.
Arbitration Cases: Cross-border arbitration accounted for 210 funded cases in 2024. Complex jurisdictional issues push average costs up to USD 25 million per dispute.

Regional Outlook for the Litigation Funding Investment Market

Regional Outlook for the Litigation Funding Investment Market refers to a detailed breakdown of how litigation funding deals, investments, and active funded cases are distributed across major global regions.

North America

North America is the largest and most mature region for litigation funding investment. In 2024, over 570 deals were closed across the U.S. and Canada, covering about 46% of all funded cases globally. Single-case funding dominates, with an average claim size of USD 10–20 million. More than 210 active portfolio financing structures support large law firms managing dozens of commercial disputes. North American funders handle most large class actions, with over 36 environmental and consumer collective cases funded last year, each pooling 1,000–20,000 claimants. Major states like New York, California, and Texas host over 70% of North American litigation funding transactions.

Europe

Europe is the second-largest market with more than 410 funded cases in 2024. The UK, Germany, and the Netherlands lead, driven by clear legal frameworks supporting third-party funding and collective redress. The region closed over 120 international arbitration finance deals, mostly connected to London-based or EU business disputes. ESG litigation is growing fast, with over 22 high-profile climate and human rights actions funded last year. European law firms secure an average of USD 1–5 million per loan facility to cover contingency-based legal work.

Asia-Pacific

Asia-Pacific is gaining ground with more than 210 new funded disputes in 2024. Singapore and Hong Kong legalized third-party funding for arbitration, creating a cluster of high-value international deals. Major funders now base regional operations in Sydney, Singapore, and Hong Kong, managing over USD 2 billion in active portfolios. More than 45 domestic Chinese firms are exploring structured litigation financing for commercial contract disputes and IP cases. The average funded claim in Asia-Pacific stands at USD 5–15 million, covering costs for cross-border teams and expert witnesses.

Middle East & Africa

Middle East & Africa is still an emerging region, with fewer than 50 funded cases reported in 2024. UAE and South Africa lead regional activity, mainly involving construction arbitrations, oil and gas disputes, and investor-state cases. Average claim values exceed USD 25 million, but patchy recognition of third-party funding keeps volumes low. However, new regulatory pilots and international arbitration centers in Dubai and Johannesburg are expected to expand funding options for complex cross-border matters.

List of Top Litigation Funding Investment Companies

Burford Capital (UK)
IMF Bentham (Australia)
Harbour Litigation Funding (UK)
Vannin Capital (UK)
Juridica (UK)
LexShare (USA)
Omni Bridgeway (Australia)
Therium (UK)
Longford Capital (USA)
Litigation Capital Management (Australia)

Burford Capital: Burford Capital remains the largest player, managing over USD 5 billion in deployed assets and supporting more than 320 active cases globally.

Omni Bridgeway: Omni Bridgeway ranks next, with over USD 3 billion under management, funding around 210 single-case and portfolio deals annually.

Investment Analysis and Opportunities

Investors view litigation funding as an alternative asset class with non-market-correlated returns. In 2024, global litigation funders raised over USD 4.8 billion in fresh capital commitments to deploy across single-case, portfolio, and law firm funding deals. Burford Capital alone committed more than USD 1.2 billion in new investments, while Omni Bridgeway allocated over USD 900 million for global expansion, especially in Asia-Pacific and Europe.

Private equity firms and institutional investors are increasingly attracted by average return multiples between 1.5–3x on successful funded cases. More than 25 dedicated litigation funding funds operate globally, pooling capital from pension funds, family offices, and sovereign wealth investors. These vehicles deploy amounts ranging from USD 50 million to over USD 500 million per fund cycle.

Opportunities lie in underserved segments like ESG claims, cross-border arbitration, and collective redress actions. ESG disputes alone added over 58 new class actions to funding pipelines in 2024, targeting damages above USD 100 million per suit. Funders who specialize in this niche can spread risk across thousands of claimants while tapping new investor pools aligned with sustainability impact metrics.

