Whilst the UK, US and Australia remain the most established markets for litigation funding, jurisdictions across Europe are shaping up to be increasingly valuable prospects for funders to pursue. In a new feature, one funder suggests that Spain has a bright future, not only through its domestic market, but also through its ties to the wider Latin American region.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
Whilst the UK, US and Australia remain the most established markets for litigation funding, jurisdictions across Europe are shaping up to be increasingly valuable prospects for funders to pursue. In a new feature, one funder suggests that Spain has a bright future, not only through its domestic market, but also through its ties to the wider Latin American region.
In an interview with Leaders League, Paloma Castro, senior legal counsel at Deminor, discusses the current state of litigation finance and the potential for Spain to become an increasingly active market for third-party funding. Castro points to the ongoing economic instability, rising inflation and low growth as key drivers for a global increase in the demand for litigation funding, as companies will be in need of outside capital to fund meritorious litigation.
Looking at the Spanish market, Castro argues that the country has great potential to evolve into an attractive market for litigation funders, standing out as the fourth largest economy in the European Union. Beyond its economic clout, Castro also suggests that Spain benefits from ‘a robust legal system that guarantees legal certainty’, which could lower risk for interested funders.
Beyond its domestic market, Castro highlights Spain as ‘the gateway to the Latin American market’, which is another region that funders will be keen to explore given its predisposition to resolving disputes through arbitration.
