Trending Now
Commercial Special Features

Key Findings from Westfleet’s 2024 Litigation Finance Market Report

March 26, 2025

Key Findings from Westfleet’s 2024 Litigation Finance Market Report

The U.S. litigation finance market continued to cool in 2024, according to the latest Westfleet Insider report. New capital commitments dropped 16% YoY, marking the second straight year of decline. According to the report, this reduction is being driven mostly by tight capital markets rather than any deep issues with litigation finance itself.

That said, the report doesn’t just show a market in retreat—it highlights how the space is adjusting and evolving. For one, deal sizes are getting bigger. Single-matter deals averaged $6.6 million (up from $4.8 million in 2023), while portfolio deals jumped to $16.5 million. Portfolio structures continued to dominate overall, making up about two-thirds of all new capital committed—roughly the same ratio we’ve seen since 2019.

One of the most interesting trends is the continued rise of claim monetization—essentially, turning a legal claim into upfront capital. This strategy made up 26% of new commitments in 2024, up from just 8% three years ago. Corporate claimants, in particular, seem to be driving this trend as they look for cash flow in a tougher funding environment.

Patent litigation is still the biggest slice of the pie, accounting for 32% of all new capital. Notably, most of that funding went into patent portfolios rather than one-off cases—suggesting funders are leaning into more diversified, lower-risk plays in the IP space.

Another first this year: Westfleet started tracking contingent risk insurance, and the data shows 19% of new capital commitments were insured in some way. That’s a big signal that funders are getting more creative about managing risk.

Big Law’s share of the pie grew a bit too, up to 37% of total capital commitments—though the actual dollars going to the top 200 firms fell to $850 million (down from $960 million the year before), simply because the total pool shrank.

Bottom line: while the market’s clearly under pressure, the players that are still active are getting smarter about how they deploy capital. With signs that capital flows could loosen up in 2025, funders focused on monetization, patent portfolios, and insured deals may be best positioned to ride the next wave of growth.

Commercial

View All
Commercial

Omni Bridgeway Reaffirms Double-Digit AUM Growth Target Through FY28

Omni Bridgeway has restated its medium-term targets for assets under management and cost coverage, telling investors it expects annualised AUM growth of at least 10% through FY28.

As reported by GlobeNewswire, the Australian funder is also targeting 70% coverage of its operating costs by FY28. Assets under management stand at A$5.9bn, up 12% since June 2025, representing a 17% compound annual growth rate since June 2022.

The cost coverage trajectory is the more telling figure. The measure has moved from 17% in FY23 to 53% in FY26, as the business shifts weight from its own balance sheet toward third-party capital and fee income. Operating expenses fell 20% in FY26 while new commitments rose 38%.

Chief executive Raymond van Hulst has positioned the group around capital-light growth. FY26 produced record proceeds of A$350.5m, up 49%, alongside A$712.2m in new commitments, A$862m of third-party capital and more than A$1.6bn in total capital formation.

The guidance is a reaffirmation rather than a new disclosure, and the targets were set out in the company's FY26 results cycle. Its value lies in the consistency of the message: Omni Bridgeway continues to tell the market that growth will come through managed funds and co-investment rather than through expanding its own book.

Commercial

Legal-Bay Launches Attorney Fee Advancement Program Offering Up to $1 Million

Legal-Bay has introduced an attorney funding and fee advancement program that provides contingency-fee law firms with up to $1m against fees they have already earned but not yet received.

As reported by PR Newswire, the Jersey City-based funder is targeting firms waiting on settlement proceeds. Qualifying firms need a signed settlement agreement and release along with a retainer, and the company says funding can close within two to three business days.

The program sits alongside a broader set of offerings that includes law firm funding against contingency receivables, cash advances, settlement funding and case cost funding. Chris Janish, Legal-Bay's chief executive and founder, framed the product around lawyers who have already completed the work and are simply waiting to be paid.

The launch builds on the firm's existing attorney-facing business. Legal-Bay opened an attorney funding branch in October 2023 and added a case cost program in May 2025.

Fee advancement addresses a structural timing problem in contingency practice. A firm can win a case and still face a gap of months between the settlement agreement and the arrival of funds, during which payroll, case costs and new matter intake all continue. Products of this kind convert a signed settlement into near-term working capital, and the segment has drawn increasing attention from funders looking for shorter-duration, lower-variance exposure than single-case investment typically provides.

Commercial

Burford Capital Backs AI Litigation Startup Launched by Former DOJ Antitrust Chiefs

Burford Capital is among the investors behind FluxCap, an artificial intelligence startup for litigators launched publicly this week by two former leaders of the US Department of Justice's Antitrust Division.

As reported by PYMNTS, the company was founded by Jonathan Kanter and Doha Mekki, who ran the division under the Biden administration. FluxCap has raised $6.4m in seed funding from Y Combinator, Bloomberg Beta, Deep Work Capital, Coalition Operators, Omidyar Network and Burford Capital.

The platform is built for plaintiff-side litigators and government enforcers rather than the defence bar, and is aimed at evaluating claims, managing discovery, analysing evidence and outlining arguments. Its initial focus is antitrust. The team includes former DOJ and White House officials alongside a number of Palantir alumni, and the company says its tools are already being used in active matters seeking more than $1bn in damages. Three products have been named so far: FluxAlmanac, FluxFacts and Vision Manager.

Burford's participation is the detail of note for the funding market. Capital that typically backs individual cases is being deployed into the infrastructure that selects and builds them, which gives funders earlier visibility into claim quality.

The wider legal technology market remains uneven. Roughly $3.2bn flowed into legal startups in 2025, up about 150% year on year, but Tracxn data puts legal tech funding through October 2026 at $2.74bn, down 19.7%. Courtroom performance also remains unproven: researcher Damien Charlotin had catalogued 2,231 decisions involving AI hallucinations as of this week.