$15.2B
estimated assets under management in the U.S. commercial litigation funding market — 2025
3.5x
higher average settlement demand in TPLF-backed cases vs. non-funded cases of comparable facts
82%
of large U.S. law firms now use litigation funding in at least some cases — up from 28% in 2017
$67B
projected TPLF market size by 2037 at current growth rates — Westfleet Advisors
The Opening Argument
Third-party litigation funding has changed the economics of commercial property litigation in ways that most property operators have not yet understood.
When a plaintiff has a litigation funder, they are not negotiating under financial pressure. They do not need to settle quickly because their attorney is working on contingency and needs cash flow. They do not face the prospect of a prolonged case depleting their resources. The funder has evaluated the case, committed capital to it, and is managing it toward the outcome that maximizes their return.
Understanding third-party litigation funding — how it works, who the major players are, and how it changes case dynamics — is now essential knowledge for any property operator with meaningful excess liability exposure.
The Scale of the Market
What the TPLF market looks like — and where it is going
$15.2B
Estimated current assets under management in the U.S. commercial litigation funding market
Westfleet Advisors 2025
$67B
Projected TPLF market size by 2037 at current growth rates
Swiss Re Institute 2025
82%
of large U.S. law firms now use litigation funding in at least some cases — up from 28% in 2017
Burford Capital Annual Survey 2024
3.5x
higher average settlement demand in TPLF-backed cases versus non-funded cases of comparable facts
Marathon Strategies 2024
How TPLF Changes Case Dynamics
What changes when your plaintiff has a litigation funder
Litigation funding does not just change the economics of a case — it changes the strategy, the timeline, and the settlement dynamics in ways that directly affect how defendants should respond.
Settlement pressure disappears. Traditional settlement leverage depends on the plaintiff's need for financial resolution. Litigation funding eliminates that pressure — the plaintiff can wait as long as the case economics support it, because the funder is managing cash flow. Cases that would previously have settled early for reasonable amounts are now proceeding to trial.
Demands are calibrated to funder return requirements. Litigation funders require a minimum return on their investment — typically 3-5x their capital commitment. This means that in funded cases, settlement demands are set not by the plaintiff's assessment of fair compensation but by the funder's return requirements. Demands in funded cases are systematically higher than in unfunded cases of comparable facts.
Case strategy is more sophisticated. Litigation funders conduct due diligence before committing capital — evaluating the legal theory, the evidence, the jurisdiction, and the defendant's assets and insurance. Cases that attract funding have been vetted by professionals whose business is predicting litigation outcomes. This is a meaningful signal about case quality from the plaintiff's perspective.
Disclosure is frequently not required. In most U.S. jurisdictions, defendants have no right to know whether their plaintiff has litigation funding — or who the funder is. This means that the change in case dynamics described above may be occurring without the defendant's knowledge. Recognizing the markers of funded litigation is now a necessary defense skill.
TPLF in Property Litigation
How litigation funding targets commercial real estate, habitational, and hospitality defendants
Commercial property litigation has become an attractive market for litigation funders because property defendants typically have identifiable assets, substantial insurance coverage, and reputational concerns that create settlement pressure. The combination of clear collectability and leverage-friendly characteristics makes property cases a reliable funding target.
Commercial Real Estate
Premises liability cases involving security incidents and significant injury attract funding because the liability narrative is straightforward and the defendant's assets are identifiable. Institutional property owners are particularly attractive targets because their balance sheets are transparent through public records.
Habitational
Tenant safety and habitability cases are increasingly attractive to funders, particularly in jurisdictions with active plaintiff bars and favorable jury pools. Cases involving multiple plaintiffs — building-wide claims — are especially fundable because they allow funders to spread investment across a larger potential award.
Hospitality
Guest injury and security incident cases at branded hotel properties attract funding because brand affiliation creates both reputational leverage and a perception of deep-pockets collectability. Cases involving national or international hotel brands are among the most consistently fundable in the property segment.
The Alliance Perspective
How the Alliance addresses TPLF intelligence for its members
The Verdict Risk Alliance monitors the third-party litigation funding market as it affects commercial real estate, habitational, and hospitality litigation — including the major funders active in property-related cases, the jurisdictions where TPLF activity is most concentrated, and the case characteristics that most reliably attract funding.
Alliance members have access to TPLF intelligence resources through the member platform, including plain-language explanations of how to recognize the markers of funded litigation and how funded case dynamics should affect defense strategy and settlement evaluation.
The most effective response to TPLF is an organization that is a difficult litigation target — with documented operational standards, strong incident response protocols, and a record of active risk management. Funders evaluate defendants before committing capital. Organizations that can demonstrate genuine operational preparedness are less attractive funding targets than those that cannot.
For more information on Alliance membership and resources, visit
"A major contributor to frequency and severity of loss in casualty lines is litigation as a business, driven by an aggressive trial bar and turbocharged by litigation funding — a multibillion-dollar global investment class that allows investors who have suffered no harm to pay litigation costs on behalf of the plaintiff in exchange for a cut of a favorable settlement."
Evan Greenberg, Chairman & CEO, Chubb Limited — 2022 Annual Letter to Shareholders
Market Growth
U.S. Litigation Funding Market — Assets Under Management
Source: Westfleet Advisors 2025. Law firm adoption: 28% in 2017 → 82% in 2024 (Burford Capital Annual Survey 2024)
verdictriskalliance.org.
