SINGAPORE is viewed by many established litigation funders as one of the most exciting growth markets in the world. The opportunity for funders became a reality in 2017 when regulatory changes permitted the use of litigation finance in association with international arbitration disputes. This form of funding is quickly becoming part of the fabric of Singapore's arbitrations universe and we are now seeing discussions take place for it to be used for other types of disputes.

Recently, litigation finance has been brought even further into the limelight following the well-documented attacks by activist short-seller Muddy Waters on Burford Capital, the best-known funder globally. While largely focused on Burford's accounting methods and corporate governance, the hedge fund's accusations have raised concerns around the practices and legitimacy of the industry more broadly, which might cause concern in markets like Singapore, where its use is growing increasingly prevalent.

One key question raised is around whether funders should even be listed on a public market. More pointedly, why can companies with questionable governance practices, an unpredictable revenue forecast, and operating in an industry with limited access to a secondary market against which claims can be evaluated, be listed?