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Announcements Commercial Fundraising

Litigation Finance Firm Invests €25 million into Spanish Legal Tech Business

A Manchester firm has signed a groundbreaking €25 million deal to support a pioneering Spanish legal tech company, renowned for its expertise in handling claims related to cartel price fixing.
In a bid to increase access to justice across Europe, IQuote Limited will provide financial backing to Málaga based Cartel.es as it looks to expand across the continent. The Spanish company, which is the trading name of LegalTech Ventures S.L, was founded to tackle the vehicle cartel price-fixing scandal, which implicated 23 vehicle manufacturers from 2006 - 2013.
For two decades, Spain has seen a rise in these cartels involving companies in the same sector covertly fixing prices, sharing territories and customers, and exchanging sensitive commercial data.
The scandal, brought to light by the National Markets and Competition Commission (CNMC) in 2015, is thought to impact about 9.7 million consumers in Spain. This latest agreement to supply a funding facility of up to €25 million, is aimed to support Cartel.es in its expansion across Europe.
Craig Cornick, IQuote’s CEO and founder, said the investment is a strategic move to help more people across Spain obtain the justice they deserve. “Cartel.es is doing a very important job for the people affected by these corporate cartels and we couldn’t be prouder to be supporting the firm’s mission. The investment will not only provide financial backing to the company but also make justice a tangible reality for those in Spain and beyond.”
Cartel.es has made significant investments in proprietary technology allowing it to assess and quantify each claimant before court proceedings, facilitating faster resolutions. Co-founder and Chief Investment Officer, Adam Peake, said: “We are very proud of the work that we do.  These types of claims are not easy to approach so we are very excited to be partnering with IQuote, which has such a track record when it comes to complex legal matters.
“We’ve seen tremendous success so far and we’re looking forward to IQuote’s support and expertise in making lasting contributions to the European legal landscape, bringing justice closer to more people.”
Founded in 2016, IQuote Limited, specialises in legal asset and opex capital loans, with a primary focus on legal asset investing. The firm is constantly pushing for inventive solutions and investment opportunities to firms in the legal, technology and customer service sectors.
Mr Cornick added: “It is very important for us to champion businesses that put in great effort to help people access justice, it’s the core of what we do. With this investment and future expansion into Europe we are committed to bridging the gap between individuals and their right to legal resource. We’re hoping to keep growing the company and continue our mission to break down barriers to justice across the globe.”
Commercial Regulatory Issues

Litigation Funding Bill Introduced in House of Lords

Earlier this month, the UK government announced that it would introduce legislation to protect litigation funding by reversing the impact of the Supreme Court’s decision in PACCAR. Whilst it was uncertain at the time of the announcement how quickly the government would move forward with these plans, we have now seen that no time has been wasted to introduce simple legislation to Parliament. Earlier this week, the Litigation Funding Agreements (Enforceability) Bill 2024 was introduced in the House of Lords, delivering on the government’s promise to roll out new legislation to reverse the effects of the Supreme Court’s PACCAR ruling. HL Bill 56, ‘a Bill to amend section 58AA of the Courts and Legal Services Act 1990 to make provision about the enforceability of litigation funding agreements’, was introduced by Lord Evans of Rainow on 19 March 2024. The text of the bill is succinct and only makes two amendments to subsection (3) of section 58AA of the Courts and Legal Services Act, with the first being to insert the following text after paragraph (a): “an agreement is not a damages-based agreement if or to the 5 extent that it is a litigation funding agreement.” The second amendment, which is to be inserted after subsection (3), provides a straightforward definition of a litigation funding agreement with regards to the roles of the funder and the litigant within such agreements.  The bill states that these amendments ‘are treated as always having had effect.’ The second section of the draft legislation also clarifies that this act applies solely to England and Wales, and that it ‘comes into force on the day on which it is passed.’ The bill was introduced on 19 March and had its first reading in the House of Lords, and according to the UK Parliament website, it now has a second reading scheduled for 15 April 2024. The second reading of the bill allows for a general debate on the details of the bill.
Community Spotlights
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Member Spotlight: Ziad Mouallem

Ziad Mouallem is the Founder & Operator of Practiclaim. Ziad is a Legal Entrepreneur, International Dispute Resolution Specialist, and Legal Innovator & Strategist, with a specific experience in Litigation Finance, Arbitration, ISDS, Enforcement, ADRs, ClaimTech, Legal Systems Design & Engineering, Legal Ops & Products Advisory, and Claim Management & Strategy.

