Litigation funder Therium has raised record new backing of £325m – just over a year after its previous highest raise of £200m – as demand for litigation and arbitration finance continues to grow.
Therium said the money was coming from three global institutional investors, including a sovereign wealth fund, and it expected to deploy the cash within two years.
Neil Purslow, co-founder and chief investment officer of Therium Capital Management, said: “The demand for our litigation and arbitration funding continues at pace across all of our jurisdictions.
“The benefits of funding are becoming increasingly widespread across the world; from claimants that would not otherwise have the capital to launch their claims, to the largest corporates that use funding to transform claims into financial assets.
“In line with this, we are seeing a steady rise of single case funding as well as litigation and arbitration financing across multiple dispute types.”
Therium recently opened an office in Australia to serve Asia-Pacific, and already has investment teams in the USA, Germany, Spain and Norway.
It is involved in several high-profile group actions, backing claims against the likes of Lloyds Banking Group, Volkswagen, Mastercard and Visa, and the Post Office, as well as a role in the truck cartel claim and TV presenter Noel Edmonds’ claim against Lloyds.
Last month, Therium launched a ground-breaking £1m fund to provide not-for-profit litigation funding in order to facilitate access to justice, supported by former Lord Chancellor Lord Falconer.
Meanwhile, AIM-listed funder Litigation Capital Management (LCM) announced today that it has entered into a global cooperation agreement with Clyde & Co.
The London-headquartered firm operates across six continents through a network of 50 offices and over 400 partners.
LCM has agreed to make available “significant funding” for disputes regardless of geography or jurisdiction, although the initial focus is on the UK, Australia, Singapore, Hong Kong and the Middle East.
Ben Knowles, partner and chair of Clyde & Co’s dispute resolution practices group, said: “Litigation funding has evolved from being a distressed purchase where funding is a necessity to being an active strategic choice across the disputes landscape.
“We have found that our clients are increasingly ready to talk to us about how dispute financing can help them manage disputes more effectively and reduce their financial exposure by moving risk from the balance sheet, whether they’re claimants or defendants.
“This arrangement gives us rapid access to capital and the ability to finance a range of work across our core sectors.”
LCM will also have a new non-executive chairman this week, when Jonathan Moulds take over. He was previously chief operating officer of Barclays PLC.
Also today, Woodsford Litigation Funding has opened an office in Tel-Aviv, the first of the big litigation funders to open an office in Israel.
It is looking to invest $20m in Israeli-sourced disputes in 2019/20 – around 10% of what Woodsford expects to commit globally in the year.
Yoav Navon, who was previously a consultant to Woodsford, has been named its director of litigation finance in Israel.
He said: “I can see the appetite for and understanding of the benefits funding offers is growing rapidly here. We are already funding a number of Israeli parties in high stakes litigation, and we see real potential for growth, particularly in intellectual property litigation and international arbitration.”
In other litigation funding news, Augusta has named James Foster as head of commercial and bilateral investment treaties arbitration. He joins from Gowling WLG, where he headed the Middle East arbitration and construction disputes practice.
Augusta has also opened an office in Toronto. Managing director Louis Young said: “We have been involved in the Canadian market for several years and we see Toronto as a logical first step in our growth plans for 2019.”
Finally, Vannin Capital has promoted Rosie Ioannou to UK regional managing director, giving her overall responsibility for its UK business.