The Latest Litigation Finance Industry Statistics Explained
By 2019, the commercial litigation finance industry grew to an estimated $9.5 billion.
The statistic indicates that by the year 2019, the commercial litigation finance industry had experienced significant growth, reaching an estimated total value of $9.5 billion. This suggests a substantial increase in the amount of funding being provided to support commercial litigation cases, where third-party investors provide capital to plaintiffs in exchange for a portion of any successful settlement or judgment. The growth of this industry could be driven by various factors, such as an increase in demand for litigation funding, evolving regulatory environments, and the growing recognition of litigation finance as a viable financial tool for both plaintiffs and law firms. The $9.5 billion figure highlights the industry’s considerable size and importance within the broader legal and financial landscape.
From 2018-2019, 30% of private practice lawyers used litigation financing, up from 25% the previous year.
The statistic indicates that in the time period from 2018 to 2019, the proportion of private practice lawyers who utilized litigation financing increased significantly. Specifically, 30% of private practice lawyers reported using litigation financing in 2019, marking a notable increase from the 25% who reported doing so in the previous year. This trend suggests a rising reliance on external funding sources to support legal cases and potentially reflects changing financial dynamics within the legal industry. The statistic highlights a noticeable shift in behavior among lawyers seeking financial assistance for litigation-related expenses, potentially pointing to the growing acceptance and utilization of litigation financing services within the legal profession.
From 2018-2019, 36% of in-house lawyers used litigation finance, up from 28% the previous year.
The statistic indicates that there was an increase in the usage of litigation finance among in-house lawyers from 28% in 2018 to 36% in 2019. This means that a larger proportion of in-house lawyers sought financial assistance for litigation expenses during the specified time frame. The 8% increase suggests a growing trend towards utilizing litigation finance as a means to manage legal costs and mitigate risks associated with litigation. This shift may be indicative of the increasing complexities and costs associated with legal disputes, prompting more in-house lawyers to explore alternative funding options to support their legal matters.
Globally, the litigation finance market was valued at $10.9 billion in 2019.
The statistic indicates that in 2019, the litigation finance market had a total value of $10.9 billion on a global scale. Litigation finance involves providing funding to plaintiffs or law firms to cover the costs associated with legal proceedings in exchange for a portion of the settlement or award. This market size signifies the substantial growth and increasing adoption of litigation finance as a financial tool for individuals and organizations to pursue legal actions without bearing the full financial burden themselves. The value of $10.9 billion highlights the significant economic activity within the litigation finance industry and suggests a growing demand for such services in the legal sector worldwide.
The annual growth rate of the litigation finance market is projected to be 8.3% from 2020 to 2027.
The statistic about the annual growth rate of the litigation finance market projected to be 8.3% from 2020 to 2027 indicates the anticipated rate at which the market is expected to expand over that time period. This growth rate suggests a steady and relatively strong increase in the size and value of the litigation finance industry. It implies that the demand for litigation finance services, which involve providing funding to parties involved in legal disputes in exchange for a portion of the settlement, is likely to rise steadily in the coming years. This projection can be valuable for investors, industry stakeholders, and policymakers to understand the anticipated trajectory of the litigation finance market and make informed decisions based on this growth expectation.
Nearly half of US law firms have used litigation finance, a proportion that doubled between 2013-2017.
The statistic indicates that a significant portion of law firms in the United States have utilized litigation finance, with the percentage increasing substantially over a four-year period from 2013 to 2017. Litigation finance involves obtaining funding from a third-party source to cover legal expenses associated with a lawsuit in exchange for a share of the potential settlement or award. The doubling of the proportion of law firms using litigation finance suggests a growing acceptance of this practice within the legal industry, likely driven by the potential benefits it offers in terms of managing costs and risks associated with litigation. This trend reflects a shift in how law firms approach financing legal cases and indicates the increasing importance of alternative funding options in the legal profession.
In 2019, new case investments totaled $2.47 billion, up from the $1.33 billion figure in 2018.
