Litigation Funding Market

Litigation funding is a mechanism whereby a qualifying investor funds all the costs of a piece of litigation, including adverse costs, in return for a share of the proceeds.

The UK Law Society estimates that the UK Litigation market is worth more than £30 billion to the UK economy. In most cases, third-party funding will only be available for claims that have a very high value and strong chance of success.

This is so the litigation funder isn't taking on too much risk when paying for legal action it has no direct involvement in.

It will usually also be a requirement for the person making the claim to have insurance protecting themselves, and therefore the funder, from paying any of an opponent's costs should the claim fail. This is known as ATE (After the Event Insurance)

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