2012 looks set to mark the dawn of a new chapter in the world of litigation funding. In recent months legal press has been littered with announcements of new litigation funders entering the marketplace both in the UK and in the US. Caprica litigation funding hit the headlines in December in the UK promising to offer a lower cost solution and Parabellum Capital LLC has just announced itself in the US with the hires of the former Credit Suisse litigation funding team.
With so many new entrants emerging, it can only be a good thing for claimants as competition intensifies. How the market will look in 3 or 4 years’ time remains to be seen. Competition should drive down the returns that litigation funders charge and in time the current pool of third party funding companies will learn just how good their due diligence really is. If the litigation insurance market is any indication, it’s clear there will be winners and losers when it comes to loss ratios.
Director James Blick advises:
The team at TheJudge look forward to navigating our clients through the maze of litigation funding and ATE insurance options in the year ahead. With so much change occurring, it’s imperative litigators keep their eye on the ball.