Trending Now
Commercial Deals

Lexolent Litigation Fund 1 SP Achieves First Successful Investment Conclusion, Delivering Access to Justice in Landmark DIFC Case

August 12, 2025

Lexolent Litigation Fund 1 SP Achieves First Successful Investment Conclusion, Delivering Access to Justice in Landmark DIFC Case

Lexolent Litigation Fund 1 SP, the inaugural fund from litigation funding disruptor Lexolent, and the first litigation fund to be based in the UAE, has achieved its first successful investment in a case litigated before the Dubai International Financial Centre (DIFC) Courts. The matter—Claim No. CFI 081/2023, concerned an unpaid commission claim by Dubai based businessman, Michael Forbes.

Absent Lexolent’s funding, Mr Forbes would have been unable to pursue the case and secure the payment to which he was rightfully entitled. The investment, which was concluded over just 21 months, will generate a very high internal rate of return (IRR) for Lexolent’s Limited Partner (LP) investors, showcasing the fund’s ability to deliver both strong financial performance and tangible social impact.

The result was a resounding success for both parties. Lexolent secured a strong return on its investment, while Mr Forbes obtained a substantial and life-changing judgment in his favour.

“Without Lexolent’s help, I would not have been able to right the wrong that was done to me,” said Mr Forbes. “Lexolent gave me access to justice, and I am delighted to have been introduced to them. I have learned through this experience that not all litigation funders are the same. Nick Rowles-Davies is very much one of the original founders of this industry and is exceptionally easy to work with. His expertise and experience made this transaction straightforward and highly professional.”

Lexolent CEO, Dr Nick Rowles-Davies, commented: “This is a perfect example of litigation funding in action. Without our investment, Mr Forbes would not have been able to secure such a substantial and transformative judgment. It was our pleasure to assist him—and, from our perspective, it was also a very strong investment, particularly given the high IRR that will be achieved for our LPs over a short 21-month period.”

This first win for Lexolent Litigation Fund 1 SP marks a significant milestone for the company as it continues to reshape the litigation finance landscape both in the Middle East and globally. The case underscores the vital role litigation funding plays in levelling the playing field between claimants and well-resourced defendants, ensuring that justice is not a privilege but a right accessible to all.

Syed Mujtaba Hussain, founding partner of UAE based boutique law firm Emirates Legal, acted for Mr Forbes and instructed David Parratt KC and William Frain-Bell KC.

Mr Hussain commented: “This was the first time I have used litigation funding but I will certainly do so again. Lexolent were easy to work with and allowed the lawyers to do their job without concern over fees being met. Litigation funding is a valuable tool and it assisted in producing a great result for Mr Forbes. We are all delighted with the outcome.”

About Lexolent:

Lexolent is a globally coordinated network for legal finance professionals and the first litigation fund to be based in the UAE, offering innovative funding solutions and unmatched expertise in litigation finance. Led by industry pioneer Dr Nick Rowles-Davies, Lexolent connects capital providers with high-value legal claims, delivering results for claimants and investors alike.

Secure Your Funding Below
Secure Your Funding Sidebar

Commercial

View All
Commercial Regulatory Issues

UK Courts And Policymakers Narrow The Post-PACCAR Gap For Funders

By John Freund |

The UK’s fast-evolving funding landscape continues to clarify what works—and what doesn’t—after PACCAR. In July, the Court of Appeal in Sony Interactive v Neill held that LFAs pegging a funder’s return to deployed or committed capital, even when paid from proceeds and subject to a proceeds cap, are not damages-based agreements. That distinction matters: many CAT and other group LFAs were rewritten over the past year to swap percentage-of-recovery models for multiple-based economics, and the ruling indicates those structures remain enforceable when drafted with care.

