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Bloomberg Law on Historic ‘Secondary Deal Fund’ Landing $750M 

June 6, 2022

Bloomberg Law on Historic ‘Secondary Deal Fund’ Landing $750M 

Bloomberg Law profiles Ashley Keller and Adam Gerchen as serial law entrepreneurs who have now raised $750M to fund the first secondary transaction litigation fund. Six years ago, Mr. Keller and Mr. Gerchen made headlines by selling their litigation finance firm for upwards of $160M to Burford Capital. Bloomberg Law reports that the secondary deal landscape for litigation finance is in its infancy. News of Keller and Gerchen’s new secondary market fund (under the banner of Gerchen Capital Partners) is being viewed as a signal of the maturing nature of litigation investment broadly.  According to Bloomberg Law, $225M of proceeds from the fund have been dispatched. In one instance, funds were disbursed to purchase a 30% stake from Omni Bridgeway’s investment in an Australian class action. Sources say Omni was overweight with ‘combustible cladding’ claims in Australia and decided to offload some of the risk to the secondary market.  Bloomberg reports that Gerchen Capital Partners submitted $19.5M to Omni for the stake. A regulatory filing discloses Omni banking a $16M profit for the transaction. Bloomberg’s insights suggest that Mr. Keller and Mr. Gerchen are looking to usher in a robust secondary marketplace for litigation investors. Active debate around a robust secondary market for litigation finance is ongoing. Many suggest that savvy litigation funders would only offload assets if concerned about losing the claim, or not being able to enforce a successful outcome. However, others suggest the needs of litigation franchises change over time, as claims can often take years to reach resolution. Hence there may be a need for a secondary market in Litigation Finance.

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Commercial

European Opt-Out Class Action Claims Pass €200 Billion as Courts Turn Attention to Funding Arrangements

The cumulative value of opt-out class actions across Europe's highest-risk jurisdictions has surpassed €200 billion, and filings have resumed growth after a one-year dip, according to CMS's European Class Action Report 2026.

As reported by Scottish Legal News, the number of class actions filed across Europe rose to 107 in 2025 from 99 in 2024, still below the 2023 peak but pointing to renewed activity. In the UK, the total value of class actions climbed to €179.52 billion from €159.55 billion. Across the three leading opt-out jurisdictions — the UK, the Netherlands and Portugal — the combined value of opt-out claims reached €203.45 billion, up from €173.09 billion.

The growth since 2020 is steeper still. UK opt-out claim values have risen almost fivefold, from €21.65 billion to €101.66 billion, while the three-jurisdiction total has increased nearly tenfold from €22.52 billion.

Consumer and competition claims remained the largest category at 37% of filings, with product liability and personal injury at 14% and data protection at 13%. CMS expects the EU Product Liability Directive's implementation to broaden the scope for claims involving software and AI systems.

Kenny Henderson, a partner at CMS, said the €200 billion figure "would have been unthinkable just a few years ago," and that for large corporates operating in Europe, class actions are "an established and increasingly interconnected litigation risk." The report identifies litigation funding as a principal area to watch, noting that courts across Europe are paying closer attention to the relationship between funders and claimants, with significant judicial guidance expected in the coming years.

Commercial

Pinsent Masons Tells Law Commission a New Opt-Out Consumer Class Action Regime Risks Becoming a “Cash Cow” for Funders

Pinsent Masons has warned that a new opt-out consumer class action regime in England and Wales could end up serving claimant law firms and litigation funders more than the consumers it is meant to compensate.

As reported by Out-Law, the firm has submitted its response to the Law Commission's scoping questionnaire on consumer class actions ahead of the 30 October deadline. The Law Commission is examining, at the UK government's request, whether a dedicated collective regime would strengthen consumer law enforcement; unlike competition claims, consumer law claims currently have no bespoke mass claims mechanism.

In its submission, the firm questioned whether such a regime would address a genuine unmet need. "Far from enabling access to justice, prioritising litigation over more appropriate mechanisms of redress could result in an explosion of speculative consumer law claims being brought for-profit with little to no benefits for those represented," it said. "This approach provides little in the way of justice, but large rewards for funders and lawyers."

The firm also argued that creating any new opt-out regime now would be premature, given that substantive consumer law enforcement reforms only took effect last year and that a separate consultation on the competition opt-out regime remains ongoing. On the existing regime's record, it said damages are "accessed by only a small number, and these damages are dwarfed by the returns for funders and lawyers," cautioning against "conflating 'access to justice' with 'access to litigation'."

If a regime does proceed, Pinsent Masons proposed guardrails including stricter regulation of third-party litigation funding, robust certification rules, an early strike out mechanism for abusive claims, and costs controls.

Commercial

Motor Finance Claims Firm Enters Administration Owing Money to Collapsed Funder Woodville

A Welsh law firm specialising in motor finance redress claims has been placed into administration while carrying an outstanding charge in favour of Woodville Consultants Limited, the litigation funder that itself collapsed in July.

As reported by The Law Society Gazette, Swansea-based Fairplane Solicitors Limited, which also traded as The Refund Lawyer, began insolvency proceedings with administrators from Kroll Advisory Ltd appointed on 1 October. The firm is understood to be undergoing an orderly closure, with clients protected under its succession plan. The Refund Lawyer brand was set up exclusively to pursue claims for mis-sold commissions and excessive interest charges on vehicle finance, and Fairplane had worked on mis-sold finance claims on a no-win, no-fee basis for a decade.

Abridged accounts for the year to March 2025 showed total net liabilities exceeding £900,000. Assets were assessed at more than £23 million, but cash reserves stood at just £35,000 and longer-term debts had risen 23% over twelve months. Headcount grew from 21 to 28 across the same period. The Solicitors Regulation Authority said it is liaising with the firm and would consider action only if client interests were at risk.

Woodville, also based in south Wales, was placed into administration in July, with Kroll likewise appointed. Its administrators have expressed "significant concerns as to the realisable value of the loan book," reporting last month that the funder concentrated lending on 10 law firms and associated entities, primarily in Wales and northwest England, and that loans to only one firm appeared to be secured. Funding may in some cases have supported general working capital rather than case costs.