Company Name and Description: Practiclaim

Practiclaim is a multidisciplinary Alternative Legal Claims Service Provider (ALCSP), offering comprehensive end-to-end solutions on a mandate-led basis.

We act as a claims incubator, aiding companies, their in-house functions, claim funders and service providers in efficiently sourcing, managing, optimizing, and realizing legal claims, with a particular focus on international arbitration, cross-border, and multi-jurisdictional business disputes.

Our services include cost-efficient Enterprise Legal Services (ELS) and Legal Process Outsourcing (LPO), ranging from free initial prevention and assessment, through optimized multi-sourced due diligence, to flexible-value-based-fee legal representation, enforcement, and financing/monetization options.

Company Website: www.practiclaim.com

 Year Founded: 2019

Headquarters: Dubai, UAE

Area of Focus: Claim and dispute management and advisory, claim due diligence, pre-contentious risk management, legal representation support, international arbitration, ISDS, complex litigation, cross-border disputes, enforcement, recovery, international law, dispute resolution, early case assessment, legal tech, claim tech, justice tech, enterprise legal process outsourcing, legal help, claim value maximization, corporate & consumer access to justice, expert in-house support, legal claims solutions, managed legal services, value-driven fee optimization, decentralized justice, know your claim, team aggregation & resources allocation, legal procurement solutions.

Member Quote: "In the dynamic realm of legal claims and dispute resolution, funding solutions serve as the linchpin for ensuring access to justice for corporations and consumers alike. Subject to ongoing economic market adjustments, they enhance accessibility, ensure equitable legal support, facilitate legal mobility for claims, and evolve further into merged service offerings within claim service providers. These endeavors collectively reinforce the foundation of a genuinely just society."
Announcements Consumer

Mass Tort Industry Leader Nicholas D’Aquilla Joins Counsel Financial

In a strategic move to bolster its litigation finance and loan servicing capabilities, Counsel Financial welcomes Nicholas (Nick) D’Aquilla, Esq. as its new Managing Director. With over a decade of experience in the mass tort industry and as a former civil defense litigator for the Louisiana Department of Justice, D’Aquilla brings a wealth of knowledge and a proven track record of success to the Counsel Financial leadership team.

D’Aquilla has distinguished himself as a leading figure in administering complex settlements, contributing to the administration of more than $20 billion in mass tort settlements across many high-profile cases. His expertise in solution design and oversight services has contributed to the resolution of more than 40 mass tort and class action litigations, spanning environmental, pharmaceutical, medical device, and sexual assault matters.

D'Aquilla will focus on enhancing Counsel Financial's mass tort underwriting processes and loan servicing offering, enhancing the development of valuation models based on historical settlement data. He will also leverage his experience as a consultant for multiple legal technology companies to help drive continued refinement of the company's servicing platform.

“Adding Nick to our team marks a significant enhancement of our litigation finance and loan servicing offerings,” said Paul Cody, President & CEO of Counsel Financial. “Coupling our team’s 200+ years of legal, financial and litigation experience with Nick’s knowledge and insight into the mass tort sector provides unparalleled resources that can be leveraged by both our law firm clients and institutional investors utilizing our servicing platform.”

Before joining Counsel Financial, D’Aquilla played a pivotal role in a complex settlement fund advisory team for a national bank, where he developed innovative underwriting methodologies that enabled credit extensions to mass tort plaintiffs’ firms. There, he also analyzed and valued over $1.5 billion in loan collateral derived from mass tort dockets.

About Counsel Financial

Counsel Financial is an industry leader in originating, underwriting and servicing loans and other financing solutions for contingent fee law firms. For over two decades, Counsel Financial has provided more than $2 billion in capital investments across 300+ law firms. These investments have financed the growth of firms in every area of plaintiffs’ litigation, including personal injury, mass torts, class action and labor and employment.

