News and analysis dedicated to the commercial litigation funding sector including regulatory issues, case developments, funding activities, and more.

Bryant Park Capital (“BPC”), announced today that Deminor Recovery Services (“Deminor”), a leading privately-owned global litigation funder, recently closed on an approximately $100,000,000 committed senior credit facility and asset-backed financing with two leading U.S. based asset managers focused on the legal assets industry.

BPC, a leading US-based middle market investment bank, served as the exclusive financial advisor to Deminor in connection with this transaction.

“Bryant Park Capital’s extensive knowledge of the financing markets, combined with their strong relationships and creative structuring capability have been invaluable and helped us complete this complex set of transactions that we believe will be transformative for our clients, employees and shareholders, reflecting how our business model and international footprint has expanded since our first external capital raise in 2021. Significantly, these investments, made on Deminor’s own balance sheet, will continue to enable Deminor to deliver fast decision-making and flexible funding terms, with final investment decisions resting with our Investment Committee. Bryant Park Capital has been an excellent partner for us and we greatly appreciate BPC’s guidance and support throughout the process,” said Erik Bomans – CEO, Deminor.

Commenting on Deminor’s platform and performance, Joel Magerman, Bryant Park Capital’s Managing Partner added, “Deminor has generated significant returns extending through multiple market cycles as a leading player in the litigation funding sector, and this capital raise will provide an opportunity to significantly expand the operating leverage of the Deminor platform internationally.”

About Deminor

Founded in 1990, Deminor is a leading privately-owned global litigation funder with 9 offices across continental Europe, London, New York, and Hong Kong.

Deminor has funded cases across four continents and 22 jurisdictions spanning 18 case categories as a leader in investment recovery, anti-trust, collective consumer, and commercial tort across 25 industries.

For more information about Deminor, please visit www.deminor.com.

Burford Capital, the leading global finance and asset management firm focused on law, today announces that Travis Lenkner has rejoined the company as a member of its Management Committee in the newly created role of Chief Development Officer.

Based in London, Mr. Lenkner is focused on Burford’s future and its ongoing transformation of the legal industry. His responsibilities involve identifying and executing strategic initiatives that drive growth and align with the company’s long-term objectives, and his areas of focus include law firm equity investments, the alternative delivery of legal services to corporate and individual clients, and legal tech, including AI.

Mr. Lenkner is a longtime global leader in the legal finance market, including as a launch partner of Gerchen Keller Capital, which Burford acquired in 2016. More recently, he co-founded and was Managing Partner of Keller Lenkner LLC; he also co-founded and was a Director of the firm’s European counterpart. In addition, he was Senior Counsel at The Boeing Company and a litigation and appellate attorney at Gibson, Dunn & Crutcher LLP. Mr. Lenkner was also a clerk for Justice Anthony M. Kennedy at the Supreme Court of the United States.

Christopher Bogart, CEO of Burford Capital, says: “We are pleased to welcome Travis Lenkner back as a member of the Management Committee in the newly created role of Chief Development Officer, where he will be focused on the continued growth of Burford’s business. Travis has had a tremendous impact as a leader in law and legal finance, which includes the impact he made while previously at Burford. The legal field is generally slow to change but Burford remains committed to being at the forefront of its modernization, including changes related to equity investments in law firms and new technology such as AI. As a seasoned executive who has spent much of his career in legal finance, Travis shares Burford’s commitment to advancing the business of law, and we at Burford welcome his leadership and unique perspective as our business continues to grow.”

About Burford Capital

Burford Capital is the leading global finance and asset management firm focused on law. Its businesses include litigation finance and risk management, asset recovery and a wide range of legal finance and advisory activities. Burford is publicly traded on the New York Stock Exchange (NYSE: BUR) and the London Stock Exchange (LSE: BUR), and it works with companies and law firms around the world from its offices in New York, London, Chicago, Washington, DC, Singapore, Dubai and Hong Kong.

For more information, please visit www.burfordcapital.com.

Nera Capital, a pioneering specialist funding provider to law firms, is pleased to announce a new strategic partnership with Fintex Capital, the innovative investment firm dedicated to private debt. As part of this partnership, Nera secured an initial £20 million investment from Fintex.

The demand for law firm financing is growing quickly, as more and more consumers look for redress from hidden commissions on car financing to housing disrepair. The new funding line will allow more consumers to have access to the justice they deserve as the financial barriers are diminished.

