Investing in courtroom outcomes is forecast to be a $24 billion industry in 5 years

Investing in courtroom outcomes is forecast to be a $24 billion industry in 5 years
The litigation funding investment market js set for strong gains according to a new report.
AUG 11, 2023

Retail investors are expected to join institutions in a growing investment market which provides funding for legal disputes.

The global litigation funding investment market is estimated at around $16 billion in 2022, but forecast to grow by 9% for 2023-2028, becoming a $24 billion market in five years’ time as the growth of the global legal services market intensifies.

The forecast from RationalStat highlights how increasingly complex legal cases is driving demand for litigation funding as traditional sources of financing such as banks and venture capital firms become harder to secure.

Surging legal fees are also boosting demand for litigation funding while “investors and companies alike are becoming more and more interested in litigation financing, which is also creating new investment opportunities, thus helping the market to grow significantly,” the report states.

The market is expected to see considerable growth in demand from the media and entertainment sector due to rising cases of trademark and copyright infringement although the construction sector will continue to dominate due to a rise in the implementation of green building programs.

NORTH AMERICAN LEADS

North America has the largest market share for litigation funding investment due to its favourable regulatory environment and the presence of some of the largest funders.

While institutional investors have typically been the main participants in the market, retail investors are gaining opportunities too. An Indian fintech firm LegalPay launched an interim finance healthcare-focused fund for retail investors in 2022, enabling them to participate in asset-backed legal and debt financing asset classes through fractional ownership.  

Latest News

Jobs data anticipated but will it be nudge the Fed needs to cut again?
Jobs data anticipated but will it be nudge the Fed needs to cut again?

Markets are expecting another signal of strong US economy

Edward Jones welcomes back 'boomerang' advisor in Iowa
Edward Jones welcomes back 'boomerang' advisor in Iowa

Seasoned industry veteran returns to the firm where he started his career.

Citi says it cannot be responsible for trader's conduct
Citi says it cannot be responsible for trader's conduct

ICAP broker alleges harassment by Citi trader

BofA's Harnett says one thing could spark risk-on rally
BofA's Harnett says one thing could spark risk-on rally

Strategist says the bulls are in control.

Blackstone expects private credit market to soar to $30T
Blackstone expects private credit market to soar to $30T

Asset manager says current level if just a 'slither' of the opportunity.

SPONSORED Leading through innovation – with Tom Ruggie of Destiny Wealth Partners

Uncover the key initiatives behind Destiny Wealth Partners’ success and how it became one of the fastest growing fee-only RIAs.

SPONSORED Client engagement strategies, growth and retention in the down markets

Key insights from Gabriel Garcia on adapting to demographic shifts and enhancing client experience in a changing market