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Manolete Partners Releases Half-Year Results for the Six Months Ended 30 September 2024

By Harry Moran |

Manolete (AIM:MANO), the leading UK-listed insolvency litigation financing company, today announces its unaudited results for the six months ended 30 September 2024. 

Steven Cooklin, Chief Executive Officer, commented: 

“These are a strong set of results, particularly in terms of organic cash generation. In this six-month period, gross cash collected rose 63% to a new record at £14.3m. That strong organic cash generation comfortably covered all cash operating costs, as well as all cash costs of financing the ongoing portfolio of 413 live cases, enabling Manolete to reduce net debt by £1.25m to £11.9m as at 30 September 2024. 

As a consequence of Manolete completing a record number of 137 case completions, realised revenues rose by 60% to a further record high of £15m. That is a strong indicator of further, and similarly high levels, of near-term future cash generation. A record pipeline of 437 new case investment opportunities were received in this latest six month trading period, underpinning the further strong growth prospects for the business. 

The record £14.3.m gross cash was collected from 253 separate completed cases, highlighting the highly granular and diversified profile of Manolete’s income stream. 

Manolete has generated a Compound Average Growth Rate of 39% in gross cash receipts over the last five H1 trading periods: from H1 FY20 up to and including the current H1 FY25. The resilience of the Manolete business model, even after the extraordinary pressures presented by the extended Covid period, is now clear to see. 

This generated net cash income of £7.6m in H1 FY25 (after payment of all legal costs and all payments made to the numerous insolvent estates on those completed cases), an increase of 66% over the comparative six-month period for the prior year. Net cash income not only exceeded by £4.5m all the cash overheads required to run the Company, it also exceeded all the costs of running Manolete’s ongoing 413 cases, including the 126 new case investments made in H1 FY25. 

The Company recorded its highest ever realised revenues for H1 FY25 of £15.0m, exceeding H1 FY24 by 60%. On average, Manolete receives all the cash owed to it by the defendants of completed cases within approximately 12 months of the cases being legally completed. This impressive 60% rise in realised revenues therefore provides good near-term visibility for a continuation of Manolete’s strong, and well-established, track record of organic, operational cash generation. 

New case investment opportunities arise daily from our wide-ranging, proprietary, UK referral network of insolvency practitioner firms and specialist insolvency and restructuring solicitor practices. We are delighted to report that the referrals for H1 FY25 reached a new H1 company record of 437. A 27% higher volume than in H1 FY24, which was itself a new record for the Company this time last year. That points to a very healthy pipeline as we move forward into the second half of the trading year.” 

Financial highlights: 

  • Total revenues increased by 28% to £14.4m from H1 FY24 (£11.2m) as a result of the outstanding delivery of realised revenues generated in the six months to 30th September 2024.
    • Realised revenues achieved a record level of £15.0m in H1 FY25, a notable increase of 60% on H1 FY24 (£9.4m). This provides good visibility of near-term further strong cash generation, as on average Manolete collects all cash on settled cases within approximately 12 months of the legal settlement of those cases
    • Unrealised revenue in H1 FY25 was £(633k) compared to £1.8m for the comparative H1 FY24. This was due to: (1) the record number of 137 case completions in H1 FY25, which resulted in a beneficial movement from Unrealised revenues to Realised revenues; and (2) the current lower average fair value of new case investments made relative to the higher fair value of the completed cases. The latter point also explains the main reason for the marginally lower gross profit reported of £4.4m in this period, H1 FY25, compared to £5.0m in H1 FY24. 
  • EBIT for H1 FY25 was £0.7m compared to H1 FY24 of £1.6m. As well as the reduced Gross profit contribution explained above, staff costs increased by £165k to £2.3m and based on the standard formula used by the Company to calculate Expected Credit Losses, (“ECL”), generated a charge of £140k (H1 3 FY24: £nil) due to trade debtors rising to £26.8m as at 30 September 2024, compared to £21.7m as at 30 September 2023. The trade debtor increase was driven by the outstanding record level of £15.0m Realised revenues achieved in H1 FY25.
  • Loss Before Tax was (£0.2m) compared to a Profit Before Tax of £0.9m in H1 FY24, due to the above factors together with a lower corporation tax charge being largely offset by higher interest costs. 
  • Basic earnings per share (0.5) pence (H1 FY24: 1.4 pence).
  • Gross cash generated from completed cases increased 63% to £14.3m in the 6 months to 30 September 2024 (H1 FY24: £8.7m). 5-year H1 CAGR: 39%.
  • Cash income from completed cases after payments of all legal costs and payments to Insolvent Estates rose by 66% to £7.6m (H1 FY24: £4.6m). 5-year H1 CAGR: 46%.
  • Net cashflow after all operating costs but before new case investments rose by 193% to £4.5m (H1 FY24: £1.5m). 5-year H1 CAGR: 126%.
  • Net assets as at 30 September 2024 were £40.5m (H1 FY24: £39.8m). Net debt was reduced to £11.9m and comprises borrowings of £12.5m, offset by cash balances of £0.6m. (Net debt as 31 March 2024 was £12.3m.)
  • £5m of the £17.5m HSBC Revolving Credit Facility remains available for use, as at 30 September 2024. That figure does not take into account the Company’s available cash balances referred to above.

Operational highlights:

  • Ongoing delivery of record realised returns: 137 case completions in H1 FY25 representing a 18% increase (116 case realisations in H1 FY24), generating gross settlement proceeds receivable of £13.9m for H1 FY25, which is 51% higher than the H1 FY24 figure of £9.2m. This very strong increase in case settlements provides visibility for further high levels of cash income, as it takes the Company, on average, around 12 months to collect in all cash from previously completed cases.
  • The average realised revenue per completed case (“ARRCC”) for H1 FY25 was £109k, compared to the ARRCC of £81k for H1 FY24. That 35% increase in ARRCC is an important and an encouraging Key Performance Indicator for the Company. Before the onset and impact of the Covid pandemic in 2020, the Company was achieving an ARRCC of approximately £200k. Progress back to that ARRCC level, together with the Company maintaining its recent high case acquisition and case completion volumes, would lead to a material transformation of Company profitability.
  • The 137 cases completed in H1 FY25 had an average case duration of 15.7 months. This was higher than the average case duration of 11.5 months for the 118 cases completed in H1 FY24, because in H1 FY25 Manolete was able to complete a relatively higher number of older cases, as evidenced by the Vintages Table below.
  • Average case duration across Manolete’s full lifetime portfolio of 1,064 completed cases, as at 30 September 2024 was 13.3 months (H1 FY24: 12.7 months).
  • Excluding the Barclays Bounce Back Loan (“BBL”) pilot cases, new case investments remained at historically elevated levels of 126 for H1 FY25 (H1 FY24: 146 new case investments).
  • New case enquiries (again excluding just two Barclays BBL pilot cases from the H1 FY24 figure) achieved another new Company record of 437 in H1 FY25, 27% higher than the H1 FY24 figure of 343. This excellent KPI is a strong indicator of future business performance and activity levels.
  • Stable portfolio of live cases: 413 in progress as at 30 September 2024 (417 as at 30 September 2023) which includes 35 live BBLs.
  • Excluding the Truck Cartel cases, all vintages up to and including the 2019 vintage have now been fully, and legally completed. Only one case remains ongoing in the 2020 vintage. 72% of the Company’s live cases have been signed in the last 18 months.
  • The Truck Cartel cases continue to progress well. As previously reported, settlement discussions, to varying degrees of progress, continue with a number of Defendant manufacturers. Further updates will be provided as concrete outcomes emerge.
  • The Company awaits the appointment of the new Labour Government’s Covid Corruption Commissioner and hopes that appointment will set the clear direction of any further potential material involvement for Manolete in the Government’s BBL recovery programme.
  • The Board proposes no interim dividend for H1 FY25 (H1 FY24: £nil).

The full report of Manolete’s half-year results can be read here.

LegalPay’s CIO Highlights the Opportunities and Challenges for Defense-Side Funding

By Harry Moran |

As the legal funding industry has matured and become a mainstream feature of many jurisdictions’ legal systems, funders are increasingly looking at ways to diversify their activities.

In an article for Insolvency Tracker, Tanya Prasad, CIO of LegalPay, addresses the niche topic of defense-side funding and examines whether there is potential for this type of legal funding to grow in the same way that plaintiff funding has over recent years. Prasad notes that in an environment where “the demand for risk management tools in litigation grows”, large corporations may look to third-party funders to help supplement legal budgets “while potentially achieving favourable outcomes”.