Commercial Special Features

Highlights from Brown Rudnick’s Litigation Funding Conference 2024

Last week, Brown Rudnick hosted its third annual European Litigation Funding Conference, proving once again to be one of the premier gatherings of industry thought leaders and executives. The one-day event featured an agenda full of insightful discussions, as senior representatives from funders, law firms, insurers, and other industry firms, all provided their perspectives on the most pressing issues facing the European funding market. The conference served as a reminder of the growing interest in litigation finance, as the venue was packed with attendees and without an empty seat in sight at the start of proceedings. Before the panel discussions began, the event kicked off with a keynote speech from Camille Vasquez, partner and co-chair of the brand & reputation management group at Brown Rudnick. Vasquez, who gained international recognition for her involvement in the Depp v. Heard trial, offered an alternative perspective on litigation funding, exploring its potential use in defamation cases brought by high-profile individuals or companies. As Vasquez explained, whilst it is commonly assumed that celebrities and other public figures have access to large amounts of liquid capital, this is often not the case. In such situations, Vasquez suggested that litigation funders may be able to play a crucial role in supporting high-profile plaintiffs who are eager to pursue defamation litigation but lack the funds to seek justice. A Post-PACCAR World and the Future of Regulation Unsurprisingly, the hottest topic at the litigation funding conference was the ongoing impact of the Supreme Court’s PACCAR ruling and the recent announcement by the UK government that it would introduce legislation to reverse the effects of that decision on litigation funding.  Looking at the long-term impact of the Supreme Court’s decision, Susan Dunn from Harbour provided the quote of the morning, when she emphatically stated that the PACCAR ruling would be remembered as “a footnote in history, not a chapter.” Similarly, Nicholas Bacon KC of 4 New Square Chambers, described it as “a blip in the landscape” of the UK funding market, and pointed out that the situation had in some ways had positive effects as it had brought wider public attention to litigation funding. However, speakers across the day recognised that PACCAR had created unnecessary uncertainty for investors considering engaging with the UK market, and had created fresh talking points for the most vocal opponents of third-party funding. NorthWall Capital’s Alexander Garnier reported that the Supreme Court’s judgement had “made people more nervous about investing in the UK and London”, because it had increased the risk of investments or had increased the perception of those risk levels. According to Professor Rachael Mulheron KC, another negative side-effect of the decision has been the “unfortunate conflation between regulation and PACCAR,” which has made productive discussions around the future of industry oversight more challenging. As the event’s participants discussed the effects of PACCAR, these exchanges naturally turned to the government’s announcement of new legislation and a potential review into the litigation funding market. With the review suggesting the possibility of enhanced regulation of third-party funding, Woodsford’s Charlie Morris admitted that this aspect of the government’s announcement was unfortunate, as it had “given an opportunity for the anti-funding lobby” and compared it the “politically motivated campaign” that took place in Australia to crack down on litigation funders. As to what future regulations could (or should) look like, speakers at the conference were divided on certain issues such as a potential cap on the level of returns a funder could take from any award or damages. Morris once again emphasised the need to avoid “broad brush statutory prohibitions”, whilst Dunn firmly argued that a cap on funders’ returns “should not be part of any regulation.” In contrast, Garnier expressed an openness to some form of cap, explaining that he would “welcome clarity” on industry regulations, “even if it involves a regime that includes a cap on damages.” Offering the most succinct perspective on the funding industry’s view of new legislation, Matthew Lo from Exton Advisors argued that there is “nothing to be afraid of about regulation in general, but the devil is in the detail.” On a similar note, Professor Mulheron suggested that the most important thing for any government plans to introduce new regulations is that “funders have to be around the table” for these discussions. The Impact of the Post Office Scandal Closely tied to the UK government’s ongoing attempts to soften the blow of PACCAR, is the role played by the Post Office scandal and the impact it had on bringing the vital role of litigation funding in securing access to justice to the public’s attention. One of the highlights of the day’s discussions was the insight provided by Neil Purslow of Therium, who offered a fascinating account of the funder’s involvement in the sub-postmasters litigation and expressed some frank reflections on the ways it had highlighted the nefarious tactics of defendants. Purslow described the case as a perfect example of a defendant “spending money on lawyers rather than doing the right thing”, and noted that the Post Office had spent £100 million to fight the case rather than actually providing compensation to the victims upfront. Purslow emphasised this fact in combination with a rebuttal of the oft-repeated claim that Therium had taken 80% of the damages awarded to the sub-postmasters, explaining that the actual return for the funder was around 