$3.2 Billion of Capital Committed Last Year in U.S. Commercial Litigation Finance As Industry Shows No Signs of Slowing Down

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Feb 16, 2023, 06:00 ET

Westfleet Advisors' 2022 Litigation Finance Market Report indicates a 16% annual growth rate, the largest in the last three years

NASHVILLE, Tenn., Feb. 16, 2023 /PRNewswire/ -- Among providers of commercial litigation financing in the United States, capital committed to new financing deals, as well as their assets under management, grew at a more robust pace over the last year, according to a new report from leading litigation finance consultancy, Westfleet Advisors. According to The Westfleet Insider: 2022 Litigation Finance Market Report, 44 active funders managed a combined $13.5 billion in assets allocated to US commercial litigation investments, a 9% increase in AUM from the previous year. Capital committed to new investments grew by 16% last year, the largest increase in the last three years.

For the fourth consecutive year, Westfleet analyzed data collected directly from litigation funders to calculate the size of the U.S. commercial litigation finance market. The most complete and rigorous analysis of the sector, The Westfleet Insider features data and commentary on the size, scope, and focus of U.S. commercial litigation finance. This year's report builds on the three prior years' analyses, and with this historical perspective, reveals signs of a stable industry that continues to experience healthy growth in deployments.

"Last year, our industry grew at a more rapid pace than we have seen since Westfleet began analyzing these data in 2019," said Charles Agee, founder and CEO of Westfleet Advisors. "It remains to be seen whether last year's uptick in investment activity merely reflects a temporary acceleration or recovery from the various pandemic-related disruptions in recent years, or whether it's a sign of more substantial growth rates in the years ahead. I tend to think it's the former. Nonetheless, I am highly confident that demand for commercial litigation financing among law firms and their corporate clients shows no signs of slowing down."

The 16% annual increase in new capital commitments by US commercial litigation funders last year is particularly notable compared with the 6% and 11% growth rates in 2020 and 2021, respectively. However, perspective is useful when interpreting the significance of these figures and the industry's impact on US commercial litigation more broadly. "Only a few hundred commercial cases are funded annually in the US, representing an infinitesimal fraction of the millions of civil cases filed annually. Both industry advocates and opponents would do well to keep this in mind."

About Westfleet Advisors
Westfleet Advisors is a litigation finance advisory firm that serves the nation's leading litigators and their clients who wish to explore litigation financing. Westfleet's core mission is to bring greater transparency and efficiency to the users of litigation finance, thereby maximizing the utility of this vital—and all too often elusive—form of financing. Since its founding in 2013, Westfleet has advised on more than 150 financing transactions involving elite commercial litigators from Big Law as well as leading litigation boutiques.

CONTACT: Gretchen Lowe, [email protected]

SOURCE Westfleet Advisors