Litigation Funding Investment Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Commercial Litigation, Bankruptcy Claim, International Arbitration, Personal Injury), By Enterprise Size (Micro, Small and Medium Enterprises (MSMEs), Large Enterprises), By End User (Banking, Media & Entertainment, IT & Communication, Manufacturing, Healthcare, Others (Travel & Hospitality), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 27.92 Billion
CAGR (2026-2031)	13.23%
Fastest Growing Segment	Micro, Small and Medium Enterprises (MSMEs)
Largest Market	Europe
Market Size (2031)	USD 58.84 Billion

Market Overview

The Global Litigation Funding Investment Market will grow from USD 27.92 Billion in 2025 to USD 58.84 Billion by 2031 at a 13.23% CAGR. The Global Litigation Funding Investment Market is defined as a specialized financial sector where a third-party investor covers the legal costs of a dispute in exchange for a negotiated portion of the successful settlement or judgment. The market’s growth is primarily supported by the escalating expense of high-stakes litigation, which drives claimants to seek external capital to mitigate financial risk. Furthermore, the increasing recognition of legal claims as a leverageable asset class allows corporations to unlock liquidity from their litigation portfolios, providing a structural impetus for investment that exists independently of transient market trends.

However, a significant challenge that could impede market expansion is the intensifying regulatory scrutiny regarding the mandatory disclosure of funding agreements. This pressure creates uncertainty for investors concerning confidentiality and the strategic management of cases. Illustrating the sector's substantial economic scale, according to the Insurance Information Institute, in 2024, assets under management in the United States litigation funding sector were estimated at $16 billion. Such significant capital concentration highlights the financial magnitude of the industry as it navigates evolving compliance frameworks.

Key Market Drivers

Institutional recognition as an uncorrelated alternative asset class is fundamentally expanding the liquidity available within the Global Litigation Funding Investment Market. As traditional equity and fixed-income markets face volatility, institutional investors are increasingly allocating capital to litigation finance vehicles that offer returns independent of macroeconomic cycles. This structural shift has enabled major funders to secure substantial credit facilities and asset-backed financing to scale their operations globally, validating the sector's maturity beyond niche private equity circles. Illustrating this influx of institutional capital, according to Legal Funding Journal, September 2024, in the article 'Bryant Park Capital Secures $100 Million in Capital for Deminor', the global funder closed a $100 million senior credit facility with leading asset managers to expand its litigation portfolio.

Rising corporate utilization for balance sheet management is simultaneously transforming the sector from a resource for insolvent claimants into a strategic corporate finance tool. General Counsel and CFOs are actively using third-party capital to monetize legal assets, thereby removing litigation expenses from operating budgets and unlocking immediate liquidity from contingent claims. This strategic shift is heavily influenced by the soaring cost of defense and settlement; according to Swiss Re, in 2024, litigation costs drove United States liability claims up by 57% over the past decade. Consequently, corporate demand for funding solutions continues to grow to mitigate these pressures. According to Burford Capital, April 2024, in the '2024 Legal Finance Outlook', 74% of senior in-house lawyers expect to see an increase in the volume of disputes, ensuring a sustained demand for external capital.

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Key Market Challenges

The intensifying regulatory scrutiny regarding the mandatory disclosure of funding agreements stands as a critical barrier to the growth of the Global Litigation Funding Investment Market. This push for transparency fundamentally undermines the strategic anonymity that third-party investors value, as confidentiality is often essential for maintaining leverage in high-stakes disputes. When funding arrangements are forcibly disclosed, opposing counsel gains insight into a claimant’s financial backing and the terms of the investment. This intelligence allows defendants to strategically prolong litigation with the specific intent of exhausting the funded budget, thereby skewing the risk profile of the asset. Consequently, this exposure discourages capital deployment, as investors face heightened uncertainty regarding the confidentiality of their proprietary financial structures.

Furthermore, the evolving compliance landscape increases the administrative complexity and legal risk associated with structuring funding deals. This regulatory friction acts as a direct brake on market scalability, forcing investors to be more conservative in their portfolio selection. The magnitude of the economic pressure necessitating this scrutiny is evident in the broader legal landscape. According to the American Tort Reform Association, in 2024, the annual direct costs of the U.S. tort system, which is increasingly influenced by third-party litigation funding, were estimated to exceed $500 billion. This immense financial impact has accelerated legislative countermeasures, effectively constricting the operational freedom that the market requires for rapid expansion.

Key Market Trends

The integration of AI and predictive analytics for case assessment is fundamentally reshaping the Global Litigation Funding Investment Market by enhancing the precision of due diligence and risk pricing. Funders are increasingly deploying machine learning algorithms to process vast datasets of historical case law, enabling them to predict judicial outcomes and settlement values with greater granular accuracy than traditional manual review. This technological shift allows investors to rapidly screen potential assets and optimize portfolio composition based on data-driven probability models rather than solely relying on attorney intuition. Underscoring this commitment to technological advancement, according to LexisNexis, January 2024, in the 'What Every C-Suite Leader Needs to Know about Legal AI' report, 90% of surveyed legal executives expect their investment in generative AI technologies to increase over the next five years. This trend signifies a permanent move towards quantitative investment strategies that prioritize analytical efficiency.

