Wednesday, 15 June 2011

Litigation funding attracts PE interest - LITIGATION TO DER NATION!

from Financial News

Bramden Investments, which typically invests between £250,000 to £10m in start-up companies in the UK, Europe and US, is providing around £20m in funding to a new litigation funding vehicle, Vannin Capital.


Vannin is seeking to profit from a new type of asset class, by paying the costs of legal claims in return for between 25% and 45% of the spoils. It was founded by solicitors Nick Rowles-Davies, Matthew Cox and William Evans at the beginning of the year, although Rowles-Davies has only just launched the firm full time after quitting his position as a partner at West End law firm Bridgehouse Partners.

Litigation funding is a small but fast growing investment class that promises high returns that are not dependent on favourable economic conditions. Legal disputes tend to increase during recessions.


There are currently only a handful of major players in London, including Aim-listed Burford Capital and London-based Harbour Litigation Funding, which have attracted a mix of institutional and wealthy private investors.
tech boom -> property boom -> social media boom -> litigation boom = harvest time at Sumo's dispute farm, assuming of course investors are cognisant of litigation risk and don't swamp litigators with too much of the kind of bureaucratic mess 3rd party funders like to swamp litigators with.

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