Prasad acknowledges that compared to traditional plaintiff-side funding, defense-side funding “comes with unique challenges”. Whilst claimants may seek to maximise their financial returns in the form of damages and compensation, a defendant will “generally focus on minimizing loss exposure.” As a result of this difference in goals, Prasad suggests that funders would need to not only “employ creative pricing structures”, but would also need to find new metrics to define success.

The latter point is one that Prasad argues is key to creating a viable defense-side funding ecosystem, noting that “establishing a clear definition of success” may have different parameters for different defendants. Examples of this could include structuring funding agreements to incorporate “avoided loss” measures, which would define success based on “achieving a favorable settlement or dismissal at a lower financial cost than anticipated.”

If these difficulties that Prasad highlights can be overcome, she suggests that “defense-side litigation funding has the potential to redefine legal finance, supporting fair representation for both plaintiffs and defendants and expanding access to justice across the board.” Additionally, Prasad points to a handful of examples where defense-side funding has been successfully employed, such as the Gillette v. ShaveLogic case, where Burford Capital provided funding for the defendant to successfully oppose Gillette’s claims of trades secret misappropriation and unfair competition.

Montero Reaches $27M Settlement with Tanzania in Dispute Funded by Omni Bridgeway

By Harry Moran |

The funding of arbitration proceedings brought by mining, exploration and development companies against nation states continues to be a lucrative area for litigation funders, as the announcement of another settlement in one such dispute demonstrates.

A press release from Montero Mining and Exploration Ltd. reveals that the company has reached a $27 million settlement with the government of Tanzania to end the dispute over the expropriation of Montero’s Wigu Hill rare earth element project. The agreement will see the total settlement sum paid out in three tranches over the next three months, with the first payment of $12 million having already been received. Montero noted that whilst the $27 million settlement only represents 39% of the original claim for $70 million, this agreement “obviates the need for a costly and time-consuming hearing, the risk of an adverse award, enforcement efforts, and finally concludes a near 7-year dispute.’

Montero’s arbitration proceedings against the Tanzanian government had been supported via a funding agreement with Omni Bridgeway (Canada), with the litigation funder set to receive an undisclosed return on its investment from the settlement agreement. Whilst Omni Bridgeway’s share of the settlement has not been disclosed, Montero’s announcement did reveal that the funder would receive a distribution from both the first payment and from the second payment of $8 million that is due to be received on or before 31 January 2025. Montero also clarified that “the net amount of the award after repayment to the funder and legal expenses cannot be estimated with certainty and no assurances can be made.”

Montero’s president and CEO, Dr Tony Harwood, provided the following comment on the settlement: ““I am pleased Montero was able to reach an amicable settlement with the government of Tanzania to bring a mutually beneficial end to this dispute. This resolution allows both parties to move forward, and we wish Tanzania every success in attracting new mining investment. I would like to thank our shareholders, board, management, and our legal and technical teams, for their valuable contribution to this outcome.”

Theo Ai Announces $2.2M Pre-Seed Funding to Bring Predictive Analytics to the Legal Industry

By Harry Moran |

Theo Ai, the first predictive AI platform for litigation, announces $2.2MM in pre-seed funding. The round was co-led by NextView and nvp capital with participation from Ripple Ventures, Beat Ventures, and SCVC Fund. Using a proprietary data model and prediction engine, Theo Ai helps legal professionals make educated decisions about the likely outcome of cases. The funding will be used to further enhance their prediction engine, expand practice categories, and accelerate customer growth.

With over 275,000 new lawsuits filed each day, choosing which cases to take is essential for the legal industry. The average mid-sized firm reviews roughly 650 cases per year, which can take anywhere between 7 to 30 days to manually review. With Theo Ai, that time is compressed into seconds - allowing legal teams to cover more ground and focus on winning cases. Led by Alex Alben (UCLA Law Professor and Tech Executive), Patrick Ip (ex-Google and UCLA Law MLS) and Tiago Luchini (4x CTO/Founder), Theo Ai is the first predictive tool to fully leverage the power of AI. Theo Ai enables customers to identify and predict cases with the highest odds of success, uncover cases they might have missed, and access case summaries and key financial drivers all in a single offering.

"With backgrounds in both law and tech, Theo Ai's leadership team understands the complexities legal firms face and how to leverage advanced technology to address those challenges," says Co-Founder and Partner at NextView, Rob Go. "Their experience allows them to build a platform that addresses the needs of the everyday economy and truly reflects the nuances of legal decision-making, giving customers a significant edge in strategy and case outcomes."

"The legal industry is undergoing significant change and this technology will accelerate the drive towards efficiency and prediction analysis. Theo Ai is perfectly timed to address the increasing demand for next-gen B2B tools," says Dan Borok, Managing Partner at nvp. "With a stellar team that has decades of expertise in both law and tech, Theo Ai is delivering the right solution when firms need it."

"When the Ripple Ventures team first met the Theo Ai team, it was clear they had a deep understanding of customer workflows and pain points, rooted in their extensive legal expertise. Their vision for transforming the legacy legal industry with AI, combined with a proven track record as repeat founders, gave us strong confidence in their ability to execute," says Dom Lau, Partner at Ripple Ventures.

The ability to accurately predict a case's outcome is a game changer for legal professionals. By analyzing similar cases and likely arguments, Theo Ai's data model estimates the probability of winning a case, in addition to predicting the estimated award. Early users of Theo Ai found that the platform's algorithms verified the results of their underwriting and due diligence teams. With Theo Ai, firms have access to a data-driven pipeline using real-time analytics and predictive modeling as new facts and evidence emerge.

To learn more and join the waitlist for Theo Ai, visit: https://theoai.ai/#product

About Theo Ai
Theo Ai is the first predictive engine designed by technical and legal professionals to forecast the outcome of legal disputes. Its AI models are trained on historical case data and incorporate real-time analytics with predictive modeling to deliver accurate and actionable insights. Theo Ai is meeting the most critical need for legal professionals - offering accurate case outcome predictions, backed by data. To learn more and join the waitlist for Theo Ai, visit: https://theoai.ai/#product

Community Spotlights

Community Spotlight: Carlos Ara Triadu, Partner, CUATRECASAS

By John Freund |

Company Name and Description: CUATRECASAS - a leading multi-disciplinary Spanish law firm, providing comprehensive legal services to clients across various industries. With a strong presence in Spain, Portugal, and Latin America, among others, the firm is recognized for its innovative solutions and commitment to excellence.  

Company Website: https://www.cuatrecasas.com/en/spain/

Year Founded: 1917

Headquarters: Barcelona and Madrid (Spain).

Area of Focus: Litigation Funding and Restructuring

International Legal Finance Association Welcomes First Global Director of Growth and Membership Engagement

The International Legal Finance Association (ILFA) today announced the recruitment of Rupert Cunningham as Global Director of Growth and Membership Engagement. In this role, Rupert will work to drive ILFA’s membership growth and retention, provide leadership and management to serve ILFA members, and promote global education and awareness of litigation finance.

Prior to joining ILFA, Rupert served as a Special Adviser to UK Justice Secretary and Lord Chancellor Alex Chalk KC. He advised the Lord Chancellor on courts, sentencing, and legal services policy and shepherded legislation to support the legal finance industry in England and Wales. Before his work in government, Rupert worked as a public affairs and policy consultant, helping build coalitions of clients and trade associations to achieve positive political outcomes.

“We are thrilled to announce the addition of Rupert Cunningham,” said Shannon Campagna, ILFA’s interim Executive Director. “Rupert’s experience working with membership and trade associations to build coalitions across industries and in the UK’s Ministry of Justice makes him uniquely suited for leading ILFA’s global growth and engagement.”

“I am delighted to be joining ILFA, the leading global organization advocating for the legal finance sector,” Rupert Cunningham said. “When I was in the Ministry of Justice, I saw firsthand how important third-party funding is for promoting access to justice, so I am glad to be supporting the industry by expanding ILFA’s membership and helping members amplify their voice with industry stakeholders and policymakers worldwide.” 

Rupert’s appointment demonstrates ILFA’s commitment to expanding legal finance industry representation across continents and extending the industry’s reach with legislative, regulatory, and judicial policymakers worldwide.

About the International Legal Finance Association   

The International Legal Finance Association (ILFA) represents the global commercial legal finance community, and its mission is to engage, educate, and influence legislative, regulatory, and judicial landscapes as the voice of the commercial legal finance industry. It is the only global association of commercial legal finance companies and is an independent, non-profit trade association promoting the highest standards of operation and service for the commercial legal finance sector. ILFA has local chapter representation around the world.  

