This guide explores the fundamentals of litigation funding, a growing financial tool in the UK legal system and highlights the investment opportunities available through Westbrooke Associates.
What Is Litigation Funding?
Imagine a scenario where an individual or small business faces a legal dispute against a large corporation but lacks the financial resources to pursue the case. This is where litigation funding comes into play. It provides the financial backing needed to cover the legal costs, allowing claimants to seek justice without bearing the upfront costs.
Recent high-profile cases, such as the British Post Office scandal, have underscored the critical role that litigation funding plays in levelling the playing field between individuals or small enterprises and larger, well-financed opponents.
Litigation funding not only supports access to justice but also offers an intriguing investment opportunity for those looking to diversify their portfolios.
Litigation Funding In The UK: Unlocking Investment Opportunities
The UK has one of the most advanced markets for litigation funding globally. In an environment of rising legal costs and increasingly complex cases, litigation funding has become essential for many individuals and companies. It offers a way to overcome financial barriers and increases the likelihood of favourable legal outcomes by providing access to necessary resources.
Investors are increasingly drawn to this asset class as it is not directly correlated with traditional financial markets, offering a unique alternative for portfolio diversification. The UK’s regulatory environment has also evolved to support this growing industry, making it more accessible to both institutional and individual investors.
A Growing Niche Asset Class
Litigation funding is experiencing rapid growth. Recent research from Reynolds Porter Chamberlain LLP revealed that the top 15 UK litigation funders reported record assets of £2.2 billion in 2020/21, an 11% increase from the previous year.
The rising demand for litigation funding, particularly in smaller cases, presents a key opportunity for investors. Factors such as the surge in legal costs, increased awareness of funding benefits and favourable regulatory changes are driving this market forward. For investors, this creates a path to potentially steady returns with relatively low risk.
Litigation Funding Vs. Stock Market Investments
Litigation funding offers several advantages over traditional stock market investments and is driven by rising demand for legal financing solutions amid increasing litigation costs.
According to a report from Future Market Insights, the global litigation funding market is anticipated to generate revenues of US$ 17,160.8 million in 2023 and is projected to grow significantly, reaching $43 billion by 2033.
It provides a steady income stream, with no correlation to traditional markets, making it an appealing option for investors seeking to mitigate risk and capitalise on alternative investment classes.
Through Westbrooke Associates, investors can access litigation funding opportunities with reasonable minimum investments, making it a suitable choice for those looking to diversify their portfolios with a low-risk, high-return alternative.
Start Your Journey In Litigation Funding
As we have read, litigation funding presents a compelling alternative investment opportunity for those seeking steady returns and portfolio diversification.
Westbrooke Associates helps investors explore this growing market and offers opportunities benefitting from robust safeguards and high growth potential.
If you’re interested in learning more about litigation funding and how Westbrooke Associates can help you enhance your investment strategy, please contact us for more information.
Credit Sources:
Scotch Whisky Contribution to UK Economy Source: Scotch Whisky Association, Scotch Whisky Boosts UK Economy by £7.1bn.
Younger Consumers and Market Share Source: Emma Gibbs, How Scotch Whisky Brands Can Appeal to the New Age Gen-Z Consumer, LinkedIn.
Westbrooke Associates identifies a wide range of investment opportunities, including investments in litigation funding. Register your interest today and explore how we can help you target and capture attractive returns.