Westfleet Publishes 2023 Litigation Finance Market Report

By John Freund |

Westfleet Advisors has published its fifth annual Litigation Finance Market Report, providing a data-driven overview of the commercial funding industry in the United States from 1 July 2022 to 30 June 2023. 

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An LFJ Conversation with Michael Kelley, Partner, Parker Poe

By John Freund |

Westfleet Advisors has published its fifth annual Litigation Finance Market Report, providing a data-driven overview of the commercial funding industry in the United States from 1 July 2022 to 30 June 2023. 

Westfleet summarises its findings as ‘indicative of an industry in a state of flux, with some notable players exiting the industry, numerous professionals making lateral moves, and capital commitments to new deals contracting by nearly 14%.’ With regard to the decreasing volume of new capital commitments, Westfleet attributes this trend to the difficult global economic conditions that are affecting all industries, rather than a decline in demand for litigation funding.

Despite this contraction on new capital, Westfleet still found that ‘many funders thrived both in terms of new capital raised, capital committed to new deals, growth in their headcount, and profitability.’ Westfleet’s report suggests that the data from 2023 indicates that the market is still favourable for those established funders ‘with strong track records and a proven ability to consistently attract new capital.’

Key highlights from the 2023 report include:

  • $15.2B in assets under management for 2023, representing a small increase from $15.1B in 2022
  • $2.7B in new commitments to deals in 2023, down from £3.2B in 2022
  • The average deal size declined from $8.6M in 2022 to $7.8M in 2023
  • This was driven by a reduction in the average size of portfolio deals from $10.5M in 2022 to $9.9M in 2023
  • In contrast the average size of single-matter transactions increased from $4.3M in 2022 to $4.8M in 2023
  • The share of new capital dedicated to claim monetization reached 21% in 2023, continuing the upward trend from 14% in 2022 and 8% in 2021

To read the full report from Westfleet Advisors, click here.

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