The partnership marks a significant milestone for both companies. It expands Nera Capital’s reach, diversifies its funding sources and enables it to bring the benefits of capital and expertise to a wider set of consumers. For Fintex, this is another landmark transaction, the 3^rd UK funding line of c. £20 million. This investment was fully funded by Fintex Capital’s flagship fund, Fintex Private Debt.

Aisling Byrne, Director of Nera Capital, said: “Fintex Capital’s investment enables the firm to accelerate its growth trajectory, further scaling its operations to provide crucial financial support to clients when they need it most. Along with being better positioned to ensure justice remains accessible, even against the most formidable adversaries, the additional funding line increases Nera Capital’s diversification.

The Fintex investment strengthens Nera’s financial base, diversifies our funding sources and allows us to explore new avenues in our market. It also enables us to scale our robust platform. We are pleased that our operations were once again endorsed by a prominent institutional investor.

Fintex made an excellent name for itself as a sophisticated, reliable lender in the UK and beyond. The Fintex team led by Sophie Batoua were a pleasure to deal with and the transaction was successfully executed in record time.”

Robert Stafler, CEO of Fintex Capital, said: “It comes as no surprise that demand for law firm finance is on the rise. This granular, insurance-backed financing provides vital funding to consumers when they need it most. It enables them and their lawyers to bring justice to families who without Nera’s support would be unable to seek redress.

Nera has a strong track record in its market, having successfully provided c. £200m in funding for UK consumer claims to date. We are delighted to see that our investment helps Nera solidify its position as a leader in its field. To us, this is just the beginning of a successful long-term partnership.”

Advisors: Nera Capital was advised by Walker Morris LLP, Mason Hayes & Curran LLP, and Copsey Murray Chartered Accountants. Fintex Capital was advised by Fox Williams LLP and Mason Hayes & Curran LLP

-ENDS-About Nera Capital: Established in 2011, Nera Capital is a specialist litigation funding provider with a presence in Manchester, Dublin, and The Netherlands. The firm is dedicated to supporting law firms and providing the financial resources necessary to pursue justice in both their Consumer and Commercial divisions.

Fintex Capital: (www.fintexcap.com) is a pioneering investment firm specialising in private debt. Since its inception, the firm has provided close to £400 million in private debt capital to borrowers across Specialty Finance and Real Estate Debt. Fintex is known for providing senior and mezzanine debt facilities to lending businesses in the UK and beyond; it also provides direct lending to asset-backed businesses and asset owners. The firm manages discretionary investment funds, as well as segregated managed accounts for various institutions.

Today marks the 15^th anniversary of the founding of Burford Capital, the leading global finance and asset management firm focused on law. In just 15 years, Burford has gone from a single $130 million investment fund to a $7.4 billion industry leader – with a 27x increase in its market capitalization.

Burford is fortunate to have a deep and continually growing bench of talented professionals from the world’s leading law firms and companies; we report below on the latest additions to the Burford team.

In recognition of that strong bench and a continued focus on our clients, Burford is today appointing Aviva Will, currently Co-Chief Operating Officer, as President. In her new role, Ms. Will’s focus will be predominantly on high-value, client-facing activities as we continue to expand our global relationships and the business evolves yet more towards complex financings with sophisticated corporate counterparties.

Burford is similarly appointing David Perla, also currently Co-Chief Operating Officer, into a new market-facing role of Vice Chair, focusing globally on Marketing, Public Policy, Industry Affairs and Public Relations, drawing on Mr. Perla’s experience and relationships in past leadership roles, including as President of Bloomberg Law.

Christopher Bogart, CEO of Burford Capital, says: “It should come as no surprise that Burford Capital continues to not only grow talent from within, but also to attract experienced senior professionals. In our 15^th year, my co-founder Jon Molot and I are incredibly proud of Burford’s successes and its extraordinary people. Jon and I are just as committed today as we were on day one to redefining and advancing the business of law.”

Burford has also recently added a number of senior professionals from top global corporations and law firms, including:

Andrew Farthing as a Director in Texas, responsible for managing matters in Burford’s US portfolio. Prior to joining Burford, Mr. Farthing was a Director at Apple and previously a senior litigator at Latham & Watkins.

Carrie Tendler as Special Counsel in New York, responsible for advising on the enforcement of judgments in cases backed by Burford with a particular focus on the YPF matter. Prior to joining Burford, Ms. Tendler was a Partner at Kobre & Kim and a litigator at Cravath, Swaine & Moore.

Josh Reed as Senior Vice President in Chicago, responsible for managing matters in Burford’s patent portfolio. Prior to joining Burford, Mr. Reed was Head of Global Litigation at the Sisvel Group and Chief IP Counsel at Allscripts.

