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The Alternative Legal Service Providers Market in US to Reach Revenues of Around $19 Billion During the Period 2020 −2025 – Market Research by Arizton

CHICAGO, Feb. 6, 2020 /PRNewswire/ — According to Arizton‘s recent research report, Alternative Legal Service Providers Market in US – Industry Outlook and Forecast 2020-2025 is expected to grow at a CAGR of over 23% during the period 2019−2025.

Key Highlights Offered in the Report: 

  • The identity of the US legal industry is being refreshed and turbocharged in ways never seen before, with alternative legal service providers at the heart of all this action. The disaggregation of legal services is underway, not driven by players in the industry, but by clients.
  • On average, many legal businesses and in-house legal teams are pouring in significant work and time on low-value tasks across legal functions. They are struggling to utilize talent efficiently. As this realization is increasingly dawning on those working in legal departments, they are juggling the demand from the management to operate with the same speed and efficiency as the overall enterprise.
  • Organizations are increasingly implementing effective preventative and support measures, thus driving demand for litigation and investigation support.
  • There is a resistance among both corporations and law firms by not altering their models to fully engage alternative legal service providers, thereby driving inefficiencies in the market.
  • While alternative legal service providers have a lot to offer, they have a scattered approach when it comes to listening to client goals and concerns and communicating how they can help in maneuvering business challenges.
  • Quite a few law firms use the services of alternative legal service providers via partnerships and securing aid to suitably provide services in spaces of legal research, litigation, e-discovery, and document review among others, which they traditionally offered themselves.

Key Offerings:

  • Market Size & Forecast by Revenue | 2019−2025
  • Market Dynamics – Leading trends, growth drivers, restraints, and investment opportunities
  • Market Segmentation – A detailed analysis by products, services, end-user, and geography
  • Competitive Landscape – Profile of 4 key vendors and 20 other vendors

Get your sample today! https://www.arizton.com/market-reports/alternative-legal-service-providers-market-united-states

Alternative Legal Service Providers Market in US – Segmentation

  • New Law firms have been the most disruptive players in the market, accounting for major volumes of work in the document review and litigation spheres. There is a growing trend of building strong SLAs and utilization of performance metrics.
  • As several organizations predict an uptick in litigations, the market for litigation and investigation support is expected to grow. Businesses that venture into international trades are being threatened by trade wars, as a result, the environment is likely to be increasingly litigious.
  • A shift in focus from brand status and services to efficacy, thereby providing high viability on investments. The demand for document review and legal research continues to grow significantly. In an age where customer-centricity and differentiation are vital, several players are increasingly examining cost-benefit trade-offs.

Market Segmentation by Providers

  • New Law Companies
  • Captive LPOs
  • Staffing/Recruiting and Contract Lawyer Companies
  • Others

Market Segmentation by Services

  • eDiscovery
  • Investigation and Litigation Support
  • Contract Management
  • Document Review and Coding
  • Legal Research
  • Regulatory Risk and Compliance
  • Others
  • Urban

Market Segmentation by End-users 

  • Law Firms
  • Corporations

Alternative Legal Service Providers Market in US – Dynamics

Companies in the US have, for quite long, had a higher proportion of legal spending than other countries in the rest of the world. Companies in the country spend 170% more on these services when pitted against global companies with banking, real estate, and technology topping the list of spends by industry. The high spends are attributed to the fact that the US has a heavier litigious climate. Apart from that, it is characterized by widely varying laws and complexities in every state driving up volumes in terms of legal advice required. Further, the pay of legal practitioners also tends to be higher in the country with expensive billable hours, demonstrating demand. Another indicator of the growth of the legal industry is the reversal of the decline of legal employment and law school applications in 2018, post years of flat or deteriorating levels.

Key Drivers and Trends fueling Market Growth:

  • Prevalence of Dissatisfaction with Law Firms
  • Legal Departments in Overdrive
  • Focus Shifts to Delivery
  • Blurring Lines Between Traditional and Alternative

Get your sample today! https://www.arizton.com/market-reports/alternative-legal-service-providers-market-united-states

Major Vendors

  • Allen & Overy
  • Axiom
  • Elevate
  • UnitedLex

Other vendors include – BlackStone Discovery, Clifford Chance, Consilio, Driven, Epiq, Everlaw, Exigent, Greenberg Traurig, Integreon, KLDiscovery, LegalZoom, Lawyers on Demand (LoD), Mindcrest, Reed Smith, Legility, Lumen Legal, Morae Global, Orrick, QuisLex, and Thomson Reuters.

