Third-party funder Therium Capital Management has generated a return of double the investment on cases closed in the first six months of its financial year, new figures have shown.
In a report to the stock market, City of London Group plc (COLG), which has a 50% stake in the funder, said that in the six months to 30 September 2014 Therium has had four cases resolved, winning three and settling one with a partial loss.
Therium’s investors put £4.5m into these cases, which generated a return of £8.8m.
Therium’s profit before tax for the period was £304,000 – as against a loss of £240,000 in the first half of 2013/14 – “the improvement reflecting performance fees earned in the period on positive case results”, COLG’s market announcement said.
It added: “In August 2014 Therium was pleased to be appointed as litigation advisor to a newly established fund of €7m.”
In July COLG announced that it had been working with the management of Therium to identify a new investor to acquire its stake and to develop further the litigation funding business. “Good progress has been made in this search and exclusive negotiations with a potential new investor are at an advanced stage. We hope that a transaction will be concluded shortly.”
Novitas, Therium’s 50% owned associate, which extends secured lending to law firms and their clients “has continued to deliver strong growth in its loan book and profits”, the report added.