Commercial litigation funders enjoyed a quiet but healthy 2021, with the U.S. market largely free from any existential crises that could put new pressure on their business model.

“People have been trying to take stock after last year,” said Zachary Krug, a U.S.-trained litigator who recently joined London-based Signal Capital Partners to lead its litigation funding unit. Even amid surprise that “there wasn’t as great of a tsunami of Covid-related litigation as some expected,” he was pleased that “even though inflows took a dip in the early part of 2020, for the most part funders were able to find good opportunities and have relatively good deal flow.”