November 19, 2019—NASHVILLE— The first-ever detailed analysis of the U.S. commercial litigation finance industry places its size at $2.3 billion, leading U.S. litigation finance advisor, Westfleet Advisors, reported today in its inaugural Westfleet Advisors Litigation Finance Buyer’s Guide. Driven by data collected directly from litigation funders, the Guide represents the first reliable calculation of the size of the U.S. litigation finance industry and offers the most complete and revealing picture ever painted of the sector. This study includes data on the size, scope and focus of U.S. commercial litigation finance, as well as detailed profiles of many of the 41 litigation funders active in the space.

Litigation finance has remained to many—including the corporate legal departments that are its customer base—a market shrouded in mystery but filled with tremendous opportunity for users and funders alike. Through its canvassing of individual providers, Westfleet Advisors was able to “pull back the curtain” on the industry, finding that financiers have $9.5 billion of capital dedicated to financing commercial litigation in the U.S. During the 12-months from July 1, 2018 to June 30, 2019, $2.3 billion was committed to commercial litigation finance transactions in the U.S. market, quite possibly indicative of a current oversupply of capital. “[T]hese industry dynamics create favorable conditions for those potential users of litigation finance who can successfully navigate the market,” the guide concludes.

“Despite all the industry’s advances and virtues, litigation finance remains mostly opaque to its potential users, to the courts, and to other stakeholders in the civil litigation system,” said Charles Agee, founder of Westfleet Advisors and co-author of the buyer’s guide. “The industry will benefit from a broader understanding of its many benefits and from greater transparency generally. This has long been among our core objectives, and we are hopeful that this guide represents an important step in that direction.”

The guide includes one-page snapshots of major litigation financiers, identifying their preferred financing ranges, assets under management (AUM), financing criteria, and key personnel, among other information. Funders included in the guide vary from those with AUM in excess of a billion (including Bentham IMF and Therium), to those with hundreds of millions in AUM (like Validity, Parabellum, and Curiam), to small boutiques with less than $10 million under management.

Additional significant findings from the guide include:

• The commercial litigation finance industry employs nearly 300 people in the U.S.;
• Portfolio deals with law firms make up 47% of capital deployed; and
• 70% of financing supports litigation being handled by law firms outside the AmLaw 200.

The full report is available at this link.

About Westfleet Advisors

Westfleet Advisors is the leading litigation finance advisor in the United States. It was founded in 2013 to bring greater transparency and efficiency to the litigation finance market by equipping users of litigation financing with expertise and resources. Our core mission is to ensure claim holders and lawyers have all the information they need to be successful with litigation financing. Our senior leadership has been active in the litigation finance industry since 1998.

Steve Bashmakov, the company's Chief Financial Officer, commented, "This facility is being provided by one of our institutional partners that understands the fundamental credit quality of these assets and the strength of U.S. Claims' underwriting, origination, and servicing capabilities."

He continued, "It is a continuation of a long-term commitment with a tremendous partner.  We have chosen to renew it because it offers fantastic flexibility as well as attractive pricing and advance rates for our litigation funding business."

The $50M financing facility is yet another in a series of recent votes of confidence from the capital markets that will help fuel the company's continued growth.

About U.S. Claims: U.S. Claims (www.USClaims.com) provides litigation funding for plaintiffs, attorneys, and surgeries.  Its flagship offering is providing non-recourse financial support to personal injury victims, some of whom may have suffered catastrophic injuries from defective products, unsafe premises, motor vehicle accidents, and other types of accidents; this financial support provides the injured plaintiff the means to pay bills and endure the often long and arduous litigation process.

About DRB Financial Solutions, LLC, (DRB) provides liquidity solutions to individuals and small/medium-sized businesses holding high quality but illiquid assets. Having raised over $1 billion in capital and developed a robust origination platform, DRB is a market leader in four major lines of business:  U.S. Claims, CRG Financial, (CRGFinancial.com), DRB Capital (DRBCapital.com) and Producer Advance (ProducerAdvance.com).