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German Litigation Funders Target the Small Fish to Make the Big Bucks

Litigation funders in Germany are adapting to the growing number of international litigation funding firms setting up shop in the country, and developing their own cash streams.  

Large international funders are expanding their activities in Germany and even opening offices in the major cities, as did Deminor back in May. 

While the big, mostly non-German funders predominately finance mass claims, especially shareholder cases, a large group of smaller German funders focus on taking on individual claims with a value ranging from EUR 10K – 50K. 

These smaller funders operating outside the main German cities tend to focus on a specific type of litigation such as consumer cases or bankruptcy claims, and other low-value claims. These funders, like Armida and B&K Prozessfinanzierung, are taking the same high percentages of any judgement award or settlement, like their large competitors, but are targeting an untapped market, where the claims are smaller, but can be litigated more quickly. 

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