Single-Case Litigation Funding: How to Fund One Claim
Non-recourse capital to pursue a single legal claim. Advised and arranged by Audley Capital; funded by third-party capital partners.
What is single-case litigation funding?
Single-case litigation funding is a financing arrangement in which a third-party funder covers the legal costs of pursuing one claim in exchange for a share of the recovery. It is non-recourse: if the case is lost, the funded party owes the funder nothing for the capital that was deployed.
Funding can cover solicitor and counsel fees, expert reports, disbursements and After-the-Event insurance premiums. The claimant and their legal team keep control of the litigation throughout.
When single-case funding is the right choice
Single-case funding tends to be the right fit when:
- You have one strong, high-value claim rather than a book of matters.
- Paying your own legal fees would strain cashflow or be commercially unattractive.
- You want to transfer the downside risk of the case to a third party.
- The claim would probably not be brought at all without external funding.
- You need certainty of funding to a defined budget rather than draw-down flexibility.
What makes a single case fundable
Legal merits
A clearly pleadable claim with strong prospects on the law and evidence.
Quantum
Damages large enough to justify the cost of the litigation and a fair return to the funder.
Damages-to-cost ratio
A healthy multiple between realistic recoverable damages and the total case budget — typically 8–10x or more at the outset.
Defendant solvency
A defendant that can actually pay a judgment or settlement.
Enforceability
A realistic route to enforce any award, including in the relevant jurisdictions.
Quality of legal team
An experienced solicitor and counsel team with a track record in the relevant type of claim.
The economics: what it costs and how the recovery waterfall works
The funder is paid only if the case succeeds. When proceeds come in, they typically flow in a fixed order — a recovery waterfall agreed in the funding agreement:
- 1Deployed capital first — the funder recovers the money actually spent on legal costs and disbursements.
- 2Then the funder's return — a multiple of deployed capital, a share of net recoveries, or the greater of the two.
- 3The remainder to the claimant. If the case fails, nothing is due to the funder.
Any pricing figures cited in market commentary or by individual funders are indicative only. Outcomes are never guaranteed and each offer depends on the specific case.
Single-case funding vs portfolio funding
If you have more than one claim, or a firm-level book of matters, portfolio funding may be a better fit. See our detailed guide to portfolio litigation funding for law firms and businesses.
| Feature | Single-case | Portfolio |
|---|---|---|
| Risk to funder | Concentrated on one outcome | Diversified across multiple matters |
| Pricing | Higher — reflects binary risk | Keener — reflects diversification |
| Minimum size | Usually £1m+ realistic damages | 3–5+ cases, £10–20m+ aggregate |
| Speed of approval | 6–12 weeks per case | Longer to arrange, faster to draw thereafter |
| Best for | One strong claim | Firms/businesses with a pipeline |
| Control of case | Retained by claimant and lawyers | Retained by firm; reporting to funder |
What documents you will need
To assess a case, a funder will typically want to see:
- A short case summary — the parties, the claim and the amount in dispute.
- Draft or issued pleadings and the key contractual or statutory documents.
- Counsel's opinion on merits and quantum (or availability of one).
- A costs budget through to trial, broken down by phase.
- A view on the defendant's solvency and enforcement route.
- Any existing insurance, funding or fee arrangements already in place.
For a full checklist, see documents needed for litigation funding.
The process and typical timeline
Week 1 — enquiry and NDA
Initial call, non-disclosure agreement, and a first look at the case summary.
Weeks 2–4 — preliminary review
The funder reviews merits, quantum and budget at a high level and decides whether to proceed to full diligence.
Weeks 4–8 — full due diligence
In-depth review with counsel, and interrogation of the budget and enforcement analysis.
Weeks 8–10 — investment committee
The funder's committee approves an indicative term sheet.
Weeks 10–12 — funding agreement
Documents are negotiated and executed; capital becomes available to draw.
Risks and due diligence
Litigation is uncertain. Even a well-prepared claim with strong merits can lose at trial or fail to recover in enforcement. No funder — and no adviser — can guarantee the outcome of a case.
A separate risk is adverse costs. In most UK litigation, the losing party is ordered to pay a significant portion of the winner's costs. Funding covers the claimant's own legal costs; it does not automatically cover adverse costs.
After-the-Event (ATE) insurance is commonly arranged alongside single-case funding to manage adverse-costs exposure. ATE reduces but does not remove risk. Read more about After-the-Event insurance.
Is my case fundable? A short checklist
- Realistic recoverable damages of £1m+ (higher is usually better).
- A damages-to-cost ratio of roughly 8–10x or more at the outset.
- A defendant that can actually pay a judgment or settlement.
- A clear route to enforce any award in the relevant jurisdiction.
- An experienced solicitor and counsel team already engaged or identified.
- A realistic budget through to trial, not just to the next stage.
For a deeper view of funder criteria, see is my claim suitable for funding?
How Audley Capital helps
Audley Capital is a litigation finance adviser and arranger, not a funder. We assess your case, work with you to prepare a strong submission, and run a structured process across our network of funders to secure competitive terms.
Funding decisions rest with the third-party funder in every case. We do not guarantee that funding will be offered, or that any particular terms will be available. See our litigation funding agreement explained guide before you sign.
Frequently asked questions
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