We are delighted to announce the completion of a £5.8m investment in Connection Therium Limited, a “Jersey Expert Fund” providing commercial litigation funding.
- Investment Date: April 2016
- Investment: £5.8m
- Legal advisers: Gateley plc
Litigation funding is where a third party provides the financial resources to assist a claimant with expensive litigation or arbitration cases in return for an agreed share of the proceeds of any successful claim. The fund will be advised by Therium Capital Management, a leading commercial litigation funder who now advises over £8million of