Simultaneously, a surge in ESG-focused litigation investments is creating a high-growth sub-sector as global regulatory mandates regarding environmental and social governance tighten. Investors are actively capitalizing on the growing volume of disputes related to greenwashing, climate liability, and corporate accountability, identifying these complex, high-impact cases as a lucrative avenue for capital deployment. This trend is driven by an increasingly litigious regulatory environment that generates substantial actionable claims for third-party funders to finance, particularly in cross-border jurisdictions. Highlighting the scale of this emerging opportunity, according to Baker McKenzie, January 2024, in the 'Global Disputes Forecast 2024', 73% of senior legal and risk leaders expect ESG disputes to present the single biggest litigation risk to their organization in the year ahead. Consequently, fund managers are tailoring specific investment vehicles to capture returns from these specialized regulatory battles.

Segmental Insights

Based on prominent market research, Micro, Small and Medium Enterprises (MSMEs) have emerged as the fastest growing segment in the Global Litigation Funding Investment Market. This rapid expansion is primarily driven by the financial disparity between MSMEs and larger corporate adversaries in legal disputes. Unlike major corporations with substantial reserves, smaller enterprises often lack the internal capital to sustain prolonged litigation regarding intellectual property or contract breaches. Third-party funding provides essential non-recourse capital, enabling these businesses to pursue meritorious claims without risking operational insolvency. Consequently, MSMEs increasingly utilize litigation finance to counterbalance resource disparities and secure access to justice.

Regional Insights

Europe is recognized as a leading region in the Global Litigation Funding Investment Market, underpinned by a highly developed legal infrastructure and a favorable regulatory environment. This strong market position is primarily driven by the "loser pays" principle prevalent in the United Kingdom, which compels claimants to seek external funding to hedge against potential adverse cost orders. The region's stability is further ensured by the Association of Litigation Funders (ALF), a self-regulatory body that enforces rigorous standards for capital adequacy and ethical conduct. Additionally, the implementation of the European Union’s Directive on Representative Actions has strengthened the landscape by facilitating collective claim mechanisms, securing Europe's status as a pivotal hub for legal finance.

Recent Developments

• In October 2025, Therium announced the launch of a new independent advisory business, Therium Capital Advisors, designed to assist claimants, law firms, and corporations in securing litigation finance. Based in London, this new entity was established to offer end-to-end support services, including funding strategy, financial modeling, deal structuring, and investor engagement. The firm aimed to bridge the gap between capital seekers and institutional investors who often lacked the specific legal expertise to evaluate individual claims. This strategic product expansion allowed the company to pivot towards an advisory-based model while continuing to serve the broader global litigation funding investment market.
• In May 2025, Deminor Litigation Funding announced the successful completion of a major investment round, raising EUR 100 million to support its strategic international expansion. The proceeds were designated for growing the company's litigation portfolio across its core operational regions, including Continental Europe, the United Kingdom, and Asia. Alongside this financial milestone, the firm achieved "Certified B Corporation" status, distinguishing it as a socially responsible entity within the industry. The funding round involved participation from a diverse group of investors, such as private equity firms and family offices, reinforcing the continued resilience and attractiveness of the legal finance sector.
• In April 2025, Omni Bridgeway completed a significant secondary market transaction involving a collaboration with Ares Management Corporation, a global alternative investment manager. The investment manager acquired a 70% interest in a litigation finance fund managed by the company for approximately A$320 million. This deal established a new continuation fund which purchased co-investment interests across a diversified portfolio of legal assets, including intellectual property and contract disputes. The Chief Executive Officer of Omni Bridgeway noted that this transaction highlighted the availability of deep capital pools for well-managed legal asset portfolios and demonstrated the maturing nature of the global litigation funding investment market.
• In November 2024, Burford Capital released breakthrough research focused on the business impacts of legal challenges related to the global energy transition. The study, which surveyed general counsels and senior lawyers, highlighted that businesses were preparing for a substantial rise in expensive commercial disputes as the shift to renewable energy sources accelerated. The report emphasized the growing necessity for corporate finance solutions to manage the high costs associated with these complex legal battles. This research underscored the critical value of legal finance in allowing companies to pursue meritorious claims without depleting their internal resources during the energy transition.

Key Market Players

• 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

By Type	By Enterprise Size	By End User	By Region
Commercial Litigation Bankruptcy Claim International Arbitration Personal Injury	Micro Small and Medium Enterprises (MSMEs) Large Enterprises	Banking Media & Entertainment IT & Communication Manufacturing Healthcare Others (Travel & Hospitality)	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Litigation Funding Investment Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• 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 (Travel & Hospitality)

• 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
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE