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Introductory Guide to Litigation Funding

This beginner's guide to litigation funding explores the basics of this financial support system and its importance within the framework of the UK legal system. Additionally, we'll delve into the investment opportunities available through KWS Litigation.


What is Litigation Funding?


Can you envision a scenario where a small enterprise or an individual finds themselves embroiled in the challenge of financing legal proceedings against major corporations and large businesses?


Recent events, such as the Horizon Post Office scandal depicted in the compelling docudrama, Mr Bates vs the Post Office, highlight the significance of litigation funding. In such cases, financial resources play a crucial role and can significantly influence and determine the outcome of legal conflicts with corporate giants.


Beyond facing formidable legal opponents, the expenses associated with litigation can be overwhelming, often resulting in disparities in access to justice.


To address these financial challenges, litigation funding has emerged as a solution. As such, KWS Litigation provides investors with an investment model designed to create a mutually beneficial outcome.


Litigation Funding in the United Kingdom


The United Kingdom has one of the world’s most developed third-party funding markets and in a time characterised by rising legal costs and intricate cases, litigation funding has become essential.


Acting as a strategic tool for overcoming financial obstacles, it provides access to justice, expedites legal processes, levels the playing field and increases the chances of favourable settlements.


The competitive landscape of the UK consumer litigation investment market is defined by dynamic growth, evolving regulations and increased investor interest. Furthermore, individual and institutional investors are exploring low-risk alternative investment opportunities to broaden their portfolios.


KWS Litigation possesses specialised expertise, a robust track record and a meticulous approach, strategically positioning the firm as a formidable player, well placed to attract a diverse array of litigation funders and investors.


Consequently, investing in litigation funding through KWS Litigation presents an excellent prospect for investors aiming to diversify their investment portfolio and achieve steady returns.


A Growing Niche Asset Class


Litigation Funding is a Growing Niche Asset Class

Research conducted by law firm Reynolds Porter Chamberlain LLP reveals the top 15 UK litigation funders reported record assets of £2.2 billion on their balance sheets in 2020/21, signifying an 11% increase from the preceding year.


Currently, the litigation funding market is witnessing significant growth, particularly in the demand for funding smaller cases. This presents an opportunity for investors to capitalise on a market that shows promise for sustained expansion.


Factors driving this growth include the surge in legal costs, increased awareness among law firms and investors about the benefits of litigation funding and favourable regulatory changes in the UK.


The framework governing litigation funding and consumer protection has also had a favourable impact on market dynamics. Recent regulatory changes and updates have streamlined entry into the market for new participants, including individuals.


KWS Litigation has extensive experience, a track record of successful resolution and a network and affiliation with accomplished enterprises. This grants the capacity to source viable consumer litigation cases—a pivotal competitive component.


Litigation Finance vs. Stock Market


An alternative asset class, the global litigation funding market size was valued at USD 13.4 billion in 2022 and is expected to reach USD 43.05 billion by 2033. As such, investors seeking alternatives to conventional markets are increasingly turning to litigation funding.


It offers features such as steady returns, low correlation with traditional markets and accessible entry points, making it an attractive investment option. KWS Litigation further enhances accessibility with lower minimum investment requirements.


Consequently, litigation funding via KWS Litigation means that investors can confidently pursue a low-risk investment option, benefiting from swift returns. Typical investment terms are approximately 12 months and ensure a relatively quick turnaround.


Why Invest with KWS Litigation?


Why Invest in Litigation Funding with KWS Litigation?

KWS Litigation enters the British legal landscape to represent consumers who were victims of mis-selling; everyday people and small businesses who are suffering from deceptive sales tactics and unethical practices.


The firm specialises in distinct categories of consumer litigation cases, including credit providers, financial institutions, energy brokers and energy providers.


KWS Litigation’s specialised expertise positions the firm as a competitive force, attracting a spectrum of cases and investors. Aiming to level the playing field for those seeking justice, this form of investment offers a low-risk, passive income stream that isn't directly tied to traditional financial markets.


Additionally, investors benefit from KWS Litigation's legal expertise, thorough case due diligence and comprehensive process management, supporting individuals with valid cases who lack the financial means to pursue legal action. Vital in providing the necessary capital, it ensures that a lack of funding doesn't impede or restrict otherwise viable claims.


Unique Features


KWS Litigation exclusively backs cases supported by an insurance bond provided by an FCA-regulated insurance broker, ensuring coverage for all expenses in the unlikely event of an unsuccessful outcome. This guarantee instils confidence in investors, protecting their capital and reinforced by oversight from fully regulated entities.


Moreover, this robust, disruptive and low-risk investment model fuels innovative solutions that are truly groundbreaking and rooted in the fundamental legal principles underpinned by the High Court.


As such, investors can enjoy exceptional returns surpassing those of traditional institutional investments, with regulatory oversight from fully regulated entities, including the FCA and SRA.


KWS Litigation possesses an investment model designed to create a mutually beneficial outcome and a win-win scenario for both investors and those pursuing justice.


Embarking on Litigation Funding


In conclusion, litigation funding emerges as an alternative investment avenue, offering investors steady returns and portfolio diversification.


KWS Litigation's focus on flexible entry points and robust safeguarding features make it an accessible and appealing choice for investors seeking to explore this dynamic market.


If you’re interested in learning more about the potential of litigation funding and how KWS Litigation can enhance your investment strategy, visit our FAQ page or contact KWS Litigation today.



Ready to explore your options and how this article relates to you?

KWS Litigation is here to help you navigate the legal landscape and optimise your financial future. Contact us today to learn more.


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