Overview

Unsettled: High revenue volatility leads to declining industry profit margins

IBISWorld’s Litigation Funding market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • Demand for industrial relations funding cases has fallen because unions tend to fund these disputes

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    Industry Analysis & Industry Trends

    Litigation funding has been around for more than a decade, but it is a comparatively new development in western legal history. Champerty, an agreement by a third party to fund a lawsuit in return for a share of the plaintiff's proceeds, has historically been outlawed. This law has been abolished throughout Australia over the past two decades, spurring industry growth. Industry firms have similar characteristics to financial intermediaries, in that they source funds from capital markets to invest in lawsuits. As industry firms derive a percentage of the settlement fee on the successful conclusion of the case, litigation funders are highly selective in the cases they fund.

    Industry revenue is expected to fall at an annualised 2.0% over the five years through 2016-17, to $89.2...

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    What is the Litigation Funding industry?

    The industry is in the growth stage of its life cycle. Industry value added (IVA), a measure of the industry's contribution to the overall economy, is forecast to grow at an annualised 5.0% over the ten years through 2021-22. This is an outperformance compared with the forecast annualised growth in GDP of 2.5% over the same period. High IVA growth compared with GDP growth indicates that the industry is growing faster than the overall economy. It also suggests that litigation funding is filling a substantial gap in the market.

    As is characteristic of a growing industry, the number of enterprises and employees in the industry is expected to increase, with the industry steadily expanding their funding activities to a range of litigation types. How...

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    Additional Insights for the Litigation Funding Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Litigation Funding Industry are

  • Portfolio management
  • Superior financial management and debt management
  • Capacity to objectively assess new investments
  • IBISWorld analysts also discuss how external factors such as Business bankruptcies and Demand from legal services in the Litigation Funding industry impact industry performance..

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    New Zealand Special Report

    Products & Brands

    Major products in this industry
    Investor-related lawsuits
    Consumer protection lawsuits
    Industrial relations lawsuits
    Other services
    Examples of brands in this Industry
    Bentham Capital LLC
    IMF

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Business bankruptcies
  • Demand from legal services
  • Work accident rate per 1,000 employees
  • Real household disposable income

  • Current Performance
  • Chart: Revenue Growth

  • Industry Outlook
  • Table: Litigation Funding Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Litigation Funding Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Professional, Scientific and Technical Services
  • Consumers

  • Key Selling Industries
  • Investment Banking and Securities Brokerage
  • Legal Services

  • Products & Services
  • Investor-related lawsuits
  • Other services
  • Industrial relations lawsuits
  • Consumer protection lawsuits
  • Chart: Litigation Funding Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Individuals
  • Small- to medium- sized businesses
  • Large businesses
  • Chart: Major Market Segmentation for the Litigation Funding Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Rent, utilities and depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Litigation Funding

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Litigation Funding Industry

  • Industry Globalization
    Major Companies
    IMF Bentham Limited
  • Table: IMF Bentham Limited - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Litigation Funding Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Litigation Funding Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Champerty
  • Champerty refers to third parties, such as litigation funders, 'buying into' a lawsuit.
  • Class Action
  • A lawsuit where a group or 'class' of people sues another party. Class actions are usually consumers suing a large business.
  • Maintenance
  • Maintenance refers to the involvement of a disinterested party, such as litigation funders, to encourage a lawsuit.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Litigation Funding:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Litigation Funding market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Litigation Funding, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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