A Look into 2019 for the Thriving Industry of Litigation Funding
The future of litigation financing looks bright as more companies enter the playing field and the industry matures. According to a survey conducted by Burford Capital, the industry has seen enormous growth rates over the last several years with 36 percent of responding US law firms using litigation finance. Capitalists believe that this growth trend will continue as half of the respondents who had not used litigation funding expect to within the next two years.
Law firms across the United States and the globe are becoming more familiar with the benefits of litigation finance including the ability to pursue claims that would bring value to the business and become more competitive in an otherwise crowded legal arena.
Why Look to Litigation Financing?
As litigation finance options increase, more and more law firms will look to litigation funding for their clients or themselves. The truth is that litigation is expensive. Pursuing a legitimate case may no longer be based on the merits of the case but on the amount of money that a person has to litigate it. Litigation can take years and can be financially unsustainable for some law firms. Third-party funding helps to alleviate that pressure and provides the opportunity for more cases to see their day in court.
Not Just for Plaintiffs
Once reserved for plaintiffs firms, litigation funding has taken on the competing defense market. The increasing costs and complexities of defending cases have helped defense firms to seek third-party funding. This growth trend has opened the door from commercial litigation funding to funding for mass torts and investment in a broad portfolio of cases.
One of the most exciting prospects for the year ahead in litigation financing is the continued potential for growth. With no signs of slowing down, the industry is quickly gaining awareness from law firms of all sizes. While, litigation funding in global markets such as the UK and Australia is a well-established resource for helping firms help clients, take on more valuable cases and sustain cash flow, it is really just now burgeoning in the United States. The increase in awareness and extraordinary cost of litigation has helped to propel litigation funding to a multi-billion dollar industry that is projected to continue growing.
Litigation financing has helped law firms to control costs and help more clients. While there are ethical considerations that are being addressed by courts across the country, most third-party financing agreements have been given the green light. Most pundits agree that even with a looming recession set to hit in the coming years, the litigation financing industry will continue to grow thanks to its independence and non-reliance on other markets.
What’s Next for the Industry?
Litigation financing seems to be in full stride. The industry recently saw the launch of the Litigation Finance Journal and New York will host the 2nd annual Financing, Structuring & Investing in Litigation Finance Conference on June 4, 2019. For both lenders and law firms, the future appears bright.
If you are ready to help more clients, grow your firm and find a competitive edge contact Amicus Capital Group today. In as little as ten minutes we can help you understand the litigation funding opitons you may need to cover legal costs, bring in new business and provide the best possible representation for your clients. Our finance specialists are available to discuss cost-effective solutions for growing your firm today. Contact our offices today at (877) 926-4287.
This blog post does not contain legal or financial advice. Author and publisher disclaim any and all warranties, liabilities, losses, costs, claims, demands, suits, or actions of any type or nature whatsoever, arising from or any way related to this blog, the use of this blog, and/or any claim that a particular technique or device described in this blog.