Affiniti Finance – which specialises in loan-based funding to support litigation – has unveiled plans for huge expansion after a £250m capital raise backed by an unnamed “multi-billion-dollar” US-based fund.
It said the cash injection would allow the firm to focus on a “significant book build of mid-range loans specifically in the financial mis-selling and personal injury sector”.
Affiniti is currently invested in more than 5,000 litigation matters, but it expects this number to increase 10-fold by the end of 2021.
It funds a broad spectrum of consumer cases, including mis-sold mortgages and self-invested personal pensions, Japanese knotweed and housing disrepair. The personal injury products cover both injury and negligence claims, while its life & rehabilitation loan provides interim funding for claimants in need of emergency personal financial assistance before their claim is settled.
Affiniti is also providing additional funding options to law firms for so-called Plevin PPI cases, where funding is available on a law firm lend structure direct to the approved panel firms.
Chief executive Ian Cunningham said: “This new debt line provides a significant increase to our available capital and a boost to our investment capability. This enables us to broaden and accelerate the expansion of our portfolio, with a view to ultimately delivering more funding to those that need access to justice.
“We are continuing our capital raise for our new commercial litigation division, which will see a further £150m available for large ticket commercial transactions. We are expecting to close this raise by the fourth quarter of this year.”
The commercial division works on high-value individual claims, group/class actions, insolvency and portfolio lends.