Niche Investment Strategy
UK Litigation Funding
The UK litigation funding market has experienced significant growth in recent years, more than doubling in size over the past three years. As of the latest data, the UK litigation funding market is valued at approximately £2.7 billion. This rapid expansion has been driven by increasing investor demands in alternative assets uncorrelated with traditional financial markets, such as equities.
Overall, the UK remains one of the leading global markets for litigation funding, with strong prospects for continued growth, driven by both domestic demand and its role as a hub for international legal disputes​»
Niche Investment Strategies
Litigation Finance/Funding
In general terms, Litigation Funding means that a party to a litigation case has its legal fees paid by someone else. As a standard process the litigant obtains funding to cover legal cost by a private litigation funder on a no win-no-repayment basis. Therefore, only cases with a good prospect of success tend to get any funding.
US Litigation Model
Mainly covering claims that are going to be decided by a court.
→ Duration and outcome are unknown
​
Only covering precedent-based legal cases already ruled by a UK Court or claims under Government compensation schemes.
→ Duration and outcome are predictable
UK Litigation Model Yield Giants
Yield Giants
Our partner has identified a significant gap in the market to assist solicitors' practices, that cannot fund either the cases available to them or their disbursements. Our partner sees a clear investment opportunity to deploy capital through secured lending with full recourse to SRA-regulated law firms, which then pursue and process the claims. Each borrowing law firm is obligated to repay the funds as a liability, including interest and fees, regardless of the outcome of any individual case.
Our partner operates in a market where traditional bank financing is generally not available. Key characteristics of our partner’s litigation funding business:
Investment Case
UK Litigation Funding
Only small legal claims with predictable outcomes under case law, legislation or government schemes. Strict portfolio diversification across claim types with a max. 30% / long-term exposure target of 11%. Claim types are Plevin claims (PPI), housing disrepair, financial services, business energy claims or PCP car finance. Only legal claims against liquid entities e.g banks, housing authorities or utility companies etc..
Loan period in line with the weighted average portfolio duration 12 - 18 months. Loans are senior-secured. The case portfolios are the collatoral securing the loans. Each law firm owes the money as a debt, with interest and fees, regardless of the outcome of any individual case.
Only to UK Solicitors Regulation Authority-certified law firms passing extensive initial/ongoing due diligence incl. full AML/credit check on solicitors/firm, account review, cash flow analysis/projections, ATE verification etc. Collateral security over all law firm assets minimum with a minimum level of debt cover of 1.5 times the loan value.
Security is held by an external, independent Security Trustee.
High safety margin and robust security ratio of 2.64: 1 (security against lending/capital deployed) and 3.52:1 (security against claims held) whereby every funded claim is highly conservative valued and recorded/reconciled by an independent case management and auditing platform and cross-checked by a third party audit company resulting in security calculations verified by external vlauation provider.
*Verified on 24 June 2026 by the auditor, Anstey Bond LLP, in accordance with ISAE 3000 (Revised)
Yield Giants - UK Litigation Funding
7 Stars Legal Funding
£ 27.9m
Loans agreed
£ 66.7m
Security against Claims held
0%
Default Number on Repayments/Interest Payments
£18.95m
Loans deployed
2.64 : 1
Ratio Security vs. Capital deployed
6
Partner Law Firms
£ 50m
Security against Lending
75'000+
Claims funded
8
Case Types
Track Record / Key Facts (July 2026)
£ 27.9m
Loans agreed
£ 18.9m
Loans deployed
£ 66.7m
Security against
Claims held
2.64 : 1
Ratio Security vs Capital Deployed
0%
Default number on Repayments/Interest
Payments
6
Partner Law Firms
£ 50m
Security against Lending
75'000+
Claims funded
8
Case Types