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Vannin reveals £25m investment in UK litigation over last six months


Rowles-Davies: demand for funding is high in the UK

Vannin Capital has invested over £25m in UK cases over past six months and expects to make similar investments over the next six to meet demand, it has revealed.

In a rare display of openness by a private litigation funder, Vannin said it has backed a total of 10 new cases in the last six months, seven of which are in the UK.

It has also put unspecified amounts into two international arbitrations and a large US patent claim.

It follows the funder’s decision in May [2] to increase its immediately available facility to the market from £25m to £100m. Vannin formally launched

in June 2011 with backing from Isle of Man-based private equity firm Bramden Investments, and five UK cases already funded.

Nick Rowles-Davies, consultant at Vannin Capital, said: “The market needs to see that there are active and credible funders in operation. Our decision to increase the funds we have available is fully justified and we expect to commit at least the same amount again over the next six months.

“The demand for funding is high in the UK but we’re also receiving a great deal of interest from the US. It is highly likely that we will review our £100m facility for the market with a view to increasing it further in quarter two of 2013.”

Funders are generally very cagey about how much money they have invested and in how many cases. The exceptions are the two UK-listed funders, Burford Capital and Juridica. Their recently published half-year reports of show that Burford made six new investments worth $40.5m (£25.3m) in the first six months of 2012, while Juridica reported no new investments in the same period, while investing more in existing cases.