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New portfolio funding model

19th December 2014

Therium announces new portfolio funding model

Innovative portfolio funding model launched with first law firm.

Therium Capital Management Limited, the litigation and commercial arbitration funder, has launched a ground-breaking portfolio funding arrangement with the litigation team of private client legal practice Harcus Sinclair and Harcus Sinclair Limited (HSL). Under the portfolio funding model, Therium works with a selected law firm to pursue cases for its clients. Therium establishes a dedicated entity with the firm for that purpose, pooling risk and sharing in returns. The entity can be tailored to suit the needs of the firm, whether covering the whole firm or specific practice areas or geographies. Funding can be provided for both litigation and arbitration, including group litigation.

This new funding approach enables law firms to share risk and reward with Therium on the funded cases, promoting a closer alignment of interest between law firm, client and funder. “We have enjoyed a long and successful working relationship with Harcus Sinclair across a number of cases and are delighted to initiate this new portfolio funding model with them which is the first arrangement of its kind” says Neil Purslow, founder and chief investment officer of Therium. “We are talking to many law firms about the potential that this model offers for their business.”
Harcus Sinclair is known for its practice in acting in group litigation relating to financial services. HSL acts for Claimant Group in the high profile claims against Lloyds Bank arising out Lloyds’ acquisition of HBOS in 2009.

Therium deploys litigation funding to support a wide range of claimants, including the investors in the Lloyds / HBOS litigation. The benefits of this portfolio model are many: for the client, the litigation or arbitration can be fully funded, relieving the client of the cost burden of pursuing the claim. As the law firm shares in the risk of the case and the return, it is
incentivised to achieve a successful result. The model also provides the law firm with cash flow, enabling it to manage its financial exposure and undertake a wider range of contingent work.
“This is an innovative development in litigation funding and demonstrates Therium’s understanding of our needs as lawyers,” comments Damon Parker, founding partner and Head of Litigation at Harcus Sinclair.

Therium was one of the first litigation funders in the UK market. Since its launch in 2009, it has consistently been at the forefront of developments in litigation funding, such as pioneering the use of insurance within its structures to manage risk. Therium funds across a wide range of cases including for group actions, intellectual property disputes, anti-trust / competition cases and in international arbitration, and in industry sectors such as financial services, technology, energy and natural resources.

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