Litigation Funding for UK Private Investors
Litigation funding finances legal claims in exchange for a share of any award. Learn how cases are selected, why returns are uncorrelated with markets, and the single UK platform open to private investors.
- 1
- active UK platforms
- £1k
- entry point
- 1–4 yrs
- case duration
- Very high
- risk · binary outcome
Litigation Funding in ten seconds
Drawn from the 1 UK platforms we track in this category and our editorial research.
- Typical investment
- £1k–£25k
- Investment horizon
- 1–4 years
- Liquidity
- None
- Risk
- Very high
- Return potential
- High
- Income
- None
- UK retail access
- Very limited
- Common structures
- SPVs, Scottish Limited Partnerships
What is litigation funding?
Litigation funding pays the legal costs of a claimant who cannot, or prefers not to, fund a case. If the case wins or settles, the funder takes a multiple of its outlay or a percentage of damages; if it loses, the funder loses everything.
Outcomes depend on courts, not markets, which makes it one of the few genuinely uncorrelated asset classes. It is also one of the least accessible: a single UK platform offers it to private investors.
The litigation funding lifecycle
- 01
Vet
Cases are assessed on merits, quantum and the defendant's ability to pay.
- 02
Fund
Investors finance legal costs via an SPV for a specific case.
- 03
Litigate
Solicitors and counsel run the case; ATE insurance may cover adverse costs.
- 04
Resolve
Settlement or judgment — typically 12–36 months.
- 05
Distribute
Funders receive their agreed return; losses are total if the case fails.
Three ways to get litigation funding exposure
Case-by-case SPVs
Choose individual vetted commercial claims; each is a binary outcome.
Funder portfolios
Diversified exposure across many cases via institutional funders — not open to retail.
Listed funders
Publicly traded litigation funders offer liquid, indirect exposure.
What returns look like
Binary: a successful case may return 1.5–3× the funding over two years; a lost case returns nothing. Diversification across cases is essential.
- Multiple
- Return on funding at resolution, typically 1.5–3×.
- Win rate
- Share of funded cases that settle or win.
- Duration
- Time to resolution — the biggest driver of IRR.
What can go wrong
Capital is at risk. Most litigation funding products are high-risk investments under FCA rules and may require an appropriateness assessment.
Total loss
A lost case returns nothing.
Adverse costs
Without insurance, funders can be liable for the other side's costs.
Duration
Appeals can extend cases for years, collapsing IRR.
Enforcement
Winning is not collecting — defendants may not pay.
Regulation
Litigation funding is largely unregulated in the UK; the 2023 PACCAR ruling unsettled funding agreements.
Concentration
Small investors cannot diversify across enough cases.
How UK investors can access litigation funding
From least to most accessible. Each route trades off minimums, liquidity and control.
Litigation funds
Institutional funders with diversified case books, £1m+.
Fund feeders
Rare; some wealth managers offer access to funder vehicles.
Listed funders
Publicly traded funders in an ISA or SIPP.
Case platforms
Case-by-case funding via SPVs from £1,000.
Private syndicates
Informal groups funding a single claim.
Litigation Funding platform in the UK
1 active · 0 closed or inactive
Go deeper on litigation funding
Litigation Funding questions
- Is litigation funding legal in the UK?
- Yes. Third-party funding has been permitted since the 1990s and is common in commercial disputes. It is largely self-regulated via the Association of Litigation Funders.
- What returns are typical?
- Successful cases often return 1.5–3× the funding; unsuccessful cases return nothing.
- How long does a case take?
- Twelve to thirty-six months is typical; appeals can add years.
- Can I lose more than I invest?
- Through an SPV your liability is normally limited to your investment; adverse costs are usually covered by ATE insurance — check each case.
- Is it regulated by the FCA?
- Investing in a case via an SPV is generally not a regulated activity; the platform itself may not be FCA-authorised.
- Is it suitable for most investors?
- No. It is a specialist, illiquid, binary investment for experienced investors allocating a small share of a diversified portfolio.
Other asset classes
Looking for the full list? Browse every litigation funding platform in the directory.
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