For more information, visit www.ilfa.com and find us on LinkedIn and X @ILFA_Official.

The Future of Litigation Funding Regulation Under the Trump Administration 

Following this month’s elections in the United States, litigation funding leaders and industry observers have begun to try and predict what the change in government at the federal level may mean for efforts to increase regulation and oversight of the litigation finance industry.

An article in The American Lawyer looks at the issue of increased regulation for litigation funding through the lens of the election, getting the views of industry experts as to what approach the incoming GOP trifecta might take. With one piece of draft legislation focusing on funding disclosure already introduced to the House, courtesy of Rep. Darrell Issa of California, lawyers and funders alike are anxious to see whether the Trump administration will take a more combative approach to third-party funding.

Broadly speaking, the view from industry appears to be split on whether the attitudes of Congress and the White House will be aligned on this issue. Charles Agee, CEO of Westfleet Advisors, said that “regulating the litigation finance industry does not seem to be at the top of the agenda for the Trump administration”. Whilst Dai Wai Chin Feman, managing director at Parabellum Capital, noted that Trump has previously exhibited a trend towards appointing judges with less litigation experience, which may harm the industry as it could “inject more variability in litigation funders' ability to underwrite outcomes.” 

Paul Haskel, partner with Crowell & Moring, agreed that regulating third-party funding may not be a high priority for President Trump, but suggested that the commonly-repeated claim that funding acts as a route for foreign actors to malignly influence US interests could be “an appealing way for this administration to attack it.” Similarly, Mark Behrens of Shook Hardy & Bacon, suggested that over on Capitol Hill, “the new congressional leadership provides a reason for optimism that there will be increased attention paid to the disclosure of commercial third-party litigation financing and the involvement of foreign funders in U.S. litigation.” 

Seeking to gain some insight into any provisional policy position that the new administration might hold, The American Lawyer contacted the Trump transition team for a comment. However, spokesperson Karoline Leavitt did not provide a direct answer to the question, instead emphasizing that Trump had been re-elected “by a resounding margin giving him a mandate to implement the promises he made on the campaign trail.”

Legal-Bay Announces Judge’s Intent to Upend $38MM Sex Abuse Valuation in New Hampshire YDC Case

Legal-Bay, The Pre Settlement Funding Company, announced today that a New Hampshire court has just tossed out an initial $38 million award in favor of a paltry $475k payout even the presiding judge is calling "an unconscionable miscarriage of justice."

Plaintiff David Meehan originally filed suit for the 100+ sexual abuse violations he suffered as a minor at a youth detention center in the 1990s. It turns out, he wasn't the only victim. The case has garnered tremendous headlines for the egregious abuses inflicted upon underage boys and girls at that facility for years. As the whistleblower, Meehan was in a unique position to help subsequent victims who came forward with their own claims of abuse, the first of many to testify. One can only imagine the bravery it must have taken to recount in graphic detail the sexual misconduct he endured as a minor. While the case played out online and through the media, the opinion that mattered most was the jury's; they found Meehan credible enough to award him $38 million, citing personal injury and punitive damages.

However, the jury instructions were not clear, and a technicality has now ensued: According to the verdict sheet, the jurors only listed "1 incident" on the jury form returned to the court after deliberations. Meehan's lawyers, Rus Rilee and David Vicinanzo, had argued off the record that there needed to be more clarity to jurors, but to no avail. State law dictates that $475K is the cap per incident.

After hearing of the state's assertion that the verdict was going to be revised down to $475k, several jurors reached out to Rilee to explain themselves regarding the misunderstanding and their intentions. They felt horrible about the lowered settlement amount and expressed how misinformed they were about the jury instructions in the case. Even the judge in a post-trial order felt the weight of the evidence reflected more than purely a lone incident. (Jurors have clarified post-trial that they meant one ongoing incident of PTSD from the abuse, and not one instance of the abuse itself, because clearly, they all believed his account of how he'd been raped multiple times on numerous occasions.)  

Chris Janish, CEO of Legal Bay, commented, "Legal-Bay has been one of the only companies who has been funding YDC cases since the start. So, with full disclosure, it is without question that we have a vested interest in seeing the plaintiffs prevail. However, aside from our personal belief in the veracity of the claims made, this new verdict is one of the gravest civil injustices our company has witnessed in almost twenty years of doing business. David Meehan was the first to report the abuse and win his case at trial, and now others stand to reap more from his courageous efforts than he will. We understand the state's motivation to protect its taxpayers to some extent, but something just seems amiss here. We are optimistic that the civil justice system and politicians who support their local constituents will work out a more reasonable resolution whether through the courts or otherwise. And we hope that not only Meehan, but all the victims will get justice for the atrocities that occurred in the youth detention centers of New Hampshire and across the nation. That seems to be lost on the defense team and state's position throughout all this, which is disappointing."

If you're a lawyer or plaintiff involved in an active sexual abuse lawsuit of any kind and need an immediate cash advance against an impending lawsuit settlement, please visit Legal-Bay HERE or call toll-free at 877.571.0405.

Legal Bay reports that the New Hampshire YDC litigation has over 1400 cases filed to date. When Legal Bay began funding early on—when no other company would—there were just eight plaintiffs. The company says the other victims have David Meehan and Rus Rilee to thank for their courage to take on the state in what has become one of the most egregious criminal and civil violations of children's rights in U.S. History. 

Whatever the ultimate resolution, YDC cases in N.H. look to be winding down. But that is not the situation in many other litigations nationwide. There are tens of thousands of plaintiffs awaiting justice in many youth detention center cases across the country, as well as other similar litigations that will take time to resolve. Some of them include Mac Hall and foster home sex abuse cases in Los Angeles, CA, southern California clergy cases, New York and New Jersey Catholic Diocese church lawsuits, Boy Scouts of America sexual abuse cases, sex abuse at youth correctional facilities, at sports facilities, and by coaches, camp counselors, teachers, and sadly, many more.

YDC is not an isolated problem. Childhood sexual abuse litigations all over the country are emerging, and the psychological damage caused by so many is beyond what everyday society can even comprehend. Legal Bay is at the forefront of each and every one of these litigations, doing their best to support the victims to get their lives back in order and help them receive justice.

If you're a lawyer or plaintiff involved in an active sexual abuse lawsuit of any kind and need an immediate cash advance against an impending lawsuit settlement, please visit Legal-Bay HERE or call toll-free at 877.571.0405.

Settlement amounts for sex abuse survivors vary widely, and appeals are almost immediately filed, holding up payouts indefinitely. Commercial litigation funding is available while plaintiffs wait out a verdict on appeal, and large pre-settlement funding can be obtained while the verdicts go through the appellate process. 

In larger cases involving organizations like the Catholic Church or Boy Scouts of America, settlements could be in the $100K settlement amount range for even the worst abuses. In cases with smaller class actions or mass torts (less than 50 people), settlement ranges for the highest level of sex abuses can be between $500K and $5MM. 

Legal Bay's loan for settlement funding programs are designed to provide immediate cash in advance of a plaintiff's anticipated monetary award. While it's common to refer to these legal funding requests as settlement loans, loans for settlements, lawsuit loans, loans for lawsuits, etc., the "lawsuit loan" funds are, in fact, non-recourse. That means there's no risk when it comes to loans in lawsuit settlements because there is no obligation to repay the money if the recipient loses their case. Therefore, terms like settlement loan, loans for lawsuit, loans on settlement, or lawsuit loan funds don't necessarily apply, as the "loan on lawsuit" isn't really a loan at all, but rather a stress-free cash advance.

Legal-Bay is known to many as the best legal funding company in the industry for their helpful and knowledgeable staff, and one of the best lawsuit loan companies overall for their low rates and quick turnaround, sometimes within 24-48 hours once all documents have been received.

Amber Cardillo, Legal-Bay's Head of Sex Abuse Funding commented, "We understand the different sex abuse litigations throughout the country better than any other funding company in the industry. Unfortunately, each one is different, and settlement values are based on many factors. We try to work with each victim compassionately and get them the help they need. We welcome all to call and try even if their church is in bankruptcy or if they have been denied additional funding by other companies." 

To apply right now for a loan settlement program, please visit the company's website HERE or call toll-free at: 877.571.0405 where agents are standing by to answer any questions.

Sandfield Capital Secures £10.5M Funding Facility to Expand Operations

As policymakers and legal experts debate what the future of UK litigation funding should look like, it is clear that even smaller regional funders continue to attract investor interest as they look to take a larger share of the market.

