Litigation funder Therium Capital Management Limited has secured “market-transforming” funding of £200m to invest in large-scale commercial litigation, group litigation and arbitration.
The deal follows the sale last week of the 50% stake in Therium owned by City of London Group plc to an unnamed buyer.
Therium described the deal as “the largest single investment in litigation funding to date”, and said it was funded by a “large financial services company experienced in the area”.
A spokesman for the funder said the deal brought to a close its partnership with the City of London Group Plc. In July last year the group announced that it had been working with the management of Therium to identify a new investor to acquire its 50% stake.
The spokesman said the new investor would take a stake in Therium Group Holdings, the Jersey-based parent of Therium, but its executive team would remain unchanged.
Neil Purslow, founder and chief investment officer of Therium, said: “This landmark deal will position litigation finance as a mainstream asset class and transform the litigation funding market. It is a real vote of confidence in our approach and a strong endorsement of our success to date.
“Our reputation is established as a principal-led funder, offering lawyers direct access to decision-makers. It is our aspiration that more claimants and law firms will now come forward and choose to work with those litigation funders who can deliver consistent results.”
Therium said it had supported a wide range of claimants, including for group actions, such as the shareholder claim against the former directors of Lloyds Group for misleading investors over the 2008 HBOS merger, intellectual property cases, anti-trust/competition claims and international arbitration.
The litigation funder said strong demand was reflected in an almost threefold increase in deal flow year-on-year.
“Since its launch in 2009, Therium has consistently been at the forefront of developments in litigation funding, pioneering the use of insurance within its structures to manage risk and being the first funder in the UK to launch a portfolio funding model.”