Litigation funding in Africa – Opportunities in this investment vehicle in 2020 and beyond

investment vehicle
26 Jan 2020

Litigation funding is born from the nexus of law, finance, and commerce. Looking at the global statistics, litigation funding is emerging as a fast-growing, high-return investment vehicle. From discussions with global litigation funders and our own economic analysis, GRMI predicts that this could reach around US$250bn in 5 years and close to US$500bn in 10 years. In fact, litigation funding has become so prevalent and mainstream that Chambers & Partners in 2018 begun ranking litigation funding firms in the USA, and Leaders Rankings has been doing the same for the UK and USA.

Financing companies typically provide non-recourse funding to a litigant (which can be an individual or a company) in exchange for a share in the proceeds of the potential judgement or settlement fees. Litigation funding has however branched out from this ‘pure’ form and is increasingly emerging as a useful tool for law firms and corporates.

Within the African narrative, litigation funding is likely to be beneficial to investors, funders, small and large businesses, and to those marginalised by the costs associated with entering the justice system.

Litigation funding is only in its infancy in Africa, but the potential for this investment vehicle to grow into a multi-billion-dollar market on the African continent is undeniable.

This free report explores the global landscape of litigation funding and seeks to predict how litigation funding is likely to unfold in Africa. This is the first comprehensive analysis of litigation funding in Africa. The research has been done over 4 months and alongside Eminent Crisis Management from the UK, 4 Rivers – also based in the UK, and our research team based in South Africa.

Click here to access the full report.

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(This article is provided for informational purposes only and not for the purpose of providing legal advice. For more information on the topic, please contact the author/s or the relevant provider.)

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