Litigation Funding Investment Market Analysis

Form Type Segment Analysis

Commercial litigation is projected to hold 59.31% of the global litigation funding investment market by 2036, making it the dominant segment due to its high-value claims and strong demand from corporations seeking capital-efficient dispute resolution. Businesses increasingly prefer external funding to manage cash flow, avoid litigation-related financial strain, and shift legal risk to third-party funders. Complex disputes involving antitrust, intellectual property, contract breaches, and cross-border commercial conflicts attract significant investor interest because of their large settlement potential. Moreover, global corporates are adopting litigation finance as a strategic tool to pursue meritorious claims without burdening balance sheets. As corporate awareness grows and funders expand their due diligence and risk assessment capabilities, the commercial litigation segment continues to accelerate the market’s overall expansion.

Enterprise Size Segment Analysis

Micro, Small, and Medium Enterprises (MSMEs) are becoming a major force behind the expansion of the enterprise-size segment in the litigation funding investment market, supported by an expected CAGR of 8.81% by 2036. Limited liquidity and restricted access to traditional financing often prevent MSMEs from pursuing meritorious legal claims, making third-party funding an essential tool for managing legal risk. As disputes related to contracts, intellectual property, and commercial transactions rise, funded litigation enables MSMEs to protect business interests without diverting operational capital. The growing formalization of MSMEs worldwide, supported by government programs that encourage dispute resolution, further increases the pool of eligible claimants. Additionally, funders increasingly view MSME disputes as attractive due to manageable claim sizes, faster case cycles, and high settlement rates, collectively strengthening the segment’s long-term growth.

Funding Structure Segment Analysis

Portfolio funding is strengthening the growth of the funding-structure segment as investors increasingly prioritize diversified, risk-balanced legal finance models. By spreading capital across multiple cases rather than relying on the outcome of a single dispute, funders significantly lower their exposure to loss and improve the likelihood of stable returns. This risk-mitigation advantage has made portfolio arrangements especially appealing to law firms handling high-value commercial, antitrust, or IP cases, where bundled financing supports broader litigation strategies rather than one-off claims. At the same time, portfolio funding enables firms to pursue meritorious but capital-intensive cases without cash-flow restraints, increasing overall demand for litigation finance. As investors seek more predictable yield profiles in an otherwise volatile legal environment, portfolio funding continues to emerge as one of the most scalable and attractive models in the litigation funding investment market.          

Our in-depth analysis of the global litigation funding investment market includes the following segments: