Litigation funder Juridica has announced that it intends to diversify its approach and extend its investments to law firm portfolio finance and arbitrations.
The AIM-listed funder, registered in Guernsey, currently specialises in mainly US antitrust and competition cases, which accounted for around two-thirds of its net proceeds last year, combined with commercial and IP cases, which accounted for around a third.
Launching Juridica’s financial results for the last calendar year, chairman Lord Brennan QC said the company had “generated a record amount of cash proceeds because of five settlements in our antitrust and competition portfolio”.
According to the statement, the settlements generated proceeds of $106m (£72m). It currently has $148m invested in 22 active cases.
Lord Brennan said Juridica was “the first to enter the litigation finance market” and “well-established and performing well in this market”, as demonstrated by the results.
“Litigation finance, particularly in the United States, is now at the next stage where scale and diversity are the challenges.”
In its contribution the financial statement, investment manager Juridica Asset Management said it aimed to create a portfolio “that remains based on business-to-business claims but is diversified across not only the three existing asset classes but also law firm portfolio finance, arbitrations, judgments and special situations…
“[A] more diversified portfolio will reduce the risk of adverse judgements in a particular investment whilst reducing the average time of investments, thus providing for more regular cash proceeds to the company and its shareholders.”
It added that it had “significantly expanded” its own team to “include more risk management and a broader range of legal expertise”.
Lord Brennan said that since its launch in 2007, Juridica had developed a portfolio of investments made up exclusively of “business-to-business related claim investments” in the sectors of antitrust and competition, patents and other forms of intellectual property and general commercial litigation.
He said the company did not invest in shareholder class actions, personal injury, product liability, or mass tort claims.
Lord Brennan said: “Although our recent returns are not indicative of future returns, they are a strong endorsement of the quality of the portfolio we have invested in and developed.
“Our investments have continued to mature throughout 2014. Our successes this year enabled the payment of substantial dividends. We continue to see significant opportunities to deploy capital. We look to the future with optimism and expect the portfolio to deliver attractive returns.”
A spokesman for Juridica said the firm’s clients included Fortune 1000 and FT Global 500 companies, inventors, universities and the law firms which represented them.
One of its notable new investments last year was in ProSports IP, a new joint venture with the National Football League Players Association, established to develop and monetise a large of patents in the technology and sports market in the US.