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Commercial Deals

Deminor Funds French Class Action Representing 6,200 Investors

In the world of litigation funding for class actions, the American, Australian, and British jurisdictions tend to dominate the headlines. However, as many industry analysts have predicted, the potential for growth in European actions remains high, as reflected by Deminor’s announcement that it is funding a large investor-led class action in France. A post from Deminor reveals that the litigation funder is financially backing a French class action being brought on behalf of over 6,200 investors, who allegedly suffered financial losses from investments in funds managed by H2O AM. The asset management company was fined €75 million by French regulators in January 2023, over charges that H20 AM had breached rules regarding illiquid investments. The class action is seeking €717 million of damages to compensate the investors. The Collectif Porteurs H2O, which represents the investors in the class action, filed its claim before the Paris Commercial Court in December 2023. At the time of the filing, the group’s chairman, Gérard Maurin stated: “We would like to take this opportunity to thank the team at Deminor for their incredible support in processing the claimants’ files and funding the legal initiatives undertaken by the association on behalf of its members.” Deminor provided a joint statement from Edouard Fremault, head of investment recovery, and Olivia de Patoul, General Counsel France:  “We look forward to further helping the thousands of people who have suffered substantial losses on their H2O investments. We would like to extend our thanks to the entire team who have worked on the case at Deminor and to the tireless efforts of the association Collectif Porteurs H2O and its counsel Dominique Stucki as they seek to bring justice for the 6,200 plus claimants they are acting on behalf of.”  Deminor’s announcement also noted that the class action is still open for H20 AM investors who have not yet joined the claim, and encouraged any potential class members to register on the association’s website.
Commercial Fundraising

Parabellum Capital Closes $754 Million Litigation Fund

As the litigation finance market continues to become more competitive, funders who consistently raise capital at a large scale are solidifying their position atop the industry. New York-based Parabellum Capital has made a definitive statement about the firm’s strength, with the close of its largest litigation fund yet.  Reporting from Bloomberg Law covers the news that Parabellum Capital has closed on a $754 million litigation finance fund, with at least two-thirds of that capital reportedly already committed to 50 investments.  Speaking with Bloomberg Law, Parabellum’s CEO and co-founder, Howard Shams said that litigation finance “is moving out of infancy and moving into a state of maturity,” and explained that serious investors “can recognize this as a way to make money over and over again with excellent results.” Commenting on the strength of Parabellum’s position in the market, Rebecca Berrebi, litigation finance broker and consultant, stated that “the proof of their success is in their ability to fund-raise large amounts.”  This impressive fundraise is one of the largest ever reported in the litigation finance market, and marks the third such fund that Parabellum has closed, following its first two litigation funds that closed for $166 million $465 million, respectively. According to Bloomberg Law’s reporting, Parabellum’s first fund financed 55 investments, with the firm later selling about half of the original investments in a secondary market deal. The value of that transaction reportedly reached nine figures, with Shams stating that “nobody’s done a secondary trade of that size.”
Announcements Commercial Fundraising

Burford Capital Announces Pricing and Upsizing of Private Offering of Senior Notes

Burford Capital Limited ("Burford" or "Burford Capital"), the leading global finance and asset management firm focused on law, today announces the pricing of its private offering of $275.0 million aggregate principal amount of additional 9.250% senior notes due 2031 (the "Additional Notes") by its indirect, wholly owned subsidiary, Burford Capital Global Finance LLC (the "Issuer"), which represents an increase from the previously announced offering size. The Additional Notes will be guaranteed on a senior unsecured basis by Burford Capital as well as Burford Capital Finance LLC and Burford Capital PLC, both indirect, wholly owned subsidiaries of Burford Capital (such guarantees, together with the Additional Notes, the "Securities"). There is $400.0 million aggregate principal amount of the Issuer's 9.250% senior notes due 2031 (the "Initial Notes") outstanding as of the date hereof. The Additional Notes will initially be offered to investors at an offering price equal to 103.625% of the principal amount thereof, plus accrued interest from January 1, 2024, representing a yield to worst of 8.251%. The offering is expected to close on January 30, 2024. If issued, the Additional Notes will be issued as "Additional Notes" under the indenture pursuant to which the Issuer previously issued the Initial Notes, will have identical terms to the Initial Notes (other than with respect to the date of issuance, the issue price and the first interest payment date) and will be treated as a single class for all purposes under such indenture. Burford Capital intends to use the net proceeds from the offering of the Securities for general corporate purposes. The Securities have not been, and will not be, registered under the US Securities Act of 1933, as amended (the "Securities Act"), or the laws of any other jurisdiction and may not be offered or sold within the United States or to, or for the account or benefit of, US persons absent registration or an applicable exemption from registration under the Securities Act or any applicable state securities laws. The Securities will be offered only to persons reasonably believed to be "Qualified Institutional Buyers" within the meaning of Rule 144A under the Securities Act or non-US persons outside the United States pursuant to Regulation S under the Securities Act, in each case, who are "Qualified Purchasers" as defined in Section (2)(a)(51)(A) under the US Investment Company Act of 1940, as amended.
The LFJ Podcast

Episode 82: Stephen Kyriacou, Jr.

