RBG Holdings – the listed business that owns City law firm Rosenblatt and invests in its own cases – has launched a litigation funding business for other law firms to tap into.
The group used the float to raise money to finance its own litigation, but has created LionFish Litigation Finance as a new subsidiary, hiring Tets Ishikawa from Acasta Europe to head it.
The smallest of the listed legal businesses, RBG recently reported 2019 revenues of £24m, profit after tax of £6.2m and EBITDA of £9.4m – all substantial increases on the previous year – and a balance sheet of £42m.
It also said it had been unaffected by the coronavirus crisis in terms of workload.
Rosenblatt will provide assessment and advisory services to LionFish on litigation risks, thereby conflicting itself out from representing the claimants.
Where LionFish works with other law firms, Rosenblatt and LionFish will provide undertakings to respect the lawyer/client relationship as appropriate.
RBG said its corporate structure allowed it to be “nimble” and it would not have the “limited and restrictive” investment mandate “that many other funders operate with”.
Chief executive Nicola Foulston said: “Financing legal cases is not new to the legal industry, however, LionFish’s key differentiators are our ability to swiftly manage high-risk complex matters and, where required, restructure them for the UK market.
“Tet’s broad range of experience and industry knowledge, as well as his entrepreneurism and his ability to marry his technical financial engineering experience with the commercial dynamics of litigation, will be an asset to RBG as it looks to establish its litigation finance business as a premier player in the market.”
To date, RBG has invested in eight cases being run by Rosenblatt and there are currently six further cases under consideration for finance.