The number of litigation finance companies in the United States, their property below management (AUM), and the pounds they fully commited to new financing discounts, all grew about the past calendar year, in accordance to a new report from litigation finance advisory company, Westfleet Advisors. As specific in The Westfleet Insider: 2020 Litigation Finance Marketplace Report, involving June 2019 and June 2020, 46 energetic funders managed a blended $11.3 billion in assets allotted to US professional litigation investments, an 18% raise from the former yr. In spite of the onset of a world-wide pandemic and resulting disruption to the justice method, the total pounds dedicated to new investments by funders also grew by 6% ? to $2.47 billion.
For the next year, Westfleet analyzed info gathered instantly from litigation funders to work out the size of the U.S. litigation finance sector. The most complete and revealing photograph at any time painted of the sector, The Westfleet Insider characteristics data and commentary on the measurement, scope and focus of U.S. industrial litigation finance. This year’s report builds on the 2019 version by incorporating historical context and new metrics that lead further depth to the over-all industry evaluation.
“1 of our core beliefs is that affordable market transparency serves to educate the community and improve consolation with, and finally utilization of, litigation finance,” explained Charles Agee, founder of Westfleet Advisors. “For the reason that of the aberrational character of 2020, we are wary of drawing sweeping conclusions about the trajectory of the current market, nevertheless, it is very distinct that traders keep on to be drawn to the sector, attracted by fairness-like, non-correlated returns.”
It stays to be found no matter if the pandemic and the dramatic slowing of the U.S. economic climate that followed will be an intermediate-term boon to the litigation finance marketplace. As highlighted in this year’s report, the disruptions in worldwide enterprise operations likely designed a lag in litigation funders’ investment decision procedures that brought on offers to prolong just outside Westfleet’s information selection period. Regardless, the report’s results make clear that those who predicted a enormous progress 12 months for the litigation finance sector may well have underestimated the impact COVID-19 would have on the effective procedure of the nation’s litigation infrastructure.
“Time?and hopefully a swiftly-approaching return to normalcy?will inform what the litigation finance industry’s specific trajectory is,” Agee additional. “The problems of the previous 12 months have brought into sharp emphasis the myriad inefficiencies and opportunities to make improvements to, throughout the sector, which should travel progress and innovation for a very long time to appear.”
More important findings from the 2020 version of the Westfleet Insider involve:
- The regular measurement of the transactions Westfleet Advisors analyzed was $7.8 million. Solitary matter discounts averaged $4.5 million, although portfolio transactions averaged $12.8 million.
- The distribution of bargains amongst law corporations and firms remained comparatively consistent from 2019 to 2020.
- Litigation funding commitments to AmLaw200 firms remained steady calendar year-more than-year, falling slightly from 30% to 28%.
- Eighteen % of all capital deployed past 12 months was for patent litigation issues, and 80% of consumer-directed portfolio transactions included patent infringement litigation.
The full report is readily available for obtain Right here.
About Westfleet Advisors
Westfleet Advisors is the main litigation finance advisor in the United States. It was started in 2013 to bring increased transparency and performance to the litigation finance industry by equipping end users of litigation funding with know-how and methods. Our core mission is to assure assert holders and legal professionals have all the information and facts they have to have to be profitable with litigation funding. Our senior management has been energetic in the litigation finance industry because 1998.
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