Top litigation funder Burford Capital has put aside £10m for insolvency litigation as part of a strategic relationship with sector specialist Manolete Partners plc.
As part of the deal Burford will become a 16% shareholder in Manolete, which focuses on acquiring and funding insolvency litigation. The initial £10m is for co-funding investments.
Manolete was founded in 2009 and has seen growth of more than 100% each year since its formation. It is backed by Jon Moulton, one of the UK’s leading private equity investors, and P-Solve, the investment adviser arm of actuaries Punter Southall.
Manolete managing director Steven Cooklin said: “When I founded Manolete in 2009, after a successful corporate finance career at HSBC, I was intrigued with the unique opportunity to apply capital to the UK insolvency litigation market. Manolete has succeeded beyond my expectations, and Burford’s capital and strategic collaboration will enable us to take Manolete far beyond the next level.”
Christopher Bogart, Burford’s chief executive, said: “The UK insolvency litigation market is a unique environment. It is not yet subject to the Jackson reforms and it permits the direct purchase of claims. Manolete has done a superb job of developing this market and we look forward to working with Steven and his team to continue Manolete’s high growth strategy.”
Mr Moulton added: “Manolete has been very successful since I invested. This transaction with Burford, the litigation finance market leader, reaffirms my enthusiasm for Manolete.”
Manolete buys claims direct from insolvent companies and funds individual insolvency practitioners to pursue claims in their own name.
Manolete operates across the entire UK insolvency industry, where clients range from the large advisory groups including PwC, Deloittes, BDO, Grant Thornton, Begbies Traynor and RSM Tenon through to smaller regional firms and boutique operators such as Wilson Field, Moorfields, Leonard Curtis and Carter Clark.