Third-party litigation funding (TPLF) is a financial
arrangement under which an external investor provides capital to
cover the costs of legal proceedings in return for a share of the
proceeds if the case succeeds.
Current status of litigation funding
The UK and the Netherlands are the most mature TPLF markets,
where funding is widely used in commercial litigation, arbitration,
competition damages, insolvency, and large-scale group actions.
Australia and Canada also have a long-standing acceptance of TPLF,
particularly in class actions and insolvency. In contrast, TPLF in
the United States is a more recent development on a broad scale,
but it is growing rapidly, especially in complex civil litigation
and international arbitration.