Hosted By Stephen Kyriacou, Jr. |
Our guest today is Stephen Kyriacou Jr., Managing Director and Senior Lawyer at Aon, in the Litigation Risk and Special Opportunities Groups. We spoke with Stephen about the range of products Aon offers, trends in the litigation insurance space, the challenges he faces as a legal insurance broker, and how he sees legal insurance and litigation funding evolving over the coming years. [podcast_episode episode="12450" content="title,player,details"]
Commercial Deals

Exton Advisors Announce Inaugural Singapore Litigation Funding Conference

In a post on LinkedIn, Exton Advisors announced the launch of its inaugural Singapore Litigation Funding Conference, set to take place on 7 March 2024. The litigation funding advisory company is working with David Grief, CEO of David Grief International Consultancy (DGIC), to deliver its first event covering the ‘increasingly thriving market’ for litigation finance in Singapore. Whilst the full event agenda has not yet been revealed, Exton Advisors confirmed the following speakers who will be taking part in the conference:
  • Calvin Liang, Advocate, Duxton Hill Chambers
  • Teck Wee Tiong, Partner and Joint Head of the Sustainability & Responsible Business Practice, WongPartnership LLP
  • Carolina Carlstedt, Investment Manager, Litigation Capital Management
  • Jasmine Chin-Sabado, Ministry of Law – Singapore
  • Hasan Tahsin Azizagaoglu, Associate, Bench Walk Advisors
  • Anthony Ellwood-Russell, Investment Manager, Omni Bridgeway
  • Timothy Cooke, Partner, Reed Smith LLP
  • Daryl Chew, Office Managing Partner, Three Crowns LLP
Commercial People Moves

Maurice Thompson Returns to HFW to Lead Global Litigation Funding Team

An announcement from HFW reveals that the law firm is expanding its operations in Australia with the appointment of Maurice Thompson as a partner in its Melbourne office, where he will lead the firm’s litigation funding practice. Thompson, who has joined the firm along with three of his colleagues from Clyde & Co., is a household name with 30 years of experience in complex disputes across Australia and the Middle East.  HFW’s announcement emphasised Thompson as ‘having the leading litigation funding practice in Australia’, with the firm keen to make use of his expertise in class actions and funded disputes in the region. Commenting on his move to HFW, Thompson stated: “I also look forward to leading HFW's global litigation funding team and assisting the firm and its clients in taking advantage of opportunities arising with developments in the litigation/disputes funding market internationally. The firm has an ambition to become a market leader in litigation/disputes funding and the opportunity to contribute to this initiative was a major attraction for me." HFW Australia’s managing partner, Gavin Vallely described Thompson as “an expert practitioner in the offshore energy, aviation, insurance, litigation funding and, more recently, autonomous ships and aircraft sectors.” Vallely further highlighted Thompson’s “vast experience managing large scale multijurisdictional arbitrations and litigation,” and explained that this latest appointment was a key part of HFW’s growth strategy in Australia. 
Announcements Commercial People Moves

IVO Capital Partners becomes the 8th member of the European Litigation Funders Association (ELFA)

The European Litigation Funders Association (ELFA) is pleased to announce that IVO Capital Partners, an independent French investment manager with nearly 10 years of active presence in the litigation funding industry, has joined ELFA. Paul de Servigny, manager of litigation finance strategy at IVO Capital Partners stated: “Active since 2014 we have witnessed firsthand the strong development of the litigation finance industry in Europe for claimants and lawyers seeking funding as well as for investors seeking different strategies and return profiles compared to typical illiquid offerings. Joining ELFA and being able to work with our fellow funders is the logical step as the market grows and further institutionalizes itself. We are very excited in actively participating to help guide and advise the various national and European institutions and governmental bodies who have shown, for good reason, more and more interest in litigation finance.” Charles Demoulin, Deminor’s Chief Investment Officer and ELFA Director, commented: “We are delighted to have IVO Capital Partners joini ELFA. Based in France, their team has extensive experience and expertise in litigation funding specifically bringing on board a French perspective. With IVO Capital Partners, we further increase the number of European jurisdictions being represented in the association. While litigation funding is a global phenomenon, the ability to acknowledge, understand and address the regional and local specificities from a legal and cultural perspective specifically in the EU remains a priority for ELFA and its members. We look forward to involving IVO Capital Partners in all our activities. We trust their contribution to ELFA’s mission, together with those of all existing and future members, will be highly valuable for the litigation funding industry and the legal community as a whole.” About The European Litigation Funders Association: ELFA was founded by three leading litigation funders with a European footprint, Deminor, Nivalion AG, and Omni Bridgeway Limited. ELFA was established to serve as the European voice of the commercial litigation funding industry. With the objective of representing the industry’s interests before governmental bodies, international organizations and professional associations, ELFA also aims to act as a clearinghouse and reference for relevant information, research and data regarding the uses and applications of commercial legal finance within the European continent. About IVO Capital Partners: Founded in 2012, IVO Capital Partners is an independent French management company specialized in various forms of corporate debt. They invest in listed and unlisted credit with a predilection for special situations offering yield premiums on international markets, particularly emerging markets and litigation finance. The company manages €1.3 billion in assets and employs around 30 people at its Paris offices.
Commercial Regulatory Issues