The statistic states that in 2019, the total new case investments amounted to $2.47 billion, reflecting an increase from the $1.33 billion recorded in 2018. This indicates a significant growth of $1.14 billion in new investments from one year to the next, illustrating a positive trend in the level of capital being injected into new case investments. This suggests an increased interest and confidence in these investments by individuals, businesses, or institutions in 2019 compared to the previous year. The $1.14 billion rise signals a substantial uptick in financial support for new case ventures, potentially leading to greater innovation, economic growth, and job creation within the industry.
A survey from 2020 found that over 80% of litigation finance users would use it again.
The statistic indicates that in a survey conducted in 2020, a significant majority, specifically over 80%, of litigation finance users expressed satisfaction with the service to the extent that they would choose to use it again in the future. This high percentage suggests a strong level of confidence and approval among individuals who have utilized litigation finance for funding legal expenses. The finding underscores the perceived value and benefits that users have experienced from this type of financial arrangement, indicating a high level of trust and satisfaction within this segment of the market.
Global litigation finance firms declared they had over $9.52 billion to invest in cases by 2020.
The statistic indicates that global litigation finance firms collectively have allocated a substantial amount of capital, specifically over $9.52 billion, for investment in legal cases by the year 2020. This suggests a growing trend in the legal industry where third-party funding is becoming a prominent source of financial support for litigation proceedings. Litigation finance firms typically provide funding to plaintiffs or law firms to cover the costs associated with pursuing legal actions in exchange for a portion of the settlement or judgment proceeds. The significant financial resources available to these firms reflect the increasing demand for alternative funding mechanisms in the legal sector, highlighting the importance of financial backing in accessing justice and navigating the complexities of legal disputes.
In the UK, the number of law firms using litigation financing doubled from 2013 to 2017.
The statistic indicates that there was a significant increase in the adoption of litigation financing among law firms in the UK over a four-year period, specifically from 2013 to 2017. The doubling of the number of law firms using litigation financing suggests a substantial growth and interest in this financial arrangement during the given timeframe. This trend may be indicative of a shift in the legal industry towards more innovative and flexible funding options for litigation cases, potentially driven by factors such as rising legal costs, competitive pressures, and changing client demands. The increased utilization of litigation financing by law firms highlights a significant development in the way legal services are being financed and managed in the UK.
Litigation funding was utilized by businesses in 67% of cases in 2019.
The statistic indicates that in 2019, businesses used litigation funding in 67% of cases, suggesting a prevalent practice of seeking external financial support to cover the costs associated with legal disputes. Litigation funding involves third-party financing of legal expenses in exchange for a share of any monetary awards resulting from the case. The high percentage of businesses utilizing this funding option in 2019 signals a recognition of the financial risks involved in litigation and the importance of accessing resources to pursue legal actions. This statistic highlights the strategic approach taken by businesses to manage their legal costs and potentially improve their chances of achieving favorable outcomes in disputes.
In the US, Burford Capital, a leader in the industry, realized $342 million in income from investments in 2018.
The statistic that “In the US, Burford Capital, a leader in the industry, realized $342 million in income from investments in 2018” indicates that Burford Capital, which is a prominent player in the finance and investment sector, generated $342 million in income from its investments in the United States over the course of the year 2018. This figure reflects the successful performance and profitability of Burford Capital’s investment activities in that year, highlighting their strong market presence and ability to make lucrative investment decisions. As a leader in the industry, Burford Capital’s high income from investments signifies its expertise in identifying and capitalizing on profitable investment opportunities within the US market.
In 2019, 67% of UK companies had first-hand experience of litigation finance, up 29% from 2016.
The statistic indicates that in 2019, a significant portion of UK companies, 67%, had engaged in litigation finance, which is a form of funding where third-party investors finance lawsuits in exchange for a portion of the proceeds. This represents a notable increase of 29% compared to the previous study conducted in 2016. The rise in the percentage of companies utilizing litigation finance suggests a growing trend and acceptance of this financial tool within the UK business environment. Companies may be increasingly turning to litigation finance to manage legal costs, mitigate risks, and access additional capital for pursuing legal claims.
Growth in the use of litigation finance in Australia was reported to be 28% in 2020.
