Litigation Funding Sees Continued Growth in UK Market

Financial Times Reports More Law Firms Are Linking with Funders

According to the Financial Times, more law firms in the United Kingdom are “forging links” with litigation funding following a growing trend in the United States. As reported by the Times, law firms are even setting up their own litigation financing units.

What Is Litigation Funding?

Litigation funding provides financing for a case or portfolio of cases. The financial backing allows law firms to withstand costly litigation. If successful, the law firm pays the litigation funder back an agreed-upon return through the ultimate verdict or settlement.

The industry has seen exponential growth in the United States and other markets across the globe. The U.K. is only the latest to have law firms join ranks with third-party lenders to offset the enormous costs of litigation. Some firms are even bringing the funding in-house.

Why Investors Are Drawn to Litigation Funding

Litigation funders are drawing in huge investments from some of the most prominent players in the game. Investors are drawn to the fact that litigation funding seems to be able to withstand market pressures, often thriving in times of economic downturn.

Catching Up to the U.S.

The Times notes that litigation funding was initially slow to catch up to the meteoric rise that occurred in the states. It points to the fact that attorneys in the U.S. have long been able to take cases on a contingency fee basis meaning the client pays no fees unless the lawyer recovers money on their behalf.

In the U.K., it was not until 2013 that lawyers were able to “profit from damages-based agreements (DBA)” and “take a share of a clients’ winnings.” Litigation funding further helps these law firms take on more cases by covering upfront costs and necessary capital.

Leveling the Playing Field

As many law firms in the U.S. have discovered, third-party funding helps to level the playing field. It allows more valid claims to be heard in court and allows law firms to fully litigate cases without financial hardship.

Ultimately, litigation financing provides equal access to justice, removing the advantage from the party with the deepest pockets.

Want More? Contact Amicus Today!

Interested in learning more about litigation funding around the world? Contact Amicus Capital Group. We have been Transforming the Business of Law™ for over two decades. 

We provide financial and business solutions for law firms of every size, including business consulting, new client acquisition, growth and profitability analysis, line of credit law firm loans, commercial litigation loans, and more. Call 877.926.4287 to get started.

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