$2.47 Billion of Money Deployed Last 12 months Throughout U.S. Professional Litigation Finance Business, As Growing Sector Weathers Pandemic Storm
Westfleet Advisors’ 2nd Yearly Litigation Finance Sector Report Examines Unpredictable Calendar year for Flourishing Asset Class
The number of litigation finance vendors in the United States, their assets beneath administration (AUM), and the pounds they committed to new financing bargains, all grew about the last yr, in accordance to a new report from litigation finance advisory organization, Westfleet Advisors. As in depth in The Westfleet Insider: 2020 Litigation Finance Marketplace Report, between June 2019 and June 2020, 46 energetic funders managed a mixed $11.3 billion in assets allocated to US industrial litigation investments, an 18% maximize from the former 12 months. Irrespective of the onset of a worldwide pandemic and resulting disruption to the justice program, the total bucks fully commited to new investments by funders also grew by 6% – to $2.47 billion.
For the 2nd calendar year, Westfleet analyzed facts gathered right from litigation funders to work out the size of the U.S. litigation finance current market. The most full and revealing photograph at any time painted of the sector, The Westfleet Insider characteristics information and commentary on the sizing, scope and focus of U.S. business litigation finance. This year’s report builds on the 2019 version by adding historical context and new metrics that add supplemental depth to the general sector analysis.
“One of our main beliefs is that affordable field transparency serves to teach the general public and increase ease and comfort with, and ultimately utilization of, litigation finance,” claimed Charles Agee, founder of Westfleet Advisors. “Because of the aberrational nature of 2020, we are cautious of drawing sweeping conclusions about the trajectory of the current market, on the other hand, it is very crystal clear that buyers keep on to be drawn to the sector, attracted by fairness-like, non-correlated returns.”
It continues to be to be viewed whether the pandemic and the extraordinary slowing of the U.S. economic system that followed will be an intermediate-time period boon to the litigation finance industry. As highlighted in this year’s report, the disruptions in worldwide small business operations possible developed a lag in litigation funders’ expense processes that triggered offers to increase just outside Westfleet’s info selection period of time. Regardless, the report’s conclusions make distinct that individuals who predicted a significant progress calendar year for the litigation finance sector could have underestimated the effects COVID-19 would have on the successful procedure of the nation’s litigation infrastructure.
“Time—and hopefully a fast-approaching return to normalcy—will inform what the litigation finance industry’s precise trajectory is,” Agee extra. “The worries of the very last 12 months have brought into sharp focus the myriad inefficiencies and options to make improvements to, across the sector, which should generate development and innovation for a extended time to appear.”
Added important results from the 2020 edition of the Westfleet Insider consist of:
- The regular size of the transactions Westfleet Advisors analyzed was $7.8 million. Solitary make a difference offers averaged $4.5 million, while portfolio transactions averaged $12.8 million.
- The distribution of specials in between law corporations and businesses remained comparatively regular from 2019 to 2020.
- Litigation funding commitments to AmLaw200 firms remained steady 12 months-more than-yr, falling slightly from 30% to 28%.
- Eighteen percent of all money deployed past calendar year was for patent litigation issues, and 80% of customer-directed portfolio transactions included patent infringement litigation.
The whole report is offered for download Below.
About Westfleet Advisors
Westfleet Advisors is the foremost litigation finance advisor in the United States. It was founded in 2013 to convey larger transparency and effectiveness to the litigation finance sector by equipping customers of litigation financing with abilities and resources. Our main mission is to ensure claim holders and lawyers have all the info they require to be thriving with litigation funding. Our senior leadership has been lively in the litigation finance marketplace due to the fact 1998.
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