Quinn Emanuel's Business Litigation Report traces the arc from PACCAR’s treatment of percentage-based LFAs to Sony v Neill’s clarification and the policy response now gathering steam. The analysis underscores that returns keyed to funding outlay—not the quantum of recovery—avoid the DBA regime, reducing the risk that amended post-PACCAR agreements are second-guessed at certification or settlement approval.

The Civil Justice Council’s June Final Report outlines a legislative repair kit: a statutory fix to reverse PACCAR’s impact prospectively and retrospectively; an explicit separation of third-party funding from contingency-fee arrangements; a shift from self-regulation to light-touch statutory oversight; and, in exceptional cases, judicial power to permit recovery of funding costs from losing defendants. The CJC would also keep third-party funding of arbitration outside the formal regime.

For market participants, the immediate implications are contractual. Multiples, proceeds caps, waterfall mechanics, and severability language deserve meticulous treatment; so do disclosure and control provisions, given heightened judicial scrutiny of class representation and adverse costs exposure.

Commercial People Moves

Burford Hires Veteran Spanish Disputes Lawyer to Bolster EU Footprint

By John Freund |

Burford Capital has strengthened its European presence with its first senior hire in Spain, recruiting Teresa Gutiérrez Chacón as Senior Vice President based in Madrid.

According to the press release, Gutiérrez Chacón brings over 16 years of experience in complex dispute resolution, international arbitration, and legal strategy—most recently serving as Chief Legal Counsel for Pavilion Energy’s European trading arm. Her prior roles include positions at Freshfields and Gómez‑Acebo & Pombo, and she has been recognized by Legal 500 as a “Rising Star” in Litigation & Arbitration and named Best Arbitration Lawyer Under 40 by Iberian Lawyer.

In her new role, she will deepen Burford’s relationships with Spanish law firms and corporations, positioning the firm to address the growing demand in Spain for legal finance solutions. Burford emphasized that Spain’s sophisticated legal market presents “significant opportunities,” and that adding on‑the‑ground leadership in Madrid enhances its ability to deliver local insight and cross‑jurisdictional support.

Philipp Leibfried, Burford’s Head of Europe, noted that this hire demonstrates a commitment to expanding in key European jurisdictions and strengthening Burford’s role as a “trusted partner” for law firms and businesses seeking innovative capital solutions.

Case Developments Commercial

UK Supreme Court Upholds Key Class Action Win for Funders in Apple Case

By John Freund |

The UK Supreme Court has declined to hear Apple’s appeal in Apple Inc and others v Gutmann, leaving intact a Court of Appeal decision that significantly strengthens the position of litigation funders in collective proceedings before the Competition Appeal Tribunal (CAT).

An article in Law Gazette reports that the Supreme Court refused Apple’s petition on the grounds that it did not raise an arguable point of law, effectively endorsing the lower court’s April 2025 decision. That ruling affirmed that litigation funders can be paid directly from damages recovered in a class action before distributions are made to class members. The decision resolved longstanding ambiguity surrounding Sections 47C(3) and (6) of the Competition Act 1998 and Rule 93 of the CAT Rules 2015.

The Court of Appeal held that the CAT has wide discretionary authority to order payments to class representatives for costs, fees, and disbursements, provided such allocations are deemed fair and reasonable under the tribunal’s supervisory jurisdiction. This was a pivotal victory for claimant-side funders, who have long warned that being last in line for recovery—after damages are disbursed—posed unacceptable risk in UK opt-out cases.

Law firm Charles Lyndon, counsel for class representative Justin Gutmann, welcomed the Supreme Court’s decision not to revisit the matter, stating that it brings “welcome certainty” to the evolving collective proceedings regime and affirms the CAT’s broad discretion in addressing complex, end-of-case allocation scenarios.

This decision is expected to have a profound impact on the UK’s competition class action landscape. Funders now have greater confidence in the recoverability of their investments, potentially spurring more funding activity in CAT proceedings. The ruling may also prompt defendants to reconsider their settlement calculus, knowing that funders now enjoy a more secure repayment pathway.