The number of new cases filed at German civil courts has declined noticeably in recent years. The reason is rarely
, they receive a contractually agreed share of the proceeds. If it is lost, the claimant pays nothing. that fewer disputes exist. Often, a legitimate claim simply never gets pursued because of the cost risk: under § 91 ZPO, the losing party must pay not only its own legal and court costs, but also the winning party’s costs.
This is exactly where litigation funders step in. They cover the costs of the proceedings and, with them, the financial risk. If the case succeeds
This article explains what a litigation funder does, what it costs, who covers the opposing party’s legal costs, which providers are active in Germany in 2026 — and how AEQUIFIN differs from traditional litigation funders.
At a Glance
- A litigation funder covers the costs of the proceedings in exchange for a share of the proceeds.
- If the case is lost, the litigation funder bears the entire cost risk — including the opposing party’s recoverable costs under § 91 ZPO.
- Success fees in the German market are typically between 20 and 40 percent, usually tiered by the size of the proceeds.
- Traditional direct funders generally require a minimum claim value of €50,000 to €100,000.
- Most providers do not publish their fee; it is negotiated individually after case review.
- AEQUIFIN operates as a marketplace: multiple sponsors fund a case together, and the fee is set through a transparent bidding process.
1. What Is a Litigation Funder?
A litigation funder is a company that covers the costs of a legal dispute and, in return, receives a share of the amount recovered if the case succeeds. It is not a lender: there is no interest, no installments, and no obligation to repay anything if the case is lost.
Costs typically covered include:
- Court fees
- the claimant’s own legal fees
- expert witness and appraisal costs
- witness expenses
- the opposing party’s recoverable legal costs if the case is lost
What Are the Key Characteristics of a Litigation Funder?
No financial risk for the claimant. If the case is lost, the litigation funder covers the costs it agreed to finance. There is no obligation to contribute further funds.
Paid only on success. The funder receives its agreed share only if money is actually recovered — through a judgment or a settlement.
Assessment before approval. Before agreeing to fund a case, the funder reviews the prospects of success, the opposing party’s ability to pay, and the case’s economic viability. A success probability of roughly 60 to 70 percent is typically required.
The claimant retains control. The funder does not conduct the litigation itself. Decisions about the claim, settlement, and any appeal remain with the claimant and their lawyer — not least because handling someone else’s legal matters requires a licence under the Legal Services Act (§ 4 RDG).
This allows legitimate claims to be pursued without having to pre-finance the sometimes high costs of legal proceedings.
2. What Does a Litigation Funder Cost?
A litigation funder does not charge a fee upfront. Its compensation is the success fee — a percentage of the proceeds actually recovered.
In the German market, this share is typically between 20 and 40 percent. A tiered structure is common — a higher percentage on the first portion of the proceeds, a lower one above that, for example 30 percent up to €500,000 and 20 percent on anything above. On the upper end, the European Parliament’s resolution on responsible private funding of litigation recommended a cap of 40 percent.
Three points are regularly overlooked:
- The fee applies to the amount actually recovered, not the amount originally claimed. Someone who sues for €1 million and settles for €400,000 splits €400,000.
- A settlement triggers the fee just as a judgment does.
- Most providers do not publish their fee. FORIS states on its own website that the size of its share is “agreed individually”; Omni Bridgeway describes its terms as “tailor-made.”
For claimants, this means the actual terms are only confirmed after a case-by-case review and are difficult to compare across providers in advance.
3. Who Pays the Opposing Party’s Legal Costs?
This is the most important question — and the point where litigation funding differs from a loan.
Under § 91(1) ZPO, the losing party must bear the costs of the proceedings and reimburse the opposing party for the costs necessary to pursue its case. Someone who sues without funding and loses therefore pays twice: their own costs and the other side’s.
With litigation funding, the funder takes on this risk. If the proceedings produce no recovery, the funder covers court fees, its own legal fees, expert witness and witness costs, and the opposing party’s recoverable costs. The claimant pays nothing.
For AEQUIFIN: [Editorial: add the exact scope of coverage for opposing-party costs here] The exact scope is set out in the funding agreement; before signing, it is worth confirming whether coverage extends to appeal stages.
4. How Does Litigation Funding Work?
The process generally follows four steps.
- Submit the case. The claimant describes the facts, states the claim value, and submits initial documents. At AEQUIFIN, this happens digitally through the Case Inquiry Tool.