An article in TheBusinessDesk covers the news that Sandfield Capital has agreed a £10.5 million funding facility from an unnamed Canadian investor, with the deal arranged by Altimapa Capital. This latest deal is reportedly part of Sandfield’s £100 million fundraising effort led by Altimapa, with the debt finance specialist having already secured a £20 million facility in December 2023.

The Liverpool-based funder was founded in 2020 and has since expanded its footprint to include an office in London, secured the new funding facility to support its growth plans both in terms of hiring additional staff and broaden the range of cases it funds. Over the last four years, Sandfield has provided funding for a variety of claims including those targeting brokers for undisclosed commissions, landlords for failures to maintain rental properties, and claims over Military Hearing Loss.

Sandfield Capital’s CEO, Steven D’Ambrosio, said that the funder has witnessed “a dramatic increase in undisclosed commissions and housing disrepair cases following news coverage and increased awareness of the legal remedies available.” D’Ambrosio explained that the £10.5 infusion of capital would allow Sandfield to support these claims and “enable many more people to bring their case to court.”

Pedro Tavares, CEO of Altimapa, provided the following comment on the deal: “We’re pleased to have secured an additional £10.5m credit facility for Sandfield Capital. It underscores our ability to bring international capital to UK businesses and the attractiveness of the civil litigation market to a widening, and increasingly international, panel of investors.”

Trellis Launches Trellis AI to Revolutionize Trial Court Litigation

Today, Trellis launched Trellis AI, a powerful new legal productivity platform designed for the complex needs of trial court litigation. Built on Trellis' industry-leading trial court data foundation—which is the most comprehensive database of its kind in the US—Trellis AI offers tools that empower legal teams to harness data and insights in transformative ways. By automating litigation tasks like motion drafting and case evaluations, Trellis AI transforms the way litigators approach case work with greater accuracy, efficiency, and strategic insight.

Trellis is an AI-driven legal research and insights platform offering access to the largest and most comprehensive US trial court database. This extensive database includes dockets, documents, rulings, judge, law firm, and company analytics, with unmatched coverage across states, counties, and courts.

Trellis AI leverages this extensive data foundation along with advanced language models to deliver precise insights that enhance decision-making, case preparation, and litigation strategy. Designed for legal professionals, it streamlines strategic work like case assessments and motion argument development while automating time-consuming tasks such as motion drafting, client updates, and discovery preparation. These efficiencies free up attorneys to focus on strategic decision-making and client advocacy.

"Trellis is uniquely positioned to support attorneys within the very court system where their cases are filed," said Nicole Clark, CEO and cofounder of Trellis and a former litigator. "Trellis provides access to hundreds of millions of motions and briefs, representing millions of hours of attorney blood, sweat, and tears in research and drafting. It's why Trellis AI stands as the only tool to offer one-click solutions to create work product backed by the entire court system and learnings from every trial court litigator who came before them."

Unlocking New Litigation Strategies

Trellis AI is designed to support every stage of the case lifecycle, delivering impactful work product powered by Trellis' extensive data. Its feature suite tackles common litigation challenges by automating routine tasks and providing strategic insights grounded in the nation's most trusted court data.

For example, "Draft Arguments" is a powerful motion drafting tool that can save hours of work, allowing attorneys to focus on their strongest arguments. Trellis AI uses the details and facts of the case to create tailored draft motions, drawing from its extensive database of similar cases to suggest strategic, fact-supported arguments. Each draft incorporates insights from hundreds of thousands of successful trial court motions, offering attorneys an innovative solution that transforms how they approach motion drafting.

Another tool is "Case Assessment" which evaluates key case elements to guide strategic decision-making. Trellis AI examines case facts, legal claims, and defenses to provide detailed insights into potential outcomes, recommended actions, and risk factors. Each assessment delivers actionable intelligence and recommended next steps to inform decisions on case management, settlement strategies, and trial preparation. This empowers attorneys to keep their clients informed, offer strategic recommendations, and leverage an internal knowledge base of strategies and insights for each case.

The remainder of Trellis AI's tools streamline important tasks like complaint analysis, defense strategy development, argument evaluation, timeline creation, citation extraction, and more. All tools were created and meticulously tested by Trellis' teams of product attorneys and experienced litigators.

Precision and Security at the Core

Trellis AI is designed for ease-of-use without sacrificing security or accuracy. All uploaded documents are encrypted at rest, aligning with SOC 2 standards to protect sensitive information. Additionally, Trellis AI reduces the risk of errors or bias in its outputs, enabling legal teams to concentrate on insights rather than processes. It also provides options for easy verification and source checking, ensuring greater confidence and peace of mind.

"The potential for AI to transform the legal field depends on the quality and depth of data behind it," said Alon Shwartz, CPO and cofounder of Trellis. "Our data foundation is the cornerstone of Trellis AI, providing a wealth of high-quality information that drives actionable recommendations and meaningful insights. By prioritizing data integrity and implementing rigorous security measures, we've built a platform attorneys can trust to streamline workflows and make strategic decisions confidently."

For more information, click here to book a demo or to get started with Trellis AI.

About Trellis

About Trellis

Trellis is the leading provider of state trial court data and insights, serving tens of thousands of law firms and litigators daily with insights and coverage across 3,000+ courts in over 2,500 counties, spanning 45 states. Trellis offers an extensive suite of state trial court intelligence and productivity tools for litigators, including detailed judge bios and analytics, thorough case assessments, argument drafting and generation, litigation insights across both law firms and corporations, daily reports on new filings, customizable alerts, and much more. Explore more or book a demo at trellis.law.

Community Spotlights

Community Spotlight: Philippa Wilkinson, Associate Director, S-RM

By John Freund |

Philippa Wilkinson is an Associate Director on S-RM’s Disputes & Investigations team, which is dedicated to providing investigative support to parties to contentious situations. She has experience managing asset tracing investigations, as well as litigation and arbitration support engagements, associated with complex corporate disputes. While her practice is global, Philippa specialises in matters involving Middle Eastern parties, having spent several years in the Middle East, living and working in Tunisia and the UAE. She previously worked as a journalist covering finance and infrastructure in the GCC and wider Middle East, and subsequently covering European infrastructure funds. Philippa has an MA in Near and Middle Eastern Studies from the School of African and Oriental Studies, and a BA in Modern Languages from Durham University. She is a fluent Arabic, Spanish and French speaker.

Company Name and Description: S-RM is a global risk and intelligence consultancy. Founded in 2005, our staff comprises 350+ practitioners across eight international offices, serving clients across all regions and major sectors. Headquartered in London with offices in Cape Town, Hong Kong, Singapore, Kuala Lumpur, New York, Utrecht and Washington, D.C., we support our clients by providing intelligence that informs critical decision-making and strategies.

Our dedicated Disputes & Investigations practice was established to provide specialist support to clients engaged in contentious situations. Our intelligence is deployed in a number of scenarios including litigation, international arbitration, internal investigations and investigations related to sanctions or fraud. We provide a full spectrum of dispute-focused services including asset tracing and enforcement strategy; litigation support; eDiscovery and digital forensics; and strategic intelligence. S-RM’s investigators sit alongside cyber security experts and seasoned crisis managers. Our investigations involve their collaboration on a regular basis, be it for physical surveillance, expert witness support, or digital forensics. Since 2021, our practice has received international recognition by leading legal directories, including Chambers & Partners and Who Who’s Legal (Lexology Index).

S-RM’s research and analysis is provided by six regional teams, which provide expert coverage of a range of jurisdictions globally, from the most prominent to some of the smallest and most obscure. Collectively, S-RM’s analysts and managers speak over 45 languages and have come to the business from a broad range of sectors including intelligence, government, finance, journalism, the military and academia. Each team is adept at locating hard-to-find public records and has built an extensive network of human sources on the ground in their region. On every project, we bring together the most relevant and experienced practitioners from across our business, creating teams designed to address unique problems and complex challenges.

Company Website: https://www.s-rminform.com/

Year Founded: 2005 

Headquarters: 4th Floor Beaufort House, 15 St Botolph Street, London, Greater London, EC3A 7DT 

Area of Focus: Corporate intelligence  

Member Quote: “Through our asset tracing work and enforcement advisory, we make sure a judgment or an award is not just a very expensive piece of paper, but a pathway to recovery.”