Kate Tellez as Senior Vice President in Chicago, responsible for assessing and underwriting legal risk as part of Burford’s patent group. Prior to joining Burford, Ms. Tellez was a Partner at Steptoe.

Florencia Villaggi as Vice President in New York, responsible for assessing and underwriting legal risk in investor-state and international commercial arbitration. Prior to joining Burford, Ms. Villaggi was Counsel at Herbert Smith Freehills.

Josh Wood as Head of Investor Relations in New York, with responsibility for directing Burford’s investor relations activities. Prior to joining Burford, Mr. Wood was Head of Shareholder Relations at Patria Investments and previously Vice President at Carlyle.

Nicholas Sinigaglia has joined as Global Controller in New York as a key member of the finance management team. Prior to joining Burford, Mr. Sinigaglia was Chief Accounting Officer at Pie Insurance.

About Burford Capital

Burford Capital is the leading global finance and asset management firm focused on law. Its businesses include litigation finance and risk management, asset recovery and a wide range of legal finance and advisory activities. Burford is publicly traded on the New York Stock Exchange (NYSE: BUR) and the London Stock Exchange (LSE: BUR), and it works with companies and law firms around the world from its offices in New York, London, Chicago, Washington, DC, Singapore, Dubai and Hong Kong.

For more information, please visit www.burfordcapital.com.

Law In Order, the leading provider of comprehensive document and digital solutions for the legal industry and government, is proud to announce the launch of its latest eBundle solution, utilising Lexel’s latest innovation GenAI technology. This revolutionary integration marks a significant advancement in legal technology, offering enhanced efficiency, intelligence, and collaboration for legal professionals across Australia, Asia, and the Middle East.

The new eBundle solution harnesses the power of Lexel’s GenAI capabilities to streamline evidence management and digital bundle preparation for eHearings. GenAI brings advanced generative AI functionality that provides deep contextual intelligence on case materials, enabling lawyers and legal teams to process and analyse evidence faster, with greater accuracy and insight.

For nearly a decade, Law In Order has worked closely with LegalCraft, the creators of Lexel, to bring unparalleled technology solutions to legal professionals. This new initiative further solidifies the partnership, as both companies strive to push the boundaries of what legal tech can achieve.

Rey Penalosa, Law In Order’s Head of eHearings: “The integration of Lexel’s GenAI into our eBundle solution is a game changer. We’re excited to offer our clients an ‘All in One, integrated’ tool that not only simplifies the preparation process but also enhances their ability to present cases with precision. This collaboration strengthens our commitment to delivering the most innovative legal technology solutions to the market.” 

Vamsi Madiraju, Chief Operating Officer at LegalCraft, added, “Australia has always embraced Lexel technology, and it’s the perfect market for us to launch GenAI. Law In Order has been an integral partner for us in this journey, and we are thrilled to collaborate with them on this exciting new offering. The integration of GenAI into Law In Order’s eBundle solution will empower legal teams with unprecedented capabilities.”

About Law In Order 

Law In Order is a leading provider of end-to-end document and digital solutions, specialising in document production, eDiscovery management, and specialist court services. With a strong focus on innovation, the company is dedicated to empowering legal professionals with the tools and expertise they need to excel.

About LegalCraft 

LegalCraft is the creator of Lexel, a leading evidence management platform used by legal professionals globally. Lexel’s GenAI capabilities enhance legal workflows by providing AI-driven contextual intelligence on case materials, improving efficiency and accuracy in evidence management.

Aperture Investors, an alternative asset manager and part of the Generali Investments platform, today announced that Luke Darkow has joined the firm to lead its new private credit Litigation Finance strategy. 

Darkow joins Aperture from Victory Park Capital, a global alternative investment manager, where he was a Principal and Portfolio Manager responsible for sourcing, analyzing, executing, and managing investments within the litigation finance asset class. Prior to Victory Park Capital, Darkow held roles at TPG Capital and Morgan Stanley. 

“With Aperture entering its next phase of growth, we see significant potential in specialty lending, particularly in litigation finance, which we believe remains a relatively underbanked asset class. Estimates suggest that the litigation finance market could double annually through 2035,” said Peter Kraus, Chief Executive Officer and Founder, Aperture Investors. “Litigation Finance is a niche, relationship-driven sector—and Luke is no tourist. His expertise in both private and public debt investments, his deep network of law firms and legal service providers, and his ability to source opportunities and raise capital will allow us to build out this unique offering at Aperture.”

Litigation Finance involves the provision of third-party capital to help finance law firms or plaintiffs pursuing legal claims in exchange for, or collateralized by, a percentage of proceeds received upon the successful resolution of legal disputes. Aperture’s Litigation Finance strategy will primarily provide structured loans to law firms backed by expected legal fee receivables from procedurally mature, settled, and/or short duration legal cases, targeting uncorrelated returns.

“I’m incredibly pleased to join Aperture and help drive the firm into new opportunities in private credit with this niche, asset-based lending strategy,” commented Darkow. “As Aperture expands its slate of strategies and products, I’m also attracted to the intellectual horsepower and best-in-class infrastructure within the broader firm.” 

About Aperture Investors 

Aperture is an alternative asset management firm offering credit and equity strategies in commingled and bespoke portfolios for institutional investors. Aperture’s mission is outperformance, and it is focused on identifying portfolio managers who it believes have a unique edge and can consistently deliver innovative, solutions-oriented investment results throughout market cycles. Since inception, Aperture has steadily grown its breadth of products, and as of August 31st, it manages approximately $4 billion. Its investment strategies are diversified across asset classes and geographies – each managed by a dedicated investment team – with distribution across North America, Europe, Middle East and Asia. 

Aperture Investors was founded in 2018 and is led by industry veteran Peter Kraus and by Generali, one of the largest global insurance and asset management providers. For more about Aperture, visit us at www.apertureinvestors.com.

Danny Kinnear, founder of EAKO Capital, leverages his experience with top financial institutions like Deutsche Bank, Nomura, and Litigation Capital Management to offer innovative financial solutions to corporates, law firms, and funders.  EAKO partners with Google Ventures and Visa-backed entities, as well as major banks, to provide:

• Rapid bank account setup (48-72 hours)
• Diverse funding options (on both a recourse and non-recourse basis)
• Competitive foreign exchange services (a demonstration of how much we can save you, look here)
• Forward credit lines for risk management hedging purposes
• FX options and structured solutions
• Risk management consultancy to resolve complex situations – through our extensive network we can find solutions to most currency problems

Company Name and Description:   EAKO Capital helps law firms, companies, and asset managers access a range of funding and financial risk management solutions.

Company Website:  www.eakocapital.com

Year Founded:  2022

Headquarters:   Supporting clients globally out of London, United Kingdom

Area of Focus:  Comprehensive financial support through multi-currency accounts, currency and interest rate hedging, cross-border & mass payment solutions, and the provision of access to funding, including litigation finance.

Member Quote: “EAKO combines deep banking expertise with technology to deliver intelligent, cost-effective currency and funding solutions to business and asset managers operating internationally.”

Aaron Winston is an author and the Strategy Director at Express Legal Funding, bringing over a decade of experience in the consumer finance industry. In recent years, Aaron has risen to be recognized as an expert in SEO and law firm content marketing, being featured in multiple case studies.

Aaron leverages his deep understanding of digital strategies to enhance Express Legal Funding’s online presence and brand authority with hundreds of thousands of unique website visitors annually. His approach combines analytical precision with creativity, making him a thought leader in the fields of pre-settlement funding and search engine marketing.

Company Name and Description: Express Legal Funding is a nationally recognized and trusted pre-settlement funding company and brand based in Plano, Texas, and is dedicated to providing fair, fast, and affordable financial support to claimants bringing personal injury and other tort claims.

Company Website: https://expresslegalfunding.com/

Year Founded:  2015

Headquarters:  5717 Legacy Drive, Suite 250, Plano, Texas 75024

Area of Focus: Pre-settlement Funding, SEO, Content Marketing, Law Firm Digital Marketing and Websites

Member Quote: Can a pre-settlement funding company really be a household name if most people aren’t even aware the industry exists?

The following is a contributed piece by Tom Webster, Chief Commercial Officer at Sentry Funding.

An EU stakeholder survey is gathering practical information on the operation of third-party funding across the European Union. The study, ‘Mapping Third Party Litigation Funding (TPLF) in the European Union’, was given an extended deadline of 3 September 2024.

Conducted by Civic Consulting and the British Institute of International and Comparative Law (BIICL), the research will help the European Commission analyse the legal framework and practical operation of litigation funding in the EU and make policy decisions in the area.

The survey seeks views from stakeholders with experience of third-party funding, including funders, lawyers, consumer organisations, other businesses, public authorities, members of the judiciary and others. As well as questions seeking to discover the extent of funding activity in each EU jurisdiction and typical levels of investment, it also asks for views on both positive and negative effects of litigation funding.