41%. In light of these facts, Purslow described the arguments in favour of a broader cap on funders’ fees as “nonsense”, and instead highlighted the case as yet another instance of defendants taking “a scorched earth approach to litigation.” Purslow concluded his contribution to the day’s discussion by recognising that whilst the PACCAR decision had been “a self-inflicted wound”, the industry and government’s reaction has clearly demonstrated that the UK “is a jurisdiction that is supportive to litigation finance.” Furthermore, Purslow praised his fellow litigation funders for “working together collaboratively and sharing ideas” to protect the UK funding industry, and highlighted the value of institutions like ILFA in providing a powerful voice that could “address the issue and get the government to act.” Economic Pressures, Corporate Cases and Law Firm Funding During the day’s panel discussions, speakers offered their views on the trends, opportunities and challenges that industry participants have seen over the last twelve months. As many industry leaders have spoken about in the last year, whilst litigation funding is broadly seen as an uncorrelated asset class, that does not mean that it has been, as Matthew Lo put it, “immune to the wider economic environment”. The majority of panellists agreed that the rise in interest rates had continued to apply pressure on funders’ pricing, which then increased cost of financing creating challenges for those funders looking to raise capital. However, due to these challenging economic conditions, speakers noted that there has been an increase in demand for funding from law firms and corporations, both of whom are facing similar budget pressures whilst still looking to manage their litigation strategies. As Christiane Deniger of Burford Capital explained, many listed companies are actively seeking funding for a portfolio of cases and are “ready and willing to not spend their own money if they can take ours.” Rocco Pirozzolo from Harbour Underwriting added that these corporate cases were often attractive, because key decision makers at these companies share the funder’s perspective that “they have to be commercial and they have to be reasonable.” When it came to working with corporate GCs and CFOs, there was a broad consensus among the industry leaders present that there was still plenty of work to do around educating these inhouse decision-makers on the nuances of litigation funding. Ayse Yazir from Bench Walk noted that there is often still “concern over the control of the case”, with critics of the litigation finance industry contributing to fears that funders would seize control of the litigation process. Nathaniel Cortez of Moelis acknowledged that whilst these corporate leaders “don’t need to be experts on litigation finance”, it was clear that many GCs and financial directors did not “understand the breadth and depth of the industry”. The discussions focused on law firm funding proved to be some of the most enlightening exchanges of the conference, with funders and lawyers alike sharing their perspectives on some of the unique challenges and opportunities that this avenue of investing entailed. Hugo Lestiboudois from SYZ Capital made a clear delineation between straightforward litigation financing and the process of lending directly to law firms. He explained that law firm funding “is not as commoditised as litigation finance is today”, with investors needing to approach it from a business perspective and often having to “compete on terms, rather than on price.” Reinforcing this viewpoint, Chris Benson from Leigh Day argued that this type of funding crucially involves “getting lawyers to think like economists”, and acknowledged that this can be challenging as “a lot of lawyers have no interest in finance.” Looking at the practical steps involved in law firm funding, both in terms of the due diligence undertaken pre-funding and the ongoing monitoring and reporting that must take place post-funding, the speakers once again provided useful insights. Joshua Katz from Gramercy said that from his firm’s perspective, part of the journey was understanding the law firm’s wider strategic objectives, saying that Gramercy recognised that for a firm there are “some cases you should pursue even if they’re not economical, for the greater good.” Similarly when it came to the ongoing relationship between the funder and law firms, it was not only crucial for practical issues like reporting systems to be in alignment, Lestiboudois highlighted the need for a “cultural fit” between firms. A High Benchmark for Industry Conferences By the end of the day, the event’s attendees had been treated to a plethora of engaging discussions across seven separate panels, bolstered by plenty of opportunities for networking and connections between sessions. The full scope and detail of every speaker’s insights could not be encompassed in this single overview of the day’s proceedings, but by the time the agenda concluded with informal refreshments, the conference had succeeded in providing an impressively diverse array of perspectives on litigation funding in Europe. Brown Rudnick’s third European Litigation Funding Conference proved to be an enlightening experience for those in attendance, with the proceedings expertly guided by the conference chair Elena Rey and fellow moderators from Brown Rudnick, who skilfully guided the event’s packed schedule. LFJ’s team were delighted to meet with fellow attendees who expressed their enjoyment of the event, and we are already looking forward to covering next year’s iteration of Brown Rudnick’s conference.
Announcements Commercial Legal Innovation

Legal Finance Firm Set to Reboot Industry with Multi-Million Pound Investment in AI-Tech.