UK Justice Secretary says Government Will Reverse ‘Damaging Effects of PACCAR’

The biggest story from the UK litigation finance industry in 2023 was undoubtedly the Supreme Court’s ruling in PACCAR, raising the greatest challenge to the viability of the UK funding market in recent times. However, it appears that UK funders are now receiving support from the government, bolstered by awareness around the role of litigation funding in providing access to justice for the sub-postmasters in the British Post Office scandal.   In an article from the Financial Times, the UK justice secretary, Alex Chalk KC stated that the government “will be reversing the damaging effects of PACCAR at the first legislative opportunity.” This latest statement firmly establishes the government’s position with regard to the Supreme Court’s ruling, building upon its efforts to reduce the impact on UK litigation funding through the amendment to the Digital Markets, Competition and Consumers Bill (DMCC). The catalyst behind this definitive proclamation from the government appears to be the renewed public attention on the British Post Office scandal, in which litigation funding played a key role in allowing the former sub-postmasters to bring their claims against the Post Office. Alan Bates, from the Justice for Sub-postmasters Alliance, had once again highlighted the crucial support that third-party funding had played in his group’s fight for justice, describing it as an “essential financing tool.” Whilst the justice secretary’s proclamation will be well-received by UK litigation funders, it is not yet clear what concrete steps the government will be taking beyond the existing DMCC amendment. Gary Barnett, executive director of the International Legal Finance Association (ILFA), emphasized that the type of funding that supported the sup-postmasters “is now under threat,” and called for the government to move quickly to provide a legislative fix.
Announcements Commercial

LegalPay launches Zero Interest Credit Line for businesses to settle legal disputes, to disburse Rs 200 cr in 2024

LegalPay, India’s first litigation funder and legal solutions provider, has announced the launch of a zero-interest credit line for enterprises, startups, individual business owners, and freelancers to settle legal disputes while preserving their working capital. LegalPay aims to disburse INR 200 crore in 2024 through its own NBFC Padmalaya Finserve along with other partner NBFCs. Named Quick Settle, this innovative structured financing is designed to streamline the resolution of legal disputes with a flexible 6–12-month repayment plan, enabling parties to resolve conflicts without depleting their working capital. In a move set to transform legal finance in India, Quick Settle aims to facilitate amicable dispute resolution by enabling parties involved in disputes to settle claims without impacting their working capitalthrough a zero-interest credit line offered to the defendants with a flexible 6–12-month repayment cycle. Kundan Shahi, Founder and CEO of LegalPay, said, "Our vision is to bridge the gap between legal disputes and swift resolutions. Quick Settle is not just a financial product. It catalyzes change, fostering a culture of collaboration and resolution. By allowing defendants to manage their working capital efficiently through a zero-interest repayment cycle, we aim to foster a more conducive environment for businesses to thrive. Quick Settle embodies years of litigation funding expertise, adopting a tailored approach because we understand that one size does not fit all. This structured financing option enablesdefendants to settle claims seamlessly, alleviating the stress of legal battles without compromising their working capital." Quick Settle is expected to disrupt innovation in legal finance, specifically tailored to improve the efficiency of the Indian judicial system, which is currently burdened with an overwhelming backlog of 61 lakh cases in the country’s 25 High Courts. By offering defendants manageable repayment options and claimants immediate settlement funds, Quick Settle aims to streamline the judicial process and foster a culture of amicable resolutions. Founded in 2019, LegalPay has funded over 44,000 commercial cases and underwritten a staggering 92,000 cases nationwide. With Quick Settle, LegalPay aims to further disrupt a potential $200Billion market by bringing financial relief to businesses and having a positive social impact by expediting dispute settlements. Quick Settle ensures that the businesses receive their claim amount on day one, thus proving to be a game-changer for companies looking to bolster their financial strength. With QuickSettle, companies can navigate conflicts without lawsuits, preserving valuable business relations with vendors and customers. About LegalPay: LegalPay is a leading name in the Indian litigation funding market, dedicated to providing comprehensive financial solutions to individuals and businesses involved in legal disputes. Currently managing over INR 2800 Crores worth of claims, LegalPay has emerged as a leader in litigation funding, bridging the gap between legal expertise and financial solutions with a focus on innovation, transparency, and client satisfaction.