- Review. The litigation funder assesses the prospects of success, the opposing party’s creditworthiness, and economic viability. Traditional providers do this manually through legal professionals, which can take several weeks. AEQUIFIN uses an AI-supported process and delivers an initial assessment significantly faster.
- Funding agreement and fee. The claimant and the funder agree on the participation rate. At traditional providers this is negotiated bilaterally; at AEQUIFIN it is set through the quota balancing process.
- Proceedings and payout. The case proceeds, and the claimant retains full control over the claim. If successful, the proceeds are distributed according to the agreed rate.
IN JUST 5 MINUTES:
In just 5 minutes: Become a sponsor – Your entry into attractive litigation financing opportunities
1
Register as a sponsor
2
Select a case
3
Set the bid amount and quota
4
Provide PayPal or credit card details
5
Participate in the litigation proceeds
5. Which Litigation Funders Operate in Germany in 2026?
The German market splits into two models. Traditional direct funders use their own capital and decide internally on every case. Marketplace models connect claimants with multiple sponsors who fund a case together.
| Provider | Model | Minimum Claim Value (Germany) | Success Fee | Target Group |
| AEQUIFIN | Marketplace with quota balancing | no fixed minimum published | set through a bidding process; visible before the contract is signed | Individuals, companies, law firms |
| FORIS AG | Direct funder | €100,000 (Austria €250,000, Switzerland €500,000, other countries €1 million) | not published – its own website states it is “agreed individually” | Companies, law firms |
| Omni Bridgeway | Direct funder (commercial + consumer) | Commercial: individual; consumer: typically €2,000–5,000 | not published – described as “tailor-made” | Institutional clients, companies, consumers |
| LEGIAL AG (ERGO) | Direct funder | on request | not published | Companies, law firms |
| Nivalion AG | Direct funder | on request | not published | Companies, institutional clients |
| Burford Capital | Direct funder | on request (large cases) | not published; media reports have cited around 30% | Institutional clients, large companies |
Note: Roland ProzessFinanz AG, still listed as an independent provider in many older comparison tables, was acquired by Omni Bridgeway in 2019.
What Makes AEQUIFIN Different as a Litigation Funder?
AEQUIFIN is not a traditional direct funder but a marketplace. Rather than deploying its own capital, the platform connects claimants with sponsors willing to fund individual cases. Funding for a case is distributed across multiple sponsors, each contributing part of the litigation budget.
At the core of the model is the quota balancing process. Sponsors submit bids, specifying how much they want to sponsor and what share of the proceeds they expect in return. AEQUIFIN calculates a distribution that takes all bids into account. Unlike most direct funders, the fee is therefore not the result of a bilateral negotiation but of an open bidding process — and is visible before the contract is signed.
Further differences from traditional providers:
- access for smaller claim values and for private individuals
- a fully digital submission process
- AI-supported case assessment instead of weeks of manual review
- a transparent case overview showing the litigation budget, claim value, and funding progress
- AEQUIFIN Sponsor Protection: if the litigation proceeds turn out unexpectedly low, sponsors’ participation rate increases automatically
6. Litigation Funder or Legal Expenses Insurance?
Both reduce cost risk, but at different points in time. Legal expenses insurance must already be in place before the dispute arises, and it costs an ongoing premium. A litigation funder can still be brought in once the conflict already exists, costs nothing upfront, and is paid only a share of the proceeds if the case succeeds. Compared with state legal aid, litigation funding also involves no means test and no repayment obligation.
→ Related: “Litigation Funding or Legal Expenses Insurance: What’s the Difference?”
7. When Is a Litigation Funder the Right Choice?
Litigation funding may be suitable when three conditions are met.
First: clear prospects of success. The claim must be legally sound and supported by evidence. A 50/50 chance is not enough for most funders.
Second: a solvent opposing party. A judgment won against an insolvent party has no economic value.
Third: a sufficient claim value. The expected proceeds must economically justify the cost of the proceedings.
Anyone unsure whether their case meets these criteria can get an initial read using AEQUIFIN’s litigation cost calculator.
Have your case reviewed — free and without obligation.
At AEQUIFIN, you submit your case digitally and receive a fast initial assessment. Only once a case has been reviewed and funded does it become visible to sponsors.
Submit a case → /de/registration · Litigation cost calculator → /de/litigation-cost-calculator