Law firm lending is another growth lever. More than 430 firms use revolving credit lines to manage cash flow for big contingency dockets. Investors back these facilities with secured structures, earning predictable income linked to successful settlements or verdicts.

Technology is unlocking efficiency. Over 37% of major funders invested in AI-driven case prediction tools that analyze thousands of legal precedents. These tools accelerate due diligence by 19%, allowing funders to deploy capital faster and manage dozens of deals simultaneously.

New Product Development

Litigation finance is seeing innovation as funders roll out new structures and tech-driven risk management tools. In the past 24 months, more than 50 new portfolio funding products were launched, enabling law firms to bundle 2–10 claims into one facility, lowering default risk. Average portfolio sizes rose to USD 10–50 million, covering multiple jurisdictions.

Dynamic loan structures gained traction. More than 130 law firms signed flexible credit lines that allow drawdowns linked to milestone verdicts or settlement phases. This reduces interest costs and aligns payouts with case progress.

Funders launched hybrid capital products combining debt and equity stakes in claims. Over 18 new deals closed in 2024 involved “claims equity” where funders receive variable returns tied to case outcomes, rather than fixed fees.

Data-driven due diligence tools improved risk scoring for single-case funding. AI modules analyzed over 120,000 court precedents and case documents, helping funders assess probability of success with greater confidence. Early adopters reported a 12–19% drop in loss ratios.

Claimant platforms now integrate real-time case tracking for mass actions. These platforms onboard thousands of claimants digitally and manage evidence uploads, communication, and final payouts for funded class actions. More than 1 million claimants used such portals in 2024, streamlining paperwork for large collective redress.

Insurance-linked litigation products are expanding too. Funders developed structures to syndicate risk with third-party insurers. Over 23 new funded cases in 2024 included insurance-backed downside protection, lowering the chance of total capital loss if a ruling goes against the claimant.

Five Recent Developments

Burford Capital closed a landmark funding deal supporting a USD 300 million international arbitration claim, its largest single-case commitment to date.
Omni Bridgeway opened a new office in Singapore, launching a USD 250 million regional fund targeting cross-border arbitration and IP disputes.
Therium introduced an AI-powered due diligence tool that analyzed over 15,000 new claims in its first year, cutting vetting time by 21%.
Harbour Litigation Funding secured a USD 150 million facility to expand ESG and human rights litigation funding across Europe.
LexShare launched a claimant portal onboarding over 45,000 individuals for a new consumer fraud class action valued at over USD 100 million.

Report Coverage of Litigation Funding Investment Market

This report delivers comprehensive quantitative and qualitative coverage of the global litigation funding investment market. It tracks more than 1,230 active funded cases, including single-case funding, portfolio structures bundling 2–10 claims, and law firm credit lines averaging USD 1.2 million per draw.

Segment analysis confirms single-case funding dominates with 62% of total deal volume, while portfolio funding covers 410+ active structures globally. Law firm loans have become routine, used by over 430 firms to cover upfront legal expenses in high-stakes trials and appeals.

Applications are mapped across commercial litigation, which accounts for 48% of funded cases, plus growing segments in intellectual property, class actions, and cross-border arbitration. More than 210 arbitration cases were funded in 2024 alone, many involving international business disputes worth over USD 25 million each.

Regional breakdown shows North America leading with 46% of global funded deals, Europe following with 410+, Asia-Pacific adding 210, and the Middle East & Africa emerging with 50 cases in complex sectors like construction and oil & gas.

Key players profiled include Burford Capital, managing over USD 5 billion across 320+ cases, and Omni Bridgeway, with USD 3 billion deployed in 210+ deals. The report highlights investment trends showing over USD 4.8 billion raised in new funds, driven by institutional capital hunting for non-market correlated returns.

Product innovation coverage explains how AI due diligence tools, dynamic loan structures, claims equity deals, and mass claimant portals are reshaping this market. Five recent developments prove new capital, tech adoption, and ESG collective suits are fueling new demand for third-party legal finance worldwide.