The UK insolvency litigation market has increased by 50% in the past four years to £1.5bn per annum, with litigation funding fast catching up with ‘no-win no-fee’ arrangements, research has revealed.
According to a report by Professor Peter Walton of Wolverhampton University, thevalue of insolvency claims has risen by 50% to £1.5bn since 2015. The study analyses the market since the Legal Aid, Sentencing and Punishment of Offenders Act 2012 came into force in respect of insolvency proceedings in 2016, when conditional fee arrangement success fees and after the event premiums were no longer recoverable from the defendant.
The report – commissioned by litigation funder Manolete Partners – found that half of professionals agreed that third-party funding is the most effective way to quickly resolve an insolvency claim. Meanwhile, three in five of insolvency practitioners have started to use third-party funders or use them more often than before. The study estimates the total value of claims being pursued through litigation funding is likely to be around £720m per year.
Manolete Partners (LON:MANO) work alongside IPs from all of the “Big Four” through to one and two partner specialist insolvency and restructuring practices in the regions. Manolete finances the work of the Insolvency Practitioner and their lawyers to make optimal recoveries for the creditor estates and takes on all the risk.
