London law firm RPC published a report stating the balance sheets of UK funders grew from £575 million in 2015 to £723 million last year.
Additionally, the value of litigation financing deals has grown by £25 million in the last year.
“Third-party litigation funding has become an increasingly vital component of the justice system…Few businesses want their cash tied up in funding litigation that will run on for months or even years, but litigation funders are set up to make that longer-term investment.”
-Geraldine Elliott, partner and head of commercial litigation at RPC.
The data within in the report is based on the balance sheets of the top 20 UK funding providers. Those familiar with the industry will know, it is possible there has been even more growth from other undisclosed funders.
The Jackson reforms, which abolished the recoverability of success fees and after-the-event insurance, has been a boost for the sector. Paired with the increasing costs of litigation it is easy to see why more businesses are looking to explore funding.
RPC also claims the balance sheet of UK funders has grown by 55% in five years, from £437m in 2011 to the £723m quoted last year.