The statistic indicates that the use of litigation finance in Australia increased by 28% in 2020 compared to the previous year. Litigation finance involves third-party funding for legal expenses in exchange for a portion of the settlement amount. This significant growth suggests a rising trend in seeking external financing for legal matters in Australia, possibly due to factors such as the increasing complexity and cost of litigation, as well as the potential benefits of sharing risks and costs with external funders. This statistic highlights the evolving landscape of legal finance in Australia and underscores the importance of understanding and utilizing various funding options for legal cases.
For the fiscal year ending 2020, Burford Capital provided $500 million in new case investments globally.
The statistic states that Burford Capital, a legal finance firm, offered $500 million in new investments for legal cases worldwide during the fiscal year 2020. This figure represents the total amount of capital that Burford committed to financing various legal matters, such as commercial disputes, arbitration cases, and intellectual property claims. By providing these investments, Burford enables litigants to pursue their cases without bearing the financial burden themselves, in exchange for a share of the successful outcome. This substantial investment demonstrates Burford’s confidence in the legal cases it chose to fund and its willingness to support clients in seeking justice through the legal system.
Around 40% of private practice lawyers in London have used litigation finance, a statistic that has doubled since 2017.
The statistic indicates that there has been a significant increase in the usage of litigation finance among private practice lawyers in London, rising to around 40% from a lower proportion in 2017. Litigation finance involves obtaining funding for legal disputes in exchange for a portion of the final settlement or award. The doubling of this statistic suggests a growing trend in the legal industry where lawyers are increasingly turning to litigation finance as a strategic tool to manage costs, mitigate risks, and unlock potential opportunities for clients. This shift may be driven by the rising costs of litigation, an increased awareness of available funding options, and a desire to align interests between lawyers and their clients.
Among Cassels Brock lawyers surveyed in Canada, 37.5% had recommended litigation funding to their clients.
The statistic suggests that among the lawyers surveyed at Cassels Brock in Canada, 37.5% of them had recommended litigation funding to their clients. This implies that a significant proportion of lawyers at this firm are familiar with and open to the idea of litigation funding, which involves third-party financing for legal expenses in exchange for a portion of the proceeds from a successful lawsuit. The statistic could indicate that there is a perceived benefit or need for litigation funding among clients of Cassels Brock, possibly due to the complexity or cost of legal cases. Overall, the data highlights the prevalence of litigation funding as a viable option within the legal services offered by Cassels Brock lawyers in Canada.
By 2020, 75% of practitioners and respondents who have used litigation financing have found it beneficial.
The statistic states that by the year 2020, 75% of both practitioners and respondents who have utilized litigation financing have reported finding it beneficial. This finding suggests that a significant majority of individuals involved in legal proceedings and utilizing financial support found the practice to be advantageous. Litigation financing can offer financial assistance to individuals or companies involved in legal disputes by providing funds for legal fees and expenses in exchange for a portion of the eventual settlement or judgment. The statistic indicates that the majority of users have experienced positive outcomes from utilizing this type of funding, potentially benefiting from improved access to legal representation, increased ability to pursue legal claims, or reduced financial strain throughout the litigation process.
By the start of 2021, Burford Capital had a litigation portfolio valued at $4.6 billion.
The statistic stating that Burford Capital had a litigation portfolio valued at $4.6 billion by the start of 2021 suggests that the company holds a substantial amount of investments in various legal cases and litigation matters. This valuation likely includes the estimated potential future payouts and settlements from ongoing and pending litigations that the company has financially backed or invested in. As a litigation finance firm, Burford Capital provides funding to clients involved in legal disputes in exchange for a portion of the financial award or settlement. The $4.6 billion valuation indicates the size and scale of Burford’s investments in litigation opportunities and highlights the significant financial resources the company has committed to this asset class.
About 35% of law firms use litigation funding in IP lawsuits, up from only 15% in 2013.
The statistic indicates that there is a growing trend of law firms utilizing litigation funding in intellectual property (IP) lawsuits. Specifically, it states that 35% of law firms currently utilize litigation funding for such lawsuits, representing a significant increase from the 15% reported in 2013. This suggests that more law firms are recognizing the benefits and advantages of using litigation funding to finance their IP cases, which can help them manage costs, mitigate risks, and potentially improve their chances of success in these complex legal matters. The upward trend in the use of litigation funding in IP lawsuits highlights a shift in the legal industry towards exploring alternative funding options to support litigation efforts.
References
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