In relation to positive effects, the survey asks a number of questions including whether respondents have observed that current litigation funding practices lead to better access to the courts for parties who could not litigate without funding; whether there is a deterrent effect on companies that serve consumer markets due to the threat of mass claims relating to unsafe products or unfair practices; and whether respondents have seen a filtering effect on claims as those with a low chance of success will not be funded.

In relation to negative effects, questions include whether respondents have observed conflicts of interest; undue influence on decisions such as settlements and appeals; and the funding of frivolous claims.

The EU survey is just one of a number of projects currently examining the litigation funding sector. Also focusing on the EU market, the European Law Institute is undertaking a substantial research project with the aim of establishing a set of principles to identify the issues that should be taken into account when entering into litigation funding agreements.

Meanwhile in the UK, the Legal Services Board recently published a report on litigation funding in England and Wales (https://legalservicesboard.org.uk/wp-content/uploads/2024/05/A-review-of-litigation-funding.pdf), and the Civil Justice Council has embarked on a wide-reaching review of the sector (https://www.judiciary.uk/related-offices-and-bodies/advisory-bodies/cjc/current-work/third-party-funding/) which will include recommendations in relation to the future regulation of the industry.

Michelle Silvers is Chief Executive Officer and a Director of Court House Capital and leads the company’s business strategy, growth and operations across geographic markets. She oversees stakeholder relations with capital investors and all decisions pertaining to the company’s investment portfolio.

Michelle is a highly-respected leader in litigation funding. She co-founded the litigation funding industry in Australia in 1999 and has over 30 years’ combined funding and legal experience across commercial dispute resolution, insolvency, insurance and collective redress (class actions).

Michelle has played a crucial role in funding more than 200 legal disputes and is passionate about structuring capital and risk management solutions for clients and helping claimants gain access to justice.

In 2019 Michelle joined Court House Capital, quickly establishing the business as a funder of choice in Australia and New Zealand. Previously, she served as Managing Director and CEO of Litigation Lending Services Limited, where she pioneered portfolio funding and grew the business to become one of the most successful funders in the region. Her career also includes senior roles at leading international funders (Augusta Ventures and IMF Bentham, now Omni Bridgeway), global insurance firms (AMP, FAI General, Lawcover) and private legal practice (DLA Piper).

Michelle is a co-founder and Director of the Association of Litigation Funders of Australia (AALF) and is a regular speaker and commentator on industry developments. She holds a Bachelor of Arts and Bachelor of Laws from the University of New South Wales and is a Director of Court House Capital Management Limited.

Company Name and Description: Court House Capital is a leading litigation funder focused on cases in Australia and New Zealand. Court House Capital was established with a mission to provide financial and strategic support to parties seeking capital, risk management and access to justice. Our team is led by industry founders, with Australian based capital, and is renowned for expertise, agility and collaboration.

Company Website: courthousecapital.com.au

Year Founded:  2019

Headquarters: Sydney

Area of Focus: Litigation Finance

Member Quote: We offer cost and risk mitigation strategies for commercial clients and ‘a level playing field’ for those who cannot afford to pursue justice themselves. It is an honour to be co-founders of an industry that provides access to justice for so many, and to be the funder of choice for claimants and professional advisers. Our financial resources, industry network and knowledge has helped many claimants achieve successful outcomes.

Manolete (AIM:MANO), the leading UK-listed insolvency litigation financing company, today announces its audited results for the year ended 31 March 2024. 

Steven Cooklin, Chief Executive Officer, commented: 

“These annual results show that Manolete has now recovered strongly from the UK Government’s suppression of the UK insolvency sector that prevailed during the Covid period. The Company has returned to profitability and has continued its track record of consistent operational cash generation. That has been driven by a record number of 251 case completions in FY24.

The trading results for the new financial year, which commenced on 1 April 2024, clearly show that this positive momentum has continued: year to date, new case enquiries are running 22% ahead of FY24 and our in-house legal team has already completed 116 cases with an aggregate value of £11.8m (compared to this stage last year, where we had completed 93 cases for a total value of £6.3m). This is also reflected in our gross cash receipts where we have already collected £10.3m in the first five months of this financial year, compared to £8.7m for the whole six-month, first half period of the previous financial year.

“Widely reported, challenging, multiple, macro-economic factors including: high interest rates, persistent inflationary threats, stretched Government balance sheets and global conflicts, provide strong tailwinds and significant momentum for further growth. As the clear market leader in the UK insolvency litigation finance sector, the Company is exceptionally well positioned to take advantage of these conditions”. 