A leading litigation finance firm is investing circa £2m into AI technology as the company looks to continue its meteoric global growth.  Nera Capital, which has offices in Dublin, Manchester and a newly established presence in The Netherlands, plans to significantly enhance its process optimisation and strengthen data analytics.  The investment is expected to significantly benefit the various law firms across Europe, UK and the US that are currently partnered with the company as it seeks to expedite the legal process and ultimately create greater access to justice.  Director Aisling Byrne highlighted the impact of technology on the company’s future plans: "Our investment in AI shows our commitment towards efficiency and innovation.  "We believe this increase in investment will enhance our entire operations, revolutionising further the way we approach various aspects of our business. By leveraging advanced AI technologies, we aim to further streamline processes, boost efficiency, and drive innovation across the board. The decision is a huge step forward, and I am proud of our continued commitment to staying at the forefront of advancement in legal technology.” Since the company’s inception in 2011, Nera Capital has grown to become a major global player in the world of litigation finance, with operations across several European locations. The company is a specialised funding provider catering to law firms by extending support across diverse claim portfolios such as financial mis-selling, data breach, Cartel damages, personal injury and Antitrust. 

It previously announced the creation of 10 new jobs in key areas including legal, auditing, finance and origination, after opening a new office in Weert, Netherlands. Aisling added: “I take immense pride in witnessing the remarkable growth of Nera Capital as it expands worldwide.

“In the face of a rapidly evolving world, our industry has often been considered slow to adapt in relative terms. We are determined to break free from that inertia and lead the charge towards meaningful change. By embracing cutting-edge AI technology, we have entered a transformative chapter for our firm. The fusion of innovation and data-driven insights empowers us to navigate legal landscapes with even greater efficiency, ensuring our partnered law firms receive the swift and insightful solutions they deserve which can hopefully speed up the justice process for those that need it.” 

Nera Capital are expected to look at further expansion into new locations in the near future. 

About Nera Capital

  • Established in 2011, Nera Capital is a specialist funding provider to law firms.
  • Provides Law Firm Lend funding across diverse claim portfolios in both the Consumer and Commercial sector.
  • Headquartered in Dublin, the firm also has offices in Manchester and The Netherlands.
  • www.neracapital.com
Community Spotlights
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Member Spotlight: Louisa Klouda

Louisa Klouda is the founder and CEO of Fenchurch Legal. She set up the business in early 2020, after identifying a gap for additional small-ticket litigation funders in the UK market.

Louisa is responsible for day-to-day operations, strategic direction and capital raising. Louisa's expertise in sourcing, underwriting and managing borrowers, as well as attracting investor capital has been instrumental in Fenchurch Legal's growth.

 

Prior to setting up Fenchurch Legal, Louisa worked within corporate finance, specializing in the asset backed lending industry. She managed the broking and dealing desk for secured debt securities, structured various investment products and facilitated some large M&A transactions.

