The litigation funding market developed initially in the UK, Australia and USA where legislative changes and developments in the interpretation of the law from the early 2000’s gave potential funders confidence that their financing agreements would be respected by the courts.

• Litigation finance is a rapidly growing asset class:

  • According to the Litigation Finance Journal, as at 2020, the implied market capacity in the three major markets for litigation funding was $10 billion in the US, £2 billion in the UK and AUD 1 billion in Australia

  • According to Wellfleet Advisors, as at the end of 2020, there were 46 significant litigation funders active in the U.S.  market alone
    

• Litigation finance is largely uncorrelated to other asset classes
  

• While there is currently no organized secondary trading market for litigation finance assets, participations in such assets are currently sold on a bilateral basis
  

• Litigation finance is not yet a mature asset class, but the maturation process is starting