Financial (statutory and non-statutory) highlights: 

• Realised revenues on completed cases were £24.2m, a decrease of 10% (FY23: £26.8m) although FY23 included an exceptionally large, funded case completion of which £4.9m was recorded in realised revenue (total settlement £9.5m).
• Adjusting for that single exceptional case, FY24 realised revenues were 11% higher than FY23. 
• 92% of total revenues represented by realised revenues on fully completed cases (FY23: 129%). 
• Increase in the valuation of the cartel cases contributed £0.1m to gross profit in FY24 (FY23: £1.2m). 
• EBIT increased to £2.5m, which represented a positive change from an EBIT loss of £3.1m in the prior year. 
• Gross cash receipts from completed cases were £17.7m, a decrease of 34% (FY23: £26.7m, however, FY23 included the same one-off exceptionally large case completion, referred to above, which delivered gross cash receipts of £9.5m. Excluding that case, gross cash receipts rose by 3%). 
• The Company’s retained share of gross cash receipts from completed cases (after all legal costs and payments to Insolvent Estates) was £10.8m, a decrease of 18% (FY23: £13.1m) but again, the only reason for the decrease was the £9.5m exceptional case in FY23. 
• Cash generated from operations (after all completed case costs and all overheads but before new case investments and taxation) was £5.0m (FY23: £8.0m). 
• As at 31 March 2024, the Company had cash balances of £1.4m and borrowings of £13.7m resulting in a net debt of £12.3m (FY23: £0.6m and £10.5m, respectively and therefore a net debt of £9.9m). 

Operational highlights: 

• A record number of new case investments in UK insolvency cases, an increase of 18%: 311 in FY24 (FY23: 263). 
• A record number of 251 cases were completed in FY24 (FY23: 193 cases), with an average duration per case of 13.2 months (FY23: 15.5 months), generating a Money Multiple of 1.9x (FY23: 1.9x) and an IRR of 131% (FY23: 131%) (based on unaudited internal management information). 
• As previously reported, following the ending in April 2022 of the Covid-related emergency legislation to suppress UK insolvencies and the withdrawal of very substantial financial support to UK businesses by the previous Government, the number of UK insolvencies have been at record high levels. The first wave of these insolvencies has predominantly been the smaller and weaker “zombie” companies. Only in recent months have the larger company insolvencies, typically by way of Administration, returned to levels seen before the Covid pandemic. This has resulted in record high numbers of cases taken on by Manolete but the average case size is smaller than had been the case, pre-pandemic. By way of comparison: FY21 was the trading year that best reflects the completion values of cases acquired and funded before the Covid-19 impact (this is because, on average, cases take around 12 months to complete). In FY21, audited realised revenues were £24.4m from 135 cases: an average of £180k per case, which is close to double the average for FY24 of £96k. 
• ROI of 116% and Money Multiple of 2.2x from 933 completed cases since inception (based on unaudited internal management information). 
• Average case duration across the full lifetime portfolio of 933 completed cases is 12.7 months · 19% increase in live cases: 418 in process as at 31 March 2024 (351 as at 31 March 2023)

Current Trading 

• The first five months of FY25 have been buoyant:
  • Highest ever number of new case enquiries year to date: 348 (FY24: 286). 
  • 103 new case investments, which is broadly tracking the record 146 new case investments for the whole first six months of FY24. 
  • 116 case completions at an aggregate value of £11.8m (FY24: 93 case completions at a total value of £6.3m). o Gross cash receipts from previously completed cases is £10.3m, compared to £8.7m for the whole first six months of FY24. 
  • Net cash receipts (after all payments to insolvent estates and all associated external legal costs) are £6.5m year to date for FY25, compared to £4.6m for the whole first six months of FY24. 

Outlook 

• Given that the number of corporate insolvencies in the UK remain at record highs, the Company can look forward to a sustained period of growth. A strong recovery in the number of larger case investments signed in the second half of FY24 is also an encouraging indicator of future business strength.

A copy of the annual report and accounts will be available on the Company’s website shortly and will be posted to shareholders in due course.

The full announcement and results can be read here.

Nera Capital’s groundbreaking partnership with a substantial European investment platform, is poised to significantly benefit the company’s consumer division. 

This latest success has come at a prosperous time for Nera Capital, which earlier this year expanded into Europe, opening an office in The Netherlands, adding to its locations in England and Ireland. 