About Fenchurch Legal: Fenchurch Legal is a UK-based litigation financier, specialising in providing disbursement funding to small to medium-sized law firms in the UK. The financing funds small ticket ATE (“After the Event”) cases and covers associated disbursements, all backed by ATE insurance policies. Their focus on smaller claims, often overlooked in traditional funding, ensures that even modest claims, like housing disrepair claims receive the backing necessary to navigate the legal process, ultimately facilitating access to justice and contributing to a more balanced and inclusive legal landscape. Understanding law firm needs, Fenchurch Legal delivers solutions to remove pain points and has developed an offering to avoid problems such as complex drawdown procedures, undisclosed fees, and non-funding of crucial costs like WIP capital. In addition to collaborating with borrowers, we extend the opportunity to investors to invest in this unique market. Fenchurch Legal sets itself apart with a focus on smaller-ticket claims, flexible entry points, and robust security features, making it an accessible and attractive choice for those seeking alternative investment opportunities. The company continues to innovate and has recently developed its own loan management software, providing a bespoke platform for managing loan repayments, monitoring, reporting and onboarding –  significantly enhancing the whole business operations, driving efficiency and enabling the business to scale. Company Website: https://www.fenchurch-legal.co.uk/ Year Founded:  2020 Headquarters:  London Area of Focus: Fenchurch Legal is solely focused on funding smaller cases with an established legal precedent at high volumes. These protocol-driven consumer claims (housing disrepair, Plevin, PCP, financial mis-selling) offer a high potential for success. Member Quote: “The funding market is increasingly recognising the importance of smaller claims. Small ticket litigation funding plays a vital role in the UK legal landscape, offering an alternative approach to financing legal claims. Small-ticket funders like Fenchurch Legal focus on quantity, funding a high volume of smaller cases. Our core strength lies in our deep understanding of the small-ticket claims landscape. We have developed a rigorous and data-driven vetting process tailored to this specific segment of litigation funding, allowing us to identify top-tier law firms and high-potential case types with lower individual risk profiles. At Fenchurch Legal, we believe in the transformative power of small-ticket disbursement funding, and our commitment extends to both law firms and investors. Small-medium law firms can take on cases that might otherwise go unfunded whilst providing an avenue for investors looking for alternative investment opportunities within the litigation funding market.”
Announcements Commercial People Moves

Zachary Segal Joins LCM as an Investment Manager

Litigation Capital Management (LCM) has announced that Zachary Segal has joined the team as an Investment Manager. In a post on LinkedIn, LCM announced the new hire to their over 3,600 followers. Segal has more than 20 years of experience in the legal profession, specializing in all forms of dispute resolution, and in particular international arbitration, including investor-state disputes, and commercial litigation. LCM hopes that with his impressive background, he will play a key role in driving LCM’s growth and success. The team at LCM wrote: "We are thrilled to have Zach onboard and look forward to the valuable contribution he will make to our team."
Announcements Commercial People Moves

DELTA CAPITAL PARTNERS WELCOMES ACCOMPLISHED PRIVATE EQUITY FUND PROFESSIONAL AS CHIEF FINANCIAL OFFICER

Delta Capital Partners Management, a global private equity firm specializing in litigation and legal finance, is pleased to announce that Jonathan Patrick has joined the firm as its Chief Financial Officer and Chief Compliance Officer.  Patrick will be based in the firm’s Chicago headquarters. Patrick will oversee Delta’s finance, accounting, compliance, human resources, and administrative functions; and will work closely with senior management on all capital market activities, tax and valuation matters. Prior to joining Delta, Patrick served for over 10 years as the Controller of EnCap Investments, a leading provider of private equity growth capital (over $20 billion of AUM) to independent energy companies, focusing on treasury, fund operations and management company financial reporting.  Additionally, Patrick spent over five years in public accounting, including time at Deloitte in their Audit and Enterprise Risk Services practice, and has experience in the Treasury and SEC Financial Reporting functions for Ares Management in Los Angeles. Christopher DeLise, Delta’s Founder, CEO, and Co-CIO stated that “Delta is incredibly pleased to have someone of Jonathan’s caliber and expertise join the firm as we continue to scale our business to increase market share and better serve our investors and customers across the globe.  Jonathan’s experience and responsibilities at EnCap will enable him to bring best practices in the areas of private equity, capital markets, and finance to Delta in anticipation of our significant planned growth in 2024 and beyond.” “I am excited to join and look forward to applying my experience and skillset to Delta Capital Partners.  Collaborating with the established team here is such a great opportunity and I am eager to be part of this growth.” said Patrick. About Delta Delta Capital Partners Management LLC is a US-based, global private equity firm specializing exclusively in litigation and legal finance, judgment and award enforcement, and asset recovery.  Delta creates bespoke financing solutions for professional service firms, businesses, governments, financial institutions, investment firms, and individual claimants to enable them to investigate claims, pursue litigation or arbitration, recover assets, enforce judgments or awards, and more effectively manage their risks, cash flow, and capital expenditures.