Litigation funding has been around for more than a decade, but in terms of legal history it is an extremely new development in western law. Historically, champerty – an agreement by a third party to fund a lawsuit in return for a share of the plaintiff's proceeds – has been outlawed. However, over the 20th century, this ruling was abolished throughout Australia. As a result, litigation funding is no longer unlawful, and a new type of legal financier has emerged.
Companies operating in the industry have similar characteristics to financial intermediaries in that they source funds from capital markets for investment into lawsuits.
Firms in this industry fund litigation and earn a commission, which is a portion of the settlement or judgment proceeds. The industry excludes lawyers and any companies providing legal services.
The report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecast, growth rates and an analysis of the industry key players and their market shares.