Following its establishment in 2011, the company has become a pioneer in the legal finance industry. Nera Capital is a specialist funding provider to law firms across Europe and the US.  The firm has administered legal finance in numerous jurisdictions and assisted more than 200,000 claimants to date. 

Recently, Nera secured a sought after spot in the European Litigation Funders Association. Director of Nera Capital, Aisling Byrne, said: “This latest funding partner is a strategic advancement which will greatly enhance the services we provide to our clients and partners. 

“I am excited about the possibilities this funding line will unlock.” Ms Byrne called the deal a ‘significant milestone’ for the business.  She added: “Nera Capital continues to advocate for transparency and promoting higher industry standards. We assist financially vulnerable consumers, whilst maintaining exceptional returns for our investors and all stakeholders. 

“This newest collaboration allows us to enhance consumer access to justice, supporting equitable outcomes over time for more people.” 

Nakiki SE announces that it is investigating a capital market claim of up to EUR 400,000 against a company listed on the Open Market of the Düsseldorf Stock Exchange. Nakiki is thus opening up a new area of business: the financing of securities law claims.

With this step, Nakiki SE expands its expertise in the area of litigation financing and continues its growth strategy. The financing of securities litigation enables investors and shareholders to pursue potential claims against listed companies without financial risk. Nakiki SE assumes the full cost of the litigation and receives a share of the proceeds in the event of a successful outcome.

This new business area responds to the growing demand for specialised financing models for legal claims in the capital market. Nakiki SE is supported by an experienced team of lawyers and financial experts to ensure that cases are thoroughly investigated and the plaintiffs’ chances of success are maximised.

With the establishment of securities litigation financing, Nakiki SE is positioning itself as a leading player in a dynamically growing market. We see considerable potential here to facilitate investors’ access to capital market legal protection and at the same time to diversify our portfolio,” says Andreas Wegerich, CEO of Nakiki SE.

Today a leading competition law expert, Professor Barry Rodger, has filed a legal claim worth up to £1.04 billion against Google before the UK Competition Appeal Tribunal (“CAT”). Google is accused of abusing its dominant position to the detriment of a large class of thousands of UK app developers who need to use its app marketplace, ‘Play Store’ or ‘Google Play’, to access their customers. The class action lawsuit seeks compensation for the losses in revenues suffered by those individuals and businesses, many of whom are SMEs, from August 2018 onwards. 

Professor Rodger alleges that Google has used a variety of technical and contractual restrictions to ensure that Google’s Play Store is the only place where UK app developers can market or sell apps designed for Android devices. The result is that UK app developers have little choice other than to use the Google Play Store if they want to reach a wide audience. Google has then used its dominant position in app distribution to require developers to pay excessive and unfair commissions (of up to 30%) on all their sales of digital content to customers. Professor Rodger claims that absent the combination of exclusionary and exploitative conduct, app developers would have paid less to distribute their apps and sell their digital content. 

Professor Rodger’s action follows significant litigation and regulatory scrutiny of Google’s Play Store conduct around the world, including by the European Commission, the UK’s Competition and Markets Authority and the US Congress. 

A class action is needed in the present case because UK app developers would not individually have the means to each bring claims against Google. The UK’s opt-out class action regime in the CAT provides a mechanism by which these app developers can legitimately seek damages for the harm they have suffered as a result of Google’s conduct. 

Professor Rodger’s claim is backed by a legal team composed of competition litigation and digital markets specialists, Geradin Partners and a counsel team of Robert O’Donoghue (Brick Court Chambers), Daniel Carall-Green (Fountain Court Chambers) and Sarah O’Keeffe (Brick Court Chambers). The claim also relies on the expertise of Professor Amelia Fletcher CBE, Professor of Competition Policy at the University of East Anglia, who has been assisted in preparing her economic report by a team of economists at Fideres. The claim is funded by Bench Walk Advisors, a leading litigation funder with a team of multi awardwinning finance professionals and litigators. 

Professor Rodger said: “It is extremely important that the principles of fairness and equality of opportunity underlie our rapidly expanding digital economy by ensuring effective redress for those harmed by any abusive anti-competitive behaviour in the marketplace. I am bringing this claim because I believe that Big Tech businesses like Google should not be allowed to run roughshod over small businesses. I teach my students every day about the importance of enforcement of competition law and I am now ‘practising what I preach’ by seeking redress in the form of compensation for significant business damage suffered by this class of Android app developers.” 

