The UK litigation funding market has spent significant time responding to PACCAR and the legal uncertainty around Litigation Funding Agreements.
The Civil Justice Council published its final report on litigation funding on 2 June 2025. The UK government has since indicated that it intends to clarify the position of Litigation Funding Agreements. That matters for market confidence, but it does not remove the operational question for funders.
If funding structures become clearer, the next question is whether funders can evidence governance across live portfolios.
From structural uncertainty to operational oversight
PACCAR focused attention on the enforceability and structure of funding arrangements. For funders, lawyers and funded parties, that was a threshold issue.
But once the market has more clarity on the structure of Litigation Funding Agreements, attention naturally moves to the way those arrangements are governed in practice.
Funders still need to know:
- Are funded cases progressing in line with mandate terms?
- Are law firms providing the evidence required under the funding arrangement?
- Are exceptions being logged and resolved?
- Are risk signals visible across firms and matters?
- Can the funder demonstrate oversight to investors, boards or internal governance committees?
Those questions cannot be answered by contract drafting alone. They require an evidence-led operating model.
Why mandate evidence matters
Mandate terms often describe how a funded portfolio should be managed. They may cover reporting cadence, cost controls, case progression evidence, document standards, risk escalation and review obligations.
The problem is that mandate compliance can become difficult to evidence once cases are live. Law firms may hold relevant case documents in their own systems. Audit teams may track review activity separately. Funders may receive narrative updates that are useful but hard to verify consistently.
That creates a gap between mandate design and mandate evidence.
What funders should build now
Funders preparing for a more stable post-PACCAR funding environment need controls that scale across firms and matters.
That includes:
- A clear view of which matters are in scope for review
- Structured audit cycles tied to funded cases
- Evidence requests linked to mandate requirements
- Exception logs that show what is open and what has been resolved
- Case-level audit trails that can support portfolio-level reporting
- Access controls that preserve confidentiality between firms, auditors and funders
The point is not a heavier audit process. The point is a visible record of oversight.
How Lexivoa tackles this
Lexivoa Mandate helps funders connect mandate requirements to live portfolio oversight.
Lexivoa Assurance supports the review layer underneath: evidence requests, document checks, findings, reviewer activity and sign-off. Lexivoa Connect helps bring firm-side case context back into the audit layer, reducing the need for manual evidence packs and repeated chasing.
AI-assisted review triages evidence gaps and highlights materials that may not match expected review criteria. It supports completeness checking and reviewer focus, while legal and governance decisions remain with the funder and audit team.
That gives funders a clearer post-PACCAR operating model: funding terms, audit activity, evidence trails and portfolio reporting in one review process instead of several disconnected workstreams.
The next control question
Market-wide legal clarity is important. But for individual funders, governance still depends on evidence.
The practical question is no longer only whether the funding arrangement is structured correctly. It is also whether the funder can show how the funded portfolio is being monitored.
For more on the portfolio view, see Portfolio Governance for Litigation Funders. For the compliance workflow, see Active Audit Compliance for Litigation Funders.
See how Lexivoa supports mandate evidence
Lexivoa helps funders connect mandate control, audit evidence, exception tracking and portfolio oversight.
See how Lexivoa supports post-PACCAR governance across funded legal portfolios. Request a walkthrough.
Sources: Civil Justice Council litigation funding review, CJC final report announcement, UK government litigation funding announcement.