Westfleet Advisors' 6th Annual Report Shows 16% Decline in New Capital Commitments as Market Shifts
The U.S. commercial litigation finance industry saw a 16% decline in new capital commitments in 2024, continuing a contraction first observed in 2023, according toThe Westfleet Insider: 2024 Litigation Finance Market Report. Despite the slowdown, demand remained strong, and leading funders maintained stable portfolios.
https://mma.prnewswire.com/media/1771736/westfleet_advisors_new_Logo.jpg
Westfleet Advisors, a premier litigation finance advisory firm, identified 42 active capital providers managing $16.1 billion in assets. Total new capital commitments are now nearly 30% below 2022 levels, primarily due to funders facing greater difficulty securing fresh capital amid broader financial market conditions.
For the sixth year, Westfleet conducted an in-depth analysis of the litigation finance market using direct funder data and public sources. The report remains the industry's most comprehensive resource on market trends and investment strategies.
“This is the first time we've observed consecutive declines in new capital commitments,” said Charles Agee, Founder and CEO of Westfleet Advisors. “The contraction is supply-driven rather than demand-related. Many funders are more selective with capital, while others have entered a harvest phase in a tougher fundraising environment.”
Key 2024 Trends:
•Larger Transactions:The average transaction size increased to $8 million, with single-case deals rising to $6.6 million and portfolio deals reaching $16.5 million.•Growth in Monetization Deals:Claim monetization accounted for 26% of new commitments, up from 21% in 2023.•Expansion in Patent Litigation Investments:Patent-related cases comprised 32% of total capital commitments, favoring portfolio financing over single-case deals.•Big Law's Growing Market Share:Big Law commitments declined to $850 million but increased to 37% of total capital commitments.•Insurance-Backed Deals:19% of commitments included contingent risk insurance, reflecting increased risk mitigation strategies.
About Westfleet Advisors
Westfleet Advisors is a leading firm dedicated exclusively to litigators and their clients who are exploring commercial litigation finance, with a focus on managing competitive fundraising processes for clients wishing to secure the best terms. Since its founding in 2013, Westfleet has been committed to bringing greater transparency and efficiency to the litigation finance market, helping stakeholders maximize the benefits of this essential form of capital. Our elite, multidisciplinary team consists of seasoned professionals who have substantial prior experience as litigation funders.
For more information, visitwestfleetadvisors.com.
Contact: Gretchen Lowe; glowe@westfleetadvisors.com
https://c212.net/c/img/favicon.png?sn=CL49919&sd=2025-03-26
View original content to download multimedia:https://www.prnewswire.com/news-releases/2-3-billion-committed-in-us-commercial-litigation-finance-amid-capital-contraction-in-2024–302411359.html
SOURCE Westfleet Advisors
https://rt.newswire.ca/rt.gif?NewsItemId=CL49919&Transmission_Id=202503260600PR_NEWS_USPR_____CL49919&DateId=20250326