Therium announces £200m Litigation Fundraising
Biggest ever single investment in litigation funding globally.
1 May 2015
Leading litigation funder Therium Capital Management Limited (“Therium”) has today announced a market-transforming £200 million private fundraising to invest in the costs of large-scale
commercial litigation, group litigation and arbitration globally. The fundraising is believed to be the largest single investment in litigation funding to date and illustrates the maturing of a market that is now attracting corporate investors drawn to returns that are not correlated with asset classes such as equities or real estate.
The facility is to be funded by a large financial services company experienced in the area. This strategic investor will also become an equity investor in Therium Group Holdings, the new Jersey based parent of Therium. Therium’s executive team remains unchanged and its existing funds will continue to execute the established strategy.
Third party litigation funding enables cases to proceed that might not otherwise be pursued due to lack of funding to go ahead. Litigants enter into an agreement for funding with a private
commercial litigation funder, who receives an agreed share of the proceeds of the claim if it is successful. If the claim is unsuccessful, there is no further obligation.
Therium was one of the first litigation funders in the market. Over the past six years it has built an enviable track record and reputation with its funds investing profitably in 7 out of every 10 cases funded and providing attractive returns to investors.
Therium deploys litigation funding to support a wide range of claimants, including for group actions (such as the high-profile 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, and in industry sectors such as financial services, technology and energy and natural resources. Therium is confident of its ability to deploy the new funding in the UK, US and other jurisdictions. Strong demand for funding has been 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. With the new fundraising, Therium is moving away from an all-equity or fund management model to deploying its facilities which is expected to drive superior performance for shareholders through minimising cash drag and fund costs. Therium expects that future raisings into fund structures will be limited.
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.”
The litigation funding announcement brings to a close Therium’s previous strategic partnership with the City of London Group Plc, which has held equity in the business since 2009.