Founding Partner of Geradin Partners, Damien Geradin, said: “Google is one of the most powerful companies in the world. Regulators around the globe have scrutinised its Play Store conduct and consider it harmful. Yet Google continues to use its monopoly position to force out competition and to exploit app developers. It is imperative therefore that developers in the UK also have the opportunity to seek redress for Google’s wrongful conduct.” 

More information on the claim and regular updates for the proposed class can be found at: www.googleplaystoredeveloperclaim.com.  

McDonald Hopkins is proud to welcome John J. Hanley as a Member in the Business Department and the Litigation Finance Practice Group. John brings with him years of experience, a proven track record of success and an innovative spirit that will play a pivotal role at the firm.

“McDonald Hopkins is a great brand in the litigation finance space.” said John. “The goal here is to capture market share. We will continue to be among the best and most active in the litigation finance space, and I’m excited to contribute to it.”

John specializes in litigation finance and complex financial transactions. He has over two decades of extensive experience from highly esteemed East Coast law firms in first and second lien financings, private debt and equity placements, acquisition and sale of loans, securities, trade claims, and other illiquid assets. His clientele includes a diverse array of financial entities, such as litigation funders, business development companies, specialty lenders, investment banks, hedge funds and others. He attributes his success in the field to his client-focus and the way he approaches complex matters.

“I identify as a part of the client’s team. I use terminology like ‘our position,’ ‘our claims,’ ‘our proceeds,’ and I mean it. It may seem small, but I think it strikes a chord and makes a difference,” John noted.

John’s arrival is a strategic step in building upon the success and influence the Litigation Practice Group has achieved. His addition bolsters a powerhouse team of attorneys, including Marc Carmel and Edward Reilly, who have deep experience in this field. This addition aligns with the group’s recent Chambers ranking, which recognized it as one of five firms ranked in the 2024 Chambers Litigation Support Guide for Litigation Support Deal Counsel (USA-Nationwide) and Marc Carmel as one of eight attorneys ranked individually.

“With John, we truly are positioned to offer unparalleled expertise and service in the litigation finance realm. This not only affirms our leadership in the field but also demonstrates our ongoing dedication to expanding and enhancing the support we provide to our clients. We believe no other middle-market practice matches the scope of our engagements, and John’s arrival shows that the best in the business want to be here. We are thrilled to have him on the team,” said Marc Carmel, Chair of the Litigation Finance Practice and Managing Member of McDonald Hopkins’ Chicago office.

David Gunning, the Chair of McDonald Hopkins’ Business Department echoed Carmel’s sentiment.

“John is an invaluable addition to our Business Department,” said David Gunning, the Chair of McDonald Hopkins Business Department. “His experience will not only strengthen our Litigation Finance Group but will also enhance our broader finance capabilities. We’re excited to have John on board as we continue to grow our department and provide exceptional service to our clients across all areas of finance.”

John will be mostly remote from his home in New Jersey, but will be working closely with McDonald Hopkins’ Chicago office.

Boris Ziser is a partner and co-head of Schulte Roth & Zabel’s Finance Group, where he advises on a diverse range of asset classes and transactions such as asset-backed lending and securitization, warehouse facilities, secured financings, specialty finance lending and esoteric finance transactions. Boris manages the London finance practice and the global litigation funding and law firm finance practice.

With almost 30 years of experience, Boris works on a variety of asset classes, including life settlements, litigation funding, equipment leases, structured settlements, lottery receivables, timeshare loans, merchant cash advances and cell towers, in addition to other esoteric asset classes such as intellectual property, various insurance-related cash flows and other cash flow producing assets. He also represents investors, lenders, hedge funds, private equity funds and finance companies in acquisitions and dispositions of portfolios of assets and financings secured by those portfolios.

Company Name and Description: With a firm focus on private capital, Schulte Roth & Zabel LLP is comprised of legal advisers and commercial problem-solvers who combine exceptional experience, industry insight, integrated intelligence and commercial creativity to help clients raise and invest assets and protect and expand their businesses. The firm has offices in New York, Washington, DC and London, and advises clients on investment management, corporate and transactional matters, and provides counsel on securities regulatory compliance, enforcement and investigative issues.

Company Website: https://www.srz.com/

Year Founded: 1969

Headquarters: New York, New York, U.S.A.

Area of Focus: Finance, Litigation Finance, Private Credit, Structured Finance

Member Quote: “With its uncorrelated investment opportunity and plethora of rules that vary by jurisdiction (State-by-State and international), litigation funding is a complicated asset class that is rewarding at the same time, as it enables those with meritorious claims, but without the necessary resources, to pursue justice.”