Jurisdiction(s):
United Kingdom

Litigation Funding for Insolvency Practitioners: Case Selection, Cost Structures (CFAs/DBAs/ATE), Funders’ Returns, Waterfalls, Champerty, and the Post‑PACCAR Landscape (England and Wales)

Published by a LexisNexis Restructuring & Insolvency expert

Practice notes

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What is it?

Third-party litigation funding (Funding) involves a separate entity (the Funder) advancing money to cover part or all of the litigation costs, in exchange for an agreed return if the matter is won or resolved by settlement. Although the idea of Funding is straightforward, it carries many subtleties and particulars, with choices that must be weighed and contrasted before identifying what suits a claim. Funding is specialised—the expense and eligibility thresholds mean a number of disputes do not qualify for Funding. The market of Funders is growing, with differing requirements and preferred investment niches. Funding itself is not regulated; however, many Funders belong to the Association of Litigation Funders (ALF) (the ALF website can be viewed here) and adhere to the ALF’s voluntary code of conduct. Numerous professionals who arrange Funding, including solicitors and brokers, are regulated. Any deployment of capital by a Funder will proceed under a litigation funding agreement (LFA), typically a long-form contract describing each party’s duties, and it is often supported by an undertaking from the solicitors representing the funded party. They set out each party’s obligations in detail, reflecting nuances and options to be considered and compared when carefully determining the best route...

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Mark Sands

Opus Business Advisory Group

Mark has nearly 40 years of experience in the insolvency profession, with more than 15 years as an appointment taking insolvency practitioner. Mark’s focus for the last 20 years has been on personal and contentious insolvency cases, with several years spent at a litigation funder reviewing insolvency claims for funding. Mark worked on several reported personal insolvency cases, which still influence insolvency practice today. Mark’s last few roles have had a national footprint as a result of which Mark is as well known in the regional centres as in London. At Opus Mark is leading and developing their personal insolvency offering....

Web page updated on 21/05/2026

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