Litigation funding is an area of continual growth. As the Government makes increasing cutbacks to legal assistance, the private sector has been encouraged to fill the gap.

A case will appeal to a funder where:

• the claim is strong
• the potential recovery is at least six figures
• the opponent is ‘good for the money’
• the legal team is experienced

Typically, in return for taking the risk, the funder will want 25% to 40% of sums recovered from your opponent (whether at settlement or after a trial).

Invariably, the funder will insist that you take out ATE insurance to cover the risk of an adverse costs order against you (which the court may insist the funder is responsible for). If ATE is a requirement, the funder will usually pay for the premium as part of the facility offered to you.