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Announcements Consumer

Golden Pear Upsizes Corporate Note to $78.7M Amid Growth Plans

By John Freund |

Golden Pear Funding has extended and upsized its investment-grade corporate note to $78.7 million, further bolstering the firm's capacity to serve the expanding litigation finance sector. The New York-based funder, a national leader in both pre-settlement and medical receivables financing, said the proceeds will support working capital and fuel strategic growth initiatives.

A press release from Golden Pear outlines how the capital raise reflects continued investor confidence in the firm’s business model. CEO Gary Amos noted that the infusion is critical as Golden Pear seeks to scale alongside the “rapidly expanding litigation finance market.” CFO Daniel Amsellem added that the new funding aligns with the company’s capital allocation strategy, aimed at optimizing operational efficiency and executing strategic projects.

Brean Capital, LLC acted as the exclusive financial advisor and sole placement agent on the transaction.

Founded in 2008, Golden Pear has funded more than $1.1 billion to over 87,000 clients and remains one of the largest specialty finance companies in the U.S. Its business model spans legal case funding and medical receivables purchasing, with backing from a network of private equity partners that provide institutional support for continued expansion.

Announcements Regulatory Issues

LionFish Updates Model Documents in Response to CJC Report

By John Freund |

LionFish Litigation Finance Ltd has released a new suite of model litigation funding documents, updating its original set from February 2021. The revision comes on the heels of the Civil Justice Council's (CJC) Final Report on Litigation Funding, issued on 2 June 2025, which calls for a regulatory structure informed by best practices, including key principles published by the European Law Institute (ELI) in October 2024.

A LionFish press release details that the updated suite incorporates several of the ELI Principles (notably 4-12) and broader CJC recommendations, except where doing so would require legislative or procedural reform. LionFish's goal, according to Managing Director Tets Ishikawa, is not to dictate market norms but to foster industry-wide standardisation and efficiency. This proactive move is also intended to spark further collaboration between funders, insurers, and legal practitioners to develop trade practices akin to those in mature financial markets, such as those promoted by the Loan Market Association and the International Swaps and Derivatives Association.

The new suite includes three core documents: a litigation funding agreement, a priorities deed to define proceeds distribution, and an assignment deed for insurance benefits. Notably, LionFish has also added documentation for co-investment arrangements, reflecting a growing trend in syndicated funding deals. The funder has already closed seven such transactions.

Managing Director Tanya Lansky emphasised that while litigation funding remains complex, making documentation public enhances transparency and facilitates quicker deal closings—an essential factor for sustaining market growth.

As litigation finance continues to mature, this move by LionFish highlights a shift toward professionalisation and standardisation. With regulators increasingly focused on transparency and fairness, such initiatives may set a de facto benchmark for others in the industry. The question remains: will other funders follow suit, or will regulatory mandates be needed to compel alignment?

Announcements Commercial Legal Innovation

Backlit Capital Solutions Launches Legal Finance Consultancy

By John Freund |

Backlit Capital Solutions has announced the launch of its full-service legal finance consultancy. The firm aims to provide comprehensive funding solutions for legal claims, offering services that include litigation finance, arbitration funding, and judgment enforcement strategies.

An article in PR Newswire states that Backlit Capital Solutions is positioning itself as a comprehensive provider in the legal finance sector, aiming to serve a diverse clientele that includes claimants, law firms, lenders, and investors. The firm's service offerings encompass litigation finance, arbitration funding, and judgment enforcement strategies, indicating a broad approach to legal funding solutions.

The launch of Backlit Capital Solutions reflects a growing trend in the legal finance industry, where firms are expanding their services to address the multifaceted needs of legal claimants and their representatives. By offering a suite of services under one roof, Backlit Capital Solutions aims to streamline the funding process and provide tailored solutions to its clients.

As the legal finance landscape continues to evolve, the entry of firms like Backlit Capital Solutions underscores the increasing demand for specialized financial services in the legal sector. Their comprehensive approach may set a new standard for how legal finance consultancies operate, potentially influencing the strategies of existing and emerging players in the market.