Less Than 12% of Federal and State Case Filings Present Strong Opportunities for Litigation Funding, According to First-of-Its-Kind Market Intelligence Study

Less Than 12% of Federal and State Case Filings Present Strong Opportunities for Litigation Funding, According to First-of-Its-Kind Market Intelligence Study

Though the U.S. litigation finance market continues to expand, less than 12% of federal and state cases filed in 2021 met the minimum threshold to be considered for investment, according to a new report issued today by tech-enabled litigation funder LexShares. This finding, detailed in the inaugural edition of LexShares’ special report, “The Litigation Funding Barometer: A Data-Driven Analysis of What Litigation Funders Want,” illustrates the high bar that law firms and plaintiffs must reach to attract valuable funding dollars for their cases.  The report analyzes more than 30,000 federal and state case filings from 2021, graded by LexShares’ proprietary Diamond Mine origination software, to provide lawyers with a unique window into how attractive their matters might be to litigation funders. The Diamond Mine algorithm assesses each case based on numerous factors, such as damages alleged and the track record of plaintiff’s counsel, before assigning a raw score ranging from 1-25.  In an industry first, “The Litigation Funding Barometer” breaks down cases across several claim types and dozens of jurisdictions, while also revealing which law firms filed the greatest number of cases with strong funding potential. Among the study’s high-level findings, in 2021: Trade secrets, antitrust, and contract disputes filed in federal court represented some of the strongest funding opportunities across all jurisdictions.  Federal cases presented a higher percentage of strong funding opportunities than state cases.  Law firms appearing in the NLJ500, which we categorize as “Big Law,” filed the cases with the strongest investment potential. In addition to this and other detailed insights, the report’s findings are accompanied by insider commentary from members of the LexShares investments team, offering lawyers and law firms key context around the characteristics of claims that typically lend themselves to third-party funding arrangements, and why. “Critics of litigation funding have long pointed to the industry’s lack of transparency,” said Cayse Llorens, CEO of LexShares. “By publishing this groundbreaking report, we address a critical, unmet market need for closure of the knowledge gap that still exists between lawyers, clients, and third-party funders. Providing the market with more meaningful information not only equips users of litigation finance to make better business decisions, but also supports LexShares’ mission of increasing access to justice for parties with meritorious claims.”
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New North Litigation Capital Launches, Backed by £50 Million in Senior Secured Financing from Pollen Street Capital

By John Freund |

Pollen Street Capital ("Pollen Street") today announces a new senior secured credit facility of up to £50 million to New North Litigation Capital (“New North”). New North is a commercial litigation finance company and a direct subsidiary of Capital Law, a Cardiff based law firm founded in 2006.

Capital Law has a strong track record in commercial litigation, having closed over 400 claimant cases since 2001 with a 95% win rate. Drawing on its senior leadership and experienced disputes team, Capital Law launched New North to address the underserved small to mid-market segment of commercial litigation market. 

New North will be the only litigation financier in the UK owned and operated by practicing lawyers, bringing their day to day lived experience of handling mid-market litigation into pricing the risk and the funding investment decisions.

Christopher Nott, Founder and CEO of New North commented: “We are pleased to work with Pollen Street on this financing to launch New North Litigation Capital. The funding supports us to bridge a critical gap by funding claims that are often deemed too small by other players in the market. We are excited to work with the Pollen Street team as we create this new kind of litigation funding.”

Connor Marshall-Mckie, Investment Director at Pollen Street, commented:New North addresses an important gap in the litigation funding space, focusing on smaller mid-market commercial litigation. With the significant opportunity available and the deep experience of the leadership team from Capital Law we are excited to partner with the team to support their growth.”

About Pollen Street

Pollen Street is a fast-growing and high-performing private capital asset manager. Established in 2013, the firm has built deep capability across the real estate, financial and business services sectors aligned with mega-trends shaping the future of the industry. Pollen Street manages over €7bn AUM across private equity and credit strategies on behalf of investors including leading public and corporate pension funds, insurance companies, sovereign wealth funds, endowments and foundations, asset managers, banks, and family offices from around the world. Pollen Street has a team of over 95 professionals.

Burford’s Q2 Profits Surge on New Capital

By John Freund |

Burford Capital has delivered its strongest quarterly performance in two years, buoyed by a swelling pipeline of high-value disputes and a fresh infusion of investor cash.

A press release in PR Newswire reveals that the New York- and London-listed funder more than doubled revenue and profitability in the three months to 30 June 2025. CEO Christopher Bogart credited “very substantial levels of new business” for the uptick, noting that demand for non-recourse financing remains “as strong as we’ve ever seen.”

The stellar quarter follows a lightning-quick, two-day debt offering in July that raised $500 million—capital Burford says will be deployed across a growing roster of commercial litigations, international arbitrations, and asset-recovery campaigns. Management also highlighted significant progress in portfolio rotations, underscoring the firm’s ability to monetise older positions while writing new ones at scale. Investors will get a deeper dive when Burford hosts its earnings call today at 9 a.m. EDT.

Burford’s results arrive amid heightened regulatory chatter in Washington and Westminster, yet the numbers suggest the industry’s largest player is unfazed—for now—by talk of disclosure mandates and tax levies. The firm emphasised that its legal-finance, risk-management and asset-recovery businesses remain uncorrelated to broader markets, a pitch that continues to resonate with pension funds and endowments hunting for alternative yield.

For litigation-finance insiders, Burford’s capital-raising prowess and improving margins could have ripple effects: rival funders may face stiffer competition for marquee cases, while law-firm partners might leverage the firm’s deeper pockets to negotiate richer portfolio deals.

International Legal Finance Association (ILFA) Announces End of Year Gala and Inaugural Legal Finance Awards

By John Freund |

 The International Legal Finance Association is pleased to announce its annual End-of-Year Gala Dinner on November 13, 2025.  The event will take place at The Law Society in London, bringing together leading figures from across the legal finance industry for an evening of celebration and reflection on the year’s achievements.  

The dinner will be accompanied by the inaugural Legal Finance Awards.  The awards are designed to recognize and honor excellence across the legal finance ecosystem. They will spotlight the achievements of funders, law firms, brokers, advisors, and other key contributors to the continued growth and innovation of the industry. Nominations for the awards are now open, with the nomination form available here

“The Gala Dinner is a chance for our members and guests to gather in person and celebrate the progress we've made over the year,” said Rupert Cunningham, Global Director of Growth and Membership Engagement at ILFA. “We are especially excited to launch the Legal Finance Awards, which will shine a light on the outstanding work and impact of professionals across our field.”

Tickets for the Gala are on sale now, with discounted pricing available for ILFA members.  More information can be found here.