LPF Group Appoints Former High Court Judge as Director

By Harry Moran |

In an announcement released earlier this week by LPF Group, the New Zealand litigation funder revealed that it had strengthened its board with the appointment of Judge Robert Dobson KC as a director. Mr Dobson brings a wealth of experience as both a commercial lawyer and judge, having served on the High Court from 2007 to 2020. Mr Dobson briefling returned to the bench as an acting judge on the Court of Appeal in 2022, before returning to his arbitration and mediation practice at Stout Street Chambers.

Phil Newland, founder and director of LPF, said “LPF is delighted to have Mr Dobson, a proven jurist with substantial legal and judicial experience join the board at such an important time for the development of class action law in New Zealand.”

Commenting on his new role, Mr Dobson stated: “Having observed LPF’s role from a different perspective for many years I now look forward to playing a part in continuing the development of litigation funding and assisting access to justice. I am very much looking forward to joining LPF in helping meritorious cases attract funding in the pursuit of justice.”

In addition to the appointment of Mr Dobson, LPF also stated that the company’s current Chairman, Bill Wilson KC, will be moving to the position of Emeritus Chair to provide continuing support to the funder’s board. Newland praised Wilson’s work during his time at LPF by saying “With Bill’s strong support LPF has assisted many thousands of New Zealanders to achieve redress, including in leading cases such as Mainzeal, Kiwifruit and in the recent CBL and Intueri shareholder class actions.”

CAT Chairman: “Funding is Essential” for Collective Proceedings Success

By Harry Moran |

Following the publication of the Civil Justice Council’s interim report on litigation funding, industry leaders and experts have opined on the future direction of UK’s funding market. At a recent industry conference, attendees were treated to the views of the head of one of the country’s most important judicial bodies when it comes to litigation funding.

Reporting by CDR covers remarks delivered by Andrew Lenon KC, chairman of the Competition Appeal Tribunal (CAT) at the Global Class Actions Symposium. The keynote speech on the second day of the symposium saw Lenon discuss the current state of the CAT and the involvement of third-party funding, which he described as “essential to the success of the collective proceedings regime.”

Lenon noted that despite the period of uncertainty in the initial aftermath of the PACCAR decision, he suggested that “it seems likely that the UK market for litigation funding and collective proceedings will continue to grow.” Furthermore, Lenon argued that in this growth environment, the result would be the emergence of a “fully functioning competitive market for litigation funding.”

The CAT’s chairman emphasised the tribunal’s role “to clarify the legal principles relating to funding arrangements”, with a focus on ensuring that “collective proceedings do not become a cash cow to funders and lawyers, with minimal returns to class members.” However, in a welcome nod to funders and lawyers alike, Lenon assured that the CAT “will be slow to interfere with funding arrangements freely negotiated between funders and class representatives.”

Whilst he acknowledged that the CAT must keep a close eye to ensure that funder’s fees and legal costs do not spiral out of control, Lenon agreed that it was “entirely legitimate for funders to seek a return on their investment.” In summarising the CAT’s position on interfering with litigation funding agreements, Lenon said that “the tribunal should therefore be slow to second guess.”

Which? Files £3 Billion Cloud Claim Against Apple, Funded by LCM

By Harry Moran |

The growth of multinational technology corporations has provided years of product innovation and a mass availability of affordable consumer electronics. However, the resulting monopolies that have risen to dominate these markets have also created space for the potential for anti-competitive behaviour that harms consumers. In this environment, it is unsurprising we are seeing more and more claims being brought against these tech giants, with the legal proceedings supported by third-party litigation funders.

An article in TechCrunch covers the announcement of a new collective action being brought against Apple by the UK consumer rights group Which?, representing up to 40 million consumers over allegations that Apple breached competition law by overcharging users of the iCloud service. The opt-out proceedings, valued at approximately £3 billion, claims that Apple abused its monopoly position to favour iCloud over competing cloud storage providers and locking in customers to the iCloud services, thereby preventing them from switching to a competitor and enabling Apple to charge increasingly higher fees.

The application for certification was filed with the Competition Appeal Tribunal (CAT) on 8 November 2024, with the claim seeking to represent any UK consumer who used an iOS device or iCloud services from 1 October 2025 onwards. This nine year time period is particularly relevant as it follows the introduction of the Consumer Rights Act from that date. The claims is being funded by Litigation Capital Management (LCM), with litigation risk insurance having been secured to cover Apple’s legal costs if the claim is not successful

More information about the collective proceedings can be found on the Cloud Claim website.

In response to this new legal action being brought, Apple spokesperson Tom Parker provided the following statement: “Apple believes in providing our customers with choices. Our users are not required to use iCloud, and many rely on a wide range of third-party alternatives for data storage. In addition, we work hard to make data transfer as easy as possible — whether its to iCloud or another service. We reject any suggestion that our iCloud practices are anticompetitive and will vigorously defend against any legal claim otherwise.”

Community Spotlights

Community Spotlight: Obaid Saeed Bin Mes’har

With over 26 years of extensive experience in Telecommunications Management and more than 15 years specializing in Dispute Resolution and Financial Claims, Obaid Bin Mes’har is a distinguished leader and expert in both fields. As the founder of Taswiyah Consultancy and Settlement of Claims in Dubai, UAE, he has established a strong reputation for resolving complex commercial and civil disputes.

Obaid's expertise encompasses acting as an Arbitrator, Mediator, Negotiator, Counsellor, and Legal Representative, focusing on Mediation, Arbitration, Financial Settlement Claims, Debt Purchase, and Litigation Funding across national and international sectors. His professional journey has touched industries such as Telecommunications, Utilities, Construction, and Finance, as well as Mergers & Acquisitions in the International Markets.

Company Name and Description: WinJustice is the first UAE-based firm dedicated exclusively to litigation funding, established to empower individuals and businesses in their pursuit of justice. With a clear vision to transform the legal landscape, we provide innovative financial solutions that enable our clients to navigate complex legal proceedings without the burden of financial constraints.

Company Website: https://winjustice.com/

Year Founded: 2024

Headquarters: Abu Dhabi, United Arab Emirates

Area of Focus:  WinJustice focuses on delivering tailored litigation funding solutions that empower diverse clients, from individual claimants to SMEs and multinational corporations. Our expertise spans supporting arbitration cases, commercial litigation, and financial settlements. We prioritize access to justice for clients facing financial constraints, enabling them to pursue strong legal claims without the burden of legal expenses. This includes assisting financially stressed firms, the manufacturing and industrial sectors, and service-oriented businesses in overcoming the challenges of complex legal disputes.

Member Quote: “Litigation funding is not just a financial solution; it’s a powerful tool for justice. At WinJustice, we believe that everyone deserves the chance to pursue their legal rights without the fear of financial barriers.”

Community Spotlights

Community Spotlight: Guillermo Ruiz Medrano, Attorney, CUATRECASAS

By John Freund |

Guillermo Ruiz Medrano is a Spanish lawyer based in Barcelona, specializing in advising local and international clients on litigation finance deals and restructuring transactions, with a focus on international and cross-border deals, and engaged in the implementation of cutting-edge litigation funding structures.

Company Name and Description: CUATRECASAS - a leading multi-disciplinary Spanish law firm, providing comprehensive legal services to clients across various industries. With a strong presence in Spain, Portugal, and Latin America, among others, the firm is recognized for its innovative solutions and commitment to excellence.  

Company Website: https://www.cuatrecasas.com/en/spain/

Year Founded: 1917

Headquarters: Barcelona and Madrid (Spain).

Area of Focus: Litigation Funding and Restructuring

Member Quote: Litigation funding in Spain is experiencing a dynamic transformation, making it an exciting jurisdiction for both national and international players. With the market expanding rapidly and new regulations on the horizon, particularly for consumer cases, Spain offers a fertile ground for innovative funding solutions. This burgeoning landscape ensures that litigation funding here is not only robust but also poised for sustainable growth, making Spain a premier destination for legal investment.

Pegasus Legal Capital Completes $74 Million Securitization to Fuel Growth

Pegasus Legal Capital, LLC ("Pegasus") (mylawfunds.com), a prominent pre-settlement legal funding company in the United States, announced today that it has successfully completed a $74 million litigation finance securitization. This achievement marks Pegasus' second securitization transaction in the asset class and another significant milestone in its capital market journey. The proceeds from this transaction will further propel Pegasus' growth across key markets in the United States.

Pegasus Managing Director, Alexander Khanas, expressed, "With the successful completion of this transaction, Pegasus will expand its business in the personal injury market while upholding its industry-leading service standards."

