Boutique litigation law firm Provenio has unveiled a £50m portfolio financing deal for high-value business litigation and arbitration claims with litigation funder Therium.
It will enable the firm to explore damages-based agreements for the first time, managing partner Mark Goodwin said.
Provenio was launched last year as an alternative business structure called Fortuna Law by a team from DLA Piper, with £1m in funding from an anonymous private investor.
It changed its name earlier this year after complaints from established company/commercial practice Fortune Law.
The firm said the anticipated global economic crisis following the Covid-19 pandemic was likely to see a surge in claims arising from failed investments, disputes in respect of long term, high value contracts which are no longer economically viable, and claims against counter parties, financial institutions, insurers and others (including professional advisers).
Mr Goodwin said: “The portfolio litigation funding agreement with Therium takes our business to a new level. We can offer clients a fully contingent fee arrangement backed by funding that takes the cash flow burden and financial risk out of the case but maintains a significant return for the client on a successful outcome.
“We believe this is a compelling offering to corporate clients and investors faced with the challenge of having to take legal proceedings to recover compensation and entitlements in high value and complex claims.”
Though the firm has not yet used damages-based agreements, Mr Goodwin confirmed it would now look at them.
Neil Purslow, co-founder and chief investment officer of Therium, added: “We have enjoyed a successful relationship with the Provenio team for many years and, since its launch last year, Provenio has distinguished itself in the competitive litigation market.
“We are excited to develop that relationship by making this investment to finance suitable claims under the stewardship of this excellent team.”