Calunius secures extra £50m to invest in litigation and arbitration

Perrin: sophisticated global investors have got the message of litigation funding

Leading third-party litigation funder Calunius Capital has raised an extra £50m to fund litigation and arbitration after closing its second fund with new cash from both existing and new institutional investors.

It adds to the £40m that was raised by the Calunius Litigation Risk Fund 1, which was launched in December 2010. Both funds are based in Guernsey.

Mick Smith, a partner and co-founder of Calunius Capital, said: “We’re delighted to welcome major new institutional investors to Calunius Fund 2. They recognise that litigation funding is now achieving a very wide degree of acceptance from the CFOs and GCs of the most solvent companies, who view litigation funding as a desirable risk management tool that can reduce or eradicate the major financial risks that are involved in complex litigation and arbitration.

“For these businesses, Litigation Funding is increasingly seen as a rational commercial choice, capable of turning the claims element of an in-house legal team from a cost centre into a profit centre.”

Calunius chairman Leslie Perrin – who said chairs the Association of Litigation Funders – added: “During the last decade, the attitude of all stakeholders in the extraordinary global industry that is dispute resolution has evolved towards acceptance and encouragement of litigation funding as a means of securing access to justice and as a desirable tool in the management of the financial and other risks involved in litigation and arbitration.

“This is true in the UK, Australia, Canada, New Zealand, Jersey and other offshore jurisdictions and in most states in the USA. In the civil law jurisdictions of Europe, litigation funding has been completely accepted since its emergence more than a decade ago.

“Calunius is proud to be part of this process and to be able through this successful fundraising resoundingly to show that sophisticated global investors have also got the message of litigation funding.”

The first fund’s highest-profile investment to date is funding the Elvis Presley estate in its action over unpaid royalties against a German label owned by Sony, which is now in the German Federal Supreme Court.

Other cases include international arbitration proceedings against the governments of Uzbekistan and Venezuela in connection with unlawful expropriations of the assets of listed gold-miners Oxus Gold and Rusoro Mining. It has also made several investments in private recovery actions by victims of cartels.

Calunius said its cases have been heard all over the world, including in London, Paris, Washington and Munich.

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