"In 2025, the share of law-firm-directed deals decreased by 10%, indicating a significant shift in the landscape of litigation funding as firms adapt to new financial strategies."
"Litigants are more likely to work directly with third-party funders to secure backing for their claims, reflecting a change in the dynamics of litigation financing."
"The industry reported 39 active litigation funders with $2.8 billion in new deal commitments and a total of 346 new deals, showcasing a robust funding environment."
In 2025, BigLaw firms reduced their reliance on third-party commercial litigation funding, with a 10% drop in law-firm-directed deals. Despite a rebound in capital commitments to new deals, litigants are increasingly opting to work directly with third-party funders for financial backing. The industry saw 39 active litigation funders committing $2.8 billion to 346 new deals, indicating a shift in how litigation financing is approached by law firms and litigants alike.
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