GreensLedge Capital Markets LLC played the role of Placement Agent for Pegasus. GreensLedge Senior Managing Director, Douglas Lipton, added, "We are delighted to continue expanding Pegasus' investor base through their second securitization issuance and assisting them in creatively developing their platform."

Headquartered in Deerfield Beach, Florida, Pegasus was founded in 2008 as a pre-settlement litigation finance company. Since its inception, the company's management team has successfully sourced, underwritten, and serviced over half a billion dollars through more than 30,000 advances. While Pegasus has traditionally focused on the New York market, it has established a strong presence in the Southeast and Texas markets as well.

Pegasus is a proud member of the American Legal Finance Association (ALFA), a national organization comprising companies that provide non-recourse funds to personal injury victims. ALFA's primary objective is to establish industry standards for transparency in legal funding transactions, ensuring upfront and clear disclosure to consumers.

Litigation Lending Appoints Emma Colantonio as Chief Investment Officer

In a post on LinkedIn, Australian funder Litigation Lending Services (LLS) announced the promotion of Emma Colantonio to the position of Chief Investment Officer. In the announcement, LLS said that Emma’s dedication and strategic insight have been instrumental to the success of the business.

Colantonio joined LLS in 2021 as an investment manager and served in that role for two years before being promoted to senior investment manager in May 2023. Prior to joining LLS in 2021, Colantonio had also spent five years at MinterEllison as a senior associate, as well as having served as a senior legal counsel at Commonwealth Bank. 

In her own post on LinkedIn, Colantonio provided the following comment: “Excited to step into the role as Chief Investment Officer at Litigation Lending Services Limited! A big thank you to the leadership team for their trust and support. Looking forward to driving our mission forward and exploring new opportunities in litigation funding.”As LFJ reported in August of this year, Colantonio was recently appointed to the board of The Association of Litigation Funders of Australia (AALF) as a non executive director, replacing LLS’ own Stephen Conrad in that position.

IQuote Acquires Over 1,000 Cryptocurrency Claims

The enthusiasm for cryptocurrency over recent years has seen retail investors look to these digital assets as a route to impressive financial returns. However, this relatively nascent and unregulated asset class has also resulted in a significant amount of malpractice and criminal activity, leading to a surge in related legal cases that some funders are engaging with.

An article in TheBusinessDesk covers the news that IQuote, a Manchester-based litigation funder, has acquired over 1,000 claims related to cryptocurrency fraud. The cases that IQuote is funding are being brought by individuals who have been the victims of crypto scams or had their digital assets stolen. IQuote’s acquisition of these claims was achieved both through marketing efforts and organic traffic, with the individual value of the cases ranging from £10,000 to £10 million.

Craig Cornick, founder and chief executive, stated: “At IQuote, we are continually evolving our funding strategies to stay aligned with the dynamic and rapidly changing litigation landscape and are committed to helping victims receive justice. Our goal is to ensure that our financial solutions not only meet the current demands of the legal industry but also anticipate future trends, providing innovative and sustainable funding options for our clients.”

New Burford Capital Research Reveals How Businesses are Preparing for Likely Rise in Global Energy Transition Disputes

By Harry Moran |

Burford Capital, the leading global finance and asset management firm focused on law, today releases new research entitled “Energy transition disputes: GCs and senior lawyers on the business impacts of legal challenges to come,” which demonstrates how businesses are preparing for a likely rise in legal disputes related to the global energy transition. This transition―or the shift to renewable sources of energy―is likely to cause an increase in expensive commercial disputes.

Businesses are investing significant sums in this transition, and corporate commitments highlight the scale of economic engagement as they invest in the new technologies, infrastructure and other resources that will be needed. But multifaceted legal and commercial pressures present businesses with a myriad of potential challenges including contractual disagreements, regulatory compliance issues and the need for intellectual property enforcement or litigation. Burford’s research report aims to offer a unique perspective on how corporations foresee the expected rise in litigation and arbitration related to this energy transition, examining the areas of business impact related to this evolving landscape.

Burford commissioned this independent research by capturing insights from 300 GCs and heads of litigation across key industries impacted by the energy transition and spanning North America, Europe, Asia and Australia.

Key findings from the study include:

Disputes relating to the energy transition are rising

·       76% of GCs report they are already encountering disputes related to the energy transition and nearly half (47%) expect a further rise in the volume of such disputes in the next decade, driven by evolving laws, new technologies and infrastructure requirements.

Disputes relating to the energy transition are expected to be costly

·       Almost two in three GCs (63%) expect legal fees and expenses to exceed $4 million per energy transition case; a notable minority (29%) expect per case costs to exceed $10 million.

·       Over half (52%) view high costs as a significant factor in deciding not to pursue disputes.

·       Half (50%) of GCs agree that the energy transition will create the need for additional capital sources for the business.

Expected disputes span all types of business conflict

·       GCs are most likely to predict (77%) that the energy transition will result in more contractual disputes and commercial arbitration.

·       Joint ventures are expected to be particularly prone to disputes over profit allocation (76%) and intellectual property rights (65%).

·       Over half of GCs (57%) also expect their businesses to face arbitrations to resolve investor-state conflicts relating to the transition.

New tools are needed to manage the rising dispute costs

·       Legal finance is increasingly used to mitigate the financial burden of these disputes; three in four (75%) GCs have used or would consider using legal finance to offset the cost of disputes relating to this transition.

·       In particular, GCs value monetization―or advancing some of the expected entitlement of a pending claim, judgment or award― to generate liquidity from claims tied up in litigation and arbitration. With legal finance, companies can also offset the cost of pursuing affirmative litigation to generate liquidity, shifting legal departments from cost centers to value drivers.

Christopher Bogart, CEO of Burford Capital, said: “Businesses face significant challenges related to the global energy transition due to cross-border projects, differing legal frameworks and rapidly evolving policies. Additionally, long-term energy contracts may not keep pace with energy markets and technologies, resulting in conflicts among stakeholders. Burford’s latest research demonstrates the value of corporate finance for law, as legal finance helps companies manage the high costs of energy transition disputes and allows them to pursue meritorious claims without depleting resources.”

Burford’s research is based on a 2024 survey conducted by GLG and is supplemented by interviews with ten global energy transition experts conducted by Ari Kaplan Advisors.

The research report can be downloaded on Burford’s website.

Community Spotlights

Community Spotlight: Jason Geisker, Head of Claims Funding Australia

By John Freund |

Jason Geisker is the Head of Claims Funding Australia (CFA), the litigation funding arm and wholly owned subsidiary of Maurice Blackburn Lawyers in Australia. He also serves as a Principal Lawyer at Maurice Blackburn’s Sydney office. With over 30 years of experience in commercial litigation and class actions, Jason has been recognized by his peers in the Doyles’ Guide rankings in Australia as a leading lawyer in commercial litigation/dispute resolution and class actions.

Jason holds a Master of Laws from the University of New South Wales. Since his admission to practice in 1996, he has been involved in several high-profile cases, including shareholder, investor, and consumer class actions. Notably, Jason led the Australian class actions against Volkswagen, Audi, and Skoda following the global ‘dieselgate’ scandal, resulting in settlements exceeding $170 million for over 100,000 Australian motorists.

In more recent years, as Head of CFA, Jason has collaborated with law firms across Australia and New Zealand to fund numerous commercial, insolvency, and class action claims. This includes a +NZD$300 million class action on behalf of approximately 3,000 people affected by the Southern Response insurance scandal following the Christchurch earthquakes in 2011. Under his leadership, CFA has achieved a 94% success rate in its funded cases. Jason is also the co-author of the Australian and New Zealand chapters of ‘The Third Party Funding Law Review’, an annual guide to the law and practice of third party funding, which is currently in its 8th edition.

Company Name and Description: Claims Funding Australia (CFA) is a litigation funding specialist with operations and offices throughout Australia. CFA funds a broad range of litigation in Australia and overseas. Backed by Maurice Blackburn, Australia’s leading class action law firm, CFA is part of the Claims Funding Group, providing third-party litigation funding services across Europe, Asia, North America, Australia, and New Zealand. Founded over a decade ago, CFA has been successful in 94% of its funded cases, recovering almost half a billion dollars for its clients. CFA leverages the expertise, resources, and reputation of Maurice Blackburn Lawyers, whose advisory team includes some of the most experienced class action, insolvency, and commercial litigators in Australia. With the solid financial backing of Maurice Blackburn, CFA brings extensive knowledge and experience in litigation and dispute resolution, offering dependable litigation finance. CFA works with a diverse range of clients, including liquidators, trustees, individuals, businesses, and government agencies, sharing Maurice Blackburn’s commitment to providing greater access to justice and leveling the litigation playing field against well-resourced defendants.

Company Website: www.claimsfunding.com.au

Year Founded: 2014

Headquarters: Melbourne, Australia, (with offices in Sydney, Adelaide, Brisbane and Perth)

Area of Focus: Civil, commercial, and insolvency litigation funding across Australia, and class action and commercial litigation funding in New Zealand and Canada.

Member Quote: “Define your goal, assess the cost, commit to the journey, and relish the rewards with peace of mind and no regrets.

LitFin Highlights Momentum for Booking.com Class Actions

By Harry Moran |

Class actions focusing on anti-competitive behaviour by big businesses continue to provide ample opportunities for litigation funders to support claimants in their pursuit of justice, with European jurisdictions benefitting from a strong regulatory and oversight structure that seeks to clamp down on corporations abusing their dominant market positions.

In a LinkedIn post from LitFIn, the Prague-based litigation funder provides an update on the ongoing class actions brought against online travel agency Booking.com over its alleged anti-competitive practices. The allegations relate to the company’s use of pricing parity clauses, which have harmed hotels by preventing them from offering lower prices on their own websites or other online travel platforms. 

The travel company is now facing lawsuits across a number of jurisdictions in the European Union, with ongoing investigations in Italy, Sweden and France, following in the footsteps of regulators in Spain and Czech Republic who have already issued fines. One class action, brought by German hotels seeking compensation, has already begun proceedings in the Rechtbank Amsterdam.

Juraj Siska, partner at LitFin, provided the following statement: “The recent decision by Spain’s Competition Authority to fine Booking.com €413.2 million is a significant step forward in the fight against anti-competitive practices. Booking.com’s actions have affected market players across the EU, not only in Spain. Now is the time to end these practices and ensure compensation for damages already incurred.”

Concluding the post, LitFin emphasised their active involvement to support claimants seeking compensation in the Booking.com class actions, and encouraged any potentially affected parties to contact them.

Maturation of the Litigation Funding Industry Brings New Opportunities and Challenges

By Harry Moran |

As we enter the final months of 2024, it is only natural for industry commentators and analysts to lay out their observations on the state of litigation finance, seeking to understand how third-party funding has evolved this year.

A column in Bloomberg Law, written by former lawyer turned writer David Lat, examines the current state of the litigation funding industry and examines the changing face of the market, from its growing successes to the evolution of issues it faces. The column draws upon Lat’s time at the LitFinCon event hosted in September of this year, featuring insights from industry leaders who spoke at the conference.

One of Lat’s primary observations is the transformation of litigation funding from a fringe activity in the legal sector, to a mainstream stable that has transformed the way claimants and law firms pursue disputes. Lat highlights this change in attitudes within law firms, quoting Casey Grabenstein of Saul Ewing, who noted that his firm was somewhat reluctant to embrace litigation funding”, whilst Mayer Brown’s Michael Lackey emphasized that third-party funding “was just anathema”, a decade ago. Nowadays, these attitudes have largely been reversed, with Lackey himself noting that in today’s legal landscape “virtually every large law firm that does litigation probably has a funded case somewhere.”

Speaking to one of the prominent topics discussed at LitFinCon, Lat explains that with the startling growth experienced by the litigation finance market, the issue of the ‘commoditization’ of funding continues to be raised. Across the speakers at the event, Lat highlights that the general view of funders and other parties is that the industry has moved towards maturation rather than commoditization, with a lack of standardization across funding arrangements being absent across the industry. Looking to the future of third-party funding, Lat says that industry leaders continue to take a cautiously optimistic view, and quotes Mani Walia of Siltstone Capital who said, “ours is a young industry, and we need to make sure that there are no bad apples.”

In the spirit of this cautious attitude towards ‘bad apples’ and the potential for issues to arise, Lat also addresses the ways in which opposition to and criticism of the funding industry has changed with its maturation. Lat describes this transformation as being a move away from issues of legality to issues of disclosure, highlighting the ongoing debates among lawmakers and the judiciary as to what level of mandatory disclosure should be required for funding arrangements.

Department of Justice Files Statement of Interest on $16 Billion YPF Award

By Harry Moran |

The ongoing saga of the $16.1 billion award in the case brought by investors of the YPF oil and gas company, and funded by Burford Capital, has remained one of the most high profile instances of litigation funding in history. Whilst the Argentine government continues to appeal the award, the U.S. government has now formally offered its own opinion on one of the legal issues at stake in the dispute.

An article by Reuters covers the latest development in the Argentina YPF case, as the U.S. Department of Justice submitted a statement of interest arguing against the seizure of Argentina’s shares in the oil and gas company, as part of the enforcement of the $16 billion judgment. The letter, sent to U.S. District Judge Loretta Preska in Manhattan, appeared to disagree with Burford Capital’s position that there was a commercial activity exception to the Foreign Sovereign immunities Act, and that the law was not intended to disregard immunity for foreign sovereign property. This argument seemed to reflect the DOJ’s position that carving out such an exception to immunity would create a parallel risk for U.S. property in foreign jurisdictions.

In response to media reporting on this latest development, Burford Capital issued a statement that argued the DOJ’s letter only addressed “a narrow question of law in relation to the enforcement of judgements.” Furthermore, Burford argued that the filing “does not reflect DOJ’s taking any broader position on the overall case of the enforcement campaign.” The press release from Burford Capital can be read in full below:

“Burford Capital Limited, the leading global finance and asset management firm focused on law, has noted inaccurate media reporting and subsequent market reaction to an expected court filing last night by the U.S. Department of Justice ("DOJ") in the Petersen and Eton Park matters. The filing in the U.S. District Court for the Southern District of New York restates DOJ's position on a narrow question of law in relation to enforcement of judgments. The filing pertains to one motion filed in the Petersen and Eton Park matters as part of the overall, ongoing effort to enforce the judgment against the Argentine Republic. The filing does not reflect DOJ's taking any broader position on the overall case or the enforcement campaign; indeed, DOJ has previously taken the position that pursuing Argentina in the US courts for its breach of contract in this matter was appropriate, and DOJ has not made any filing at all on the pending appeal (and the time to do so has passed). In its filing, DOJ took the view that Argentina could not be required by a U.S. court to move property presently located in Argentina into the United States so it could there be attached for creditors under New York law, which is an unsettled legal issue. The DOJ view is not binding on the court and further briefing and proceedings will ensue. The Company will provide a further update on the Petersen and Eton Park matters during today's earnings call.”

Fenchurch Legal Partners with Altify to Launch New Legal Finance Token

By Harry Moran |

Fenchurch Legal, a specialist in litigation funding for small and medium-sized UK law firms, has partnered with Altify, a regulated South African alternative investment platform connecting retail and institutional investors with tokenised private market assets. This collaboration will offer investors access to Fenchurch Legal’s litigation funding investments via Altify’s digital platform.

Through this partnership, Altify has launched the world’s first legal finance security token on the Bitcoin Liquid network, with the ticker ALFI. Each token is 1:1 dollar-backed by Fenchurch Legal’s litigation finance loan notes. This Real-World Asset (RWA) tokenisation approach democratises access to the niche market of litigation finance—an investment category traditionally reserved for high-net-worth individuals and specialist finance institutions.

With ALFI, Altify’s 75,000 South African clients can now invest, with as little as $100, in a diversified portfolio of senior secured loans extended to vetted UK law firms. ALFI is a USD-denominated security token offering a fixed annual yield of 11% with quarterly interest payments.

The UK litigation finance market is experiencing robust growth, with increased investor demand. Fenchurch Legal’s Loan Note offering has seen investor uptake increase by 90% from Q2 to Q3 this year. This growth is driven by law firms seeking funding for increased case volumes and investors’ interest in stable, alternative assets.

This partnership marks a strategic milestone for Fenchurch Legal, aligning with its vision to expand and connect with a wider pool of investors. By joining Altify’s platform, Fenchurch diversifies its funding sources and strengthens its ability to support law firms in the rapidly growing litigation finance sector.

Louisa Klouda, CEO of Fenchurch Legal, said: “This partnership with Altify marks a key growth milestone for Fenchurch Legal, and we are delighted to be the first company to join their new private debt offering.

Being on the Altify platform allows us to diversify our funding sources and increase our lending power, allowing us to further support law firms and meet the growing demand for litigation finance in the small consumer claims market. Altify investors will benefit from Fenchurch Legal’s investment structure, where loans are secured against case proceeds, proceeds of insurance policies, law firm assets and PGs of shareholders, enhancing investor capital protection. We look forward to collaborating with Altify, a company that shares our commitment to technology and innovative financial solutions.”

Sean Sanders, CFA Charterholder and CEO of Altify, adds: “Fenchurch Legal’s exceptional track record in funding UK law firms and delivering steady returns within a niche alternative asset class makes them an ideal partner for Altify. Legal finance is a compelling investment category for portfolio diversification, as it is largely uncorrelated with traditional economic cycles. However, minimum investments in this category have historically been in the six figures making it a largely unattainable asset class for most investors.

The ALFI token addresses the accessibility challenge, by providing South African clients with the opportunity to own a single token and start investing with the equivalent of $100. This partnership also shifts the landscape of legal finance, as traditionally only the lawyers profit from legal disputes, but with ALFI, both lawyers and investors can earn an attractive return. This is a new era for portfolio diversification, and we are thrilled to be at the forefront.”

Claimants in AT1 Bonds Class Action Accept Omni Bridgeway Funding Arrangement

By Harry Moran |

Reporting by Law.com International reveals that claimants in a class action brought against the Swiss Financial Market Supervisory Authority (FINMA) have formally accepted a funding agreement with Omni Bridgeway to support the legal action.

The class action is seeking to represent 400 investors who are challenging FINMA over the writing down of $17 billion worth of AT1 bonds issued by Credit Suisse, following the 2023 emergency takeover of Credit Suisse by UBS. The claimants, who are mostly based in Singapore, are being represented by Drew & Napier.

Mahesh Rai, lead partner at Drew & Napier, spoke with Law.com and stated that the value of the class action is set to exceed $250 million, saying that “this claim value will rise as additional investors continue to sign up.” Rai went on to confirm that as part of the funding agreement, Omni Bridgeway “is entitled to a share of any damages recovered by the investors in their claims against Switzerland.”

Whilst the total amount of funding provided by Omni Bridgeway has not been confirmed, the funder’s Singapore investment manager Arvindran Manoosegaran explained to Law.com that it would depend on the number of claimants who register for the lawsuit and the economic viability of the case from Omni Bridgeway’s perspective.

Australian Family Law Funder Announces $92M Capital Raise

By Harry Moran |

Whilst family law is not always an area of the legal system that is top of mind for litigation funders, the appetite for outside funding to support these disputes continues to be reinforced by specialised firms who are raising capital to grow their services.

In an announcement posted on FinTech Australia, JustFund announced a $92 million capital raise that will allow the family law funder to accelerate the growth of its services and expand operations. The capital raise includes $5.7 million in seed round financing led by Xilium Capital, a $75 million senior debt facility from Global Credit Investments (GCI), and another $11 million in mezzanine funding from family offices. The announcement also explained that the capital raise included investments from Startmate, The Legal Tech Fund (USA) and Tripple, among other startup investors.

JustFund was founded in 2022 by the trio of Andy O’Connor, Jack O’Donnell and Craig Carroll. O’Connor and O’Donnell both formerly practiced as lawyers, whilst Carroll brought his experience as a fintech entrepreneur and investor. According to the announcement, in the two years since its founding, the Sydney-based funder ‘has approved more than $95 million in legal funding to support its clients to access more than $1 billion in relationship property settlements.’

Commenting on the capital raise, Carroll explained that the additional funding “will enable JustFund to help thousands more Australians to achieve a fair and equitable distribution of relationship assets and to rebuild their lives following a divorce or separation.” Gavin Solsky, Co-founder of GCI Funds, stated that his firm is “pleased to be aligning with JustFund and supporting their mission to help Australians access legal representation during a challenging time in their lives.”

Emmerson Exploring Funding Options for Investment Dispute with Morocco

By Harry Moran |

Investment treaty disputes between mining companies and nation states have continued to provide legal funders with opportunities to support valuable arbitration claims across the globe. This has once again been demonstrated by an announcement from one such company intending to pursue a dispute with Morocco, enlisting the services of a law firm with a track record of working with funders to support these claims.

An announcement from Emmerson plc reveals that the potash development company has notified the Moroccan government of its intent to pursue an investment dispute over the government’s alleged breaches of a bilateral investment treaty (BIT) between Morocco and the United Kingdom. The mining exploration and development company stated that it “has engaged Boies Schiller Flexner LLP as its litigation counsel and is examining various funding avenues for an investment dispute.” Emmerson’s announcement does not provide any significant details about the nature of the investment dispute but does refer to the development of the Khemisset Potash Project in Northern Morocco, which is likely where the dispute’s origins lie with this project. 

Emmerson stated that it had provided this notification to the Moroccan government so that the two parties could “engage in discussions regarding cash compensation for the damages incurred because of Morocco's breaches of the BIT, with a view to achieving an amicable resolution of the dispute.” However, Emmerson asserted that if these discussions cannot find a resolution, then the company “intends to submit a claim for arbitration under the BIT, seeking damages for the harm described above, plus interest, costs, and any such further relief as the Tribunal may deem appropriate in the circumstances.”

The announcement also references Boies Schiller Flexner’s involvement in two other investment treaty disputes: the GreenX Metals arbitration with Poland and the dispute between an Indiana Resources subsidiary and Tanzania. As LFJ has previously reported, both the GreenX Metals and Indiana Resources arbitration claims were funded by Litigation Capital Management (LCM).

Hannah Sadler Joins GLS Capital Patent Investment Team

By Harry Moran |

Hannah Sadler has joined the firm as a vice president and member of the patent investment team.

“We are very happy to welcome Hannah to GLS Capital as a vice president and member of our team focusing on patent investments,” said Adam Gill, a GLS Capital managing director, co-founder, and leader of the firm’s patent-related investing. “Attracting top-tier talent is essential for continuing to help our clients achieve success, and Hannah’s background in patent litigation will be invaluable for navigating the complexities of patent investments and helping to drive our mission forward.”

Sadler focuses on diligence around qualified underwriting opportunities and monitoring and managing the firm’s patent litigation investments.

Before joining GLS Capital, Sadler was a patent litigator at Global IP Law Group in Chicago. She has over a decade of experience with all aspects of patent portfolio management and enforcement, including prosecution, litigation, sales, licensing, and portfolio valuation.

Sadler earned her J.D. (cum laude) from DePaul University College of Law and her Bachelor of Arts from the University of San Diego.

Community Spotlights

Community Spotlight:  Luke Darkow, Portfolio Manager, Aperture Investors

By John Freund |

Luke Darkow is a Portfolio Manager at Aperture Investors, bringing over 13 years of experience in investing with a specialization in litigation finance private credit investments. Throughout his career, he has been instrumental in sourcing, analyzing, structuring, and managing investments, deploying more than $1 billion into the litigation finance asset class. Luke leverages a well-established network of plaintiff law firms and legal service providers to access and originate opportunities within this specialized field.

Before Aperture, Luke was a Principal and Portfolio Manager at Victory Park Capital, where he led a litigation finance asset-based lending strategy. His background also includes roles at TPG Capital and Morgan Stanley, further enriching his expertise in finance and investment management. Luke holds a B.S. in Business Administration with a focus on Finance – Applied Investment Management from Marquette University.

Company Name and Description:  Aperture Investors is an alternative asset manager founded by Peter Kraus, focusing on specialized credit and equity strategies across global markets. The firm aims to generate compelling returns in capacity-limited strategies, emphasizing a client-centric approach. Aperture operates as part of the Generali Investments ecosystem, combining boutique agility with large-scale resources. Aperture supports private credit litigation finance, structured credit, and diverse equity strategies, managing over $3 billion in assets.

Company Website: https://apertureinvestors.com/

Year Founded: Founded in 2018 by Peter Kraus in partnership with Generali Group, one of the largest global insurance and asset management companies

Headquarters:  Headquartered in New York with offices in London and Paris

Area of Focus:  Aperture Investors approaches litigation finance through a private credit perspective, prioritizing capital protection and steady income by utilizing structured term notes. These notes are backed by diversified, settled, or short-duration legal claims, offering lower volatility than traditional litigation funding, which depends on individual case outcomes and carries higher uncertainty and risk.

We primarily focus on lending against legal claims that are either post-settlement or procedurally mature, near-settlement, and/or short-duration. This approach emphasizes secured lending on more predictable claims to reduce volatility and enhance income stability

Member Quote: "The litigation finance asset class generally exhibits minimal correlation with broader capital markets, is highly inefficient, and continues to grow as demand for legal funding exceeds available capital, creating a compelling opportunity for private credit lenders like Aperture Investors."