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Grant Farrar, Founder of Arran Capital, Discusses Litigation Funding for Public Sector Entities

February 2, 2021

Grant Farrar, Founder of Arran Capital, Discusses Litigation Funding for Public Sector Entities

On a recent episode of the Litigation Finance Podcast, Grant Farrar of Arran Capital discussed his firm’s value proposition as the only litigation funder focused solely on public sector financing. Grant explains why public sector funding merits its own categorization, what the sticking points are in convincing politicians and others of litigation funding’s value, and what his expectations are for future growth in this rapidly-evolving space.

Below are key takeaways from the interview, which can be listened to in its entirety here.

LFJ: What makes litigation financing for public sector entities so unique? Why does this type of funding merit its own differentiated category?

GF: In terms of public sector affirmative litigation, one of the undeniable and very interesting trends that’s going on across the country with every shape and size and jurisdiction, is the uptrend in affirmative litigation. So, it really started off with, as you recall, the tobacco litigation in the late 90s and early 2000’s, and now has evolved into some different issues areas, so it can be a public nuisance, relative to environmental or other quality of life issues that affect constituents around the country. It could be the opioid litigation which everybody is very familiar with, a related offshoot of that would be the Juul litigation which is being maintained right now. And a whole host of other issues that relate to consumer fraud or antitrust. One of the things about public sector entities is they are the intersection of every piece of public policy and business.

As litigation continues to increase, certainly in the time of COVID-related budget strain and stress on entities across the country, the core issue of ‘okay, how do we find funding’ and ‘how do we pay for this legal representation’ is certainly at the forefront. And this is where Arran Capital comes in, with our value proposition that we’re real excited to talk about today.

LFJ: In terms of public sector financing more broadly, what are some of the key drivers of growth that this sector of the industry is facing?

GF: It really boils down to a concept which is being discussed in public sector circles with respect to rethinking revenue models and finding ways to generate revenue in different and creative ways that will assist public entities across the spectrum. So one of the drivers on that is chief financial officers in public sector organizations and their chief legal officers that work hand-in-hand with those who set the policies. They’re coming to the realization that it’s more than just across the board budget cuts or trying to lean operations. They’re trying to find different and creative ways to manage that revenue strain while also dealing with the growing expectation and the demand on behalf of their constituents and their public sector leaders for affirmative litigation to address the issues.

LFJ: ESG—this is a hot buzz word at the moment across the investment landscape and across Wall Street. It stands for Environmental, Social, and Governance, also known as Impact Investing. The idea is that investors are starting to look beyond just profit at how companies they invest in are impacting those various metrics. A lot of institutional players are starting to mandate ESG allocations from their partners. How could this trend impact public sector financing?

GF: Great question. I’m glad you asked that. Just this week we’ve seen the largest asset manager in the world speaking to the tectonic shift in the investment space with respect to funds flowing into ESG-related investments and ESG-related approaches. And at Arran Capital, we view ourselves as part of that component and part of that wave, because if you think about what ESG stands for, one of their core case matters or case areas that we seek to invest in is with respect to the environment; those public sector / public nuisance actions. So investing with our fund that can then invest in cases that address environmental issues, that’s part of our core focus and mission.

Going to social and governance, it’s also about investing in cases that promote access to justice for citizens across the country, and ensuring that citizens and their public servants have a role as constituents and representatives of government having a responsive investment approach and a responsive and good outcome on the litigation side. So we’re really excited about how we can tie into ESG, it’s one of the main drivers in our value proposition and one of the things we seek to focus on and execute.

Click here to listen to the full episode.

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Court of Appeal Shuts Down BHP’s Attempt to Overturn Mariana Liability Judgment

By John Freund |

The Court of Appeal of England and Wales today refused BHP’s application for permission to appeal the High Court’s landmark liability judgment in the Mariana disaster litigation.

The High Court found BHP responsible for the 2015 collapse of the Fundão tailings dam in Mariana, Minas Gerais, Brazil, concluding that BHP is liable for the disaster under both the Brazilian Civil and Environmental law.

The Court of Appeal heard BHP’s application for permission to appeal the decision on 12 March after BHP was refused permission to appeal by the High Court in January.  BHP asked the court for permission to contest the findings that it was a polluter, and that it had knowledge of the risks associated with the dam before the collapse. The mining company also challenged the finding that all claimants brought their claims in time.

The Court of Appeal’s refusal marks a further victory for the hundreds of thousands of Brazilian victims who have spent over ten years pursuing justice, and a major setback for BHP. The High Court’s liability judgment remains in force, and BHP has exhausted the ordinary routes by which it could seek to overturn it.

In today’s ruling, the court concluded that BHP’s proposed grounds of appeal have no real prospect of success and there is no other compelling reason for the appeal to be heard.  The decision means that the parties will proceed to the trial of Stage 2 of the proceedings, which will determine issues of causation, loss and damages. The trial evidence is to be heard from April 2027 to December 2027, with closing submissions listed for March 2028.

Lord Justice Fraser wrote in the decision: “I do not accept that any of the grounds relating to BHP’s liability for the dam collapse are reasonably arguable. I do not consider that there is any foundation for the different complaints that the trial judge failed to engage with BHP’s case."

Jonathan Wheeler, lead partner for the Mariana litigation at Pogust Goodhead, said: “The Court of Appeal has now joined the High Court in finding that BHP’s grounds of appeal have no real prospect of success - an emphatic and unambiguous outcome. BHP remains liable for the worst environmental disaster in Brazil’s history, and it will not be given another bite at the cherry.”

“Our clients have waited more than a decade for justice while BHP pursued every procedural avenue to avoid accountability; those avenues are now closed. We are focused on securing the compensation that hundreds of thousands of Brazilians have been owed for far too long.”

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Loopa Finance Wins at the Lexology European Awards 2026 in the Litigation / General Counsel Category

By John Freund |

Loopa Finance has been recognized as the winner in the Litigation – General Counsel Team category at the Lexology European Awards 2026, one of the leading recognitions in the international legal sector.

The award was received in London by Ignacio Delgado, General Counsel Europe at the firm, on behalf of Loopa Finance’s European team, composed of Ignacio Delgado (General Counsel Europe), Marina Gouveia (Investment Manager), Fernando Pérez Lozada (Senior Investment Manager), and Fernando Folgueiro (Managing Partner).

The Lexology European Awards recognize outstanding legal teams across the region through a methodology that combines independent research, quantitative and qualitative analysis, and thousands of nominations supported by clients and industry peers, as well as the annual research conducted by the Lexology Index (formerly Who’s Who Legal) and Client Choice.

The selection process is based on performance evaluations related to effective communication, commercial understanding, technical expertise, strategic management, and team strength, and is supported by a global community of more than 940,000 subscribers.

This recognition positions Loopa Finance’s European team among the leading practitioners in complex litigation and strategic legal management in Europe.

“This award reflects the strength of a team operating across two continents that understands litigation not only from a legal perspective, but also through financial analysis and risk management. It is the result of collective work and a rigorous, strategic approach to structuring complex disputes,” said Delgado during the ceremony.

More Than an Award: Validation of a Model

The award comes at a time of consolidation for the firm. Loopa Finance recently completed its rebranding process, evolving from Qanlex to Loopa Finance and reinforcing an identity aligned with its growth in continental Europe and its broader international positioning.

It also coincides with the closing of Fund III, raising €65 million to finance complex litigation and arbitration across Europe and Latin America, significantly expanding the firm’s investment capacity and supporting the continued growth of its platform in the region.

This milestone adds to the firm’s recent rankings, including its Band 1 classification by Chambers & Partners in Latin America and Europe, its recognition as “Highly Recommended” by Leaders League across multiple jurisdictions, and the inclusion of members of its team among the Thought Leaders in Third-Party Funding by the Lexology Index. Together, these results confirm the strength of Loopa Finance’s model and the consolidation of its team as a reference in the strategic financing of disputes at an international level.

About Loopa Finance

Loopa Finance is an investment fund specializing in the financing and monetization of litigation and arbitration across continental Europe and Latin America, supported by a technology-driven model and rigorous risk analysis. The firm provides capital to cover legal costs or monetize ongoing claims through non-recourse structures, where the recovery of the investment depends exclusively on the successful outcome of the case, assuming the financial risk of the dispute while fully aligning its interests with those of clients and law firms.

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Pravati Capital Partners with SEI to Bring Litigation Finance to Registered Investment Advisors

By John Freund |

One of the oldest litigation finance firms in the United States has announced a strategic partnership aimed at expanding mainstream investor access to the asset class.

As reported by Business Wire via Yahoo Finance, Scottsdale-based Pravati Capital has partnered with financial services firm SEI to provide registered investment advisors with structured access to litigation finance as an alternative investment option. The collaboration will leverage SEI's distribution platform to make litigation funding opportunities available within advisor portfolios.

The partnership reflects growing institutional interest in litigation finance as an alternative asset class. Historically, litigation funding has been difficult for mainstream financial advisors to access on behalf of their clients, with the market largely dominated by specialized funds and institutional investors. The Pravati-SEI arrangement seeks to bridge that gap by creating a more accessible pathway for advisors seeking diversification through non-correlated investments.

The announcement underscores a broader industry shift as litigation finance continues to move from a niche strategy toward greater acceptance within traditional wealth management channels. As the global litigation funding market grows — projected to reach over $25 billion in 2026 — partnerships like this one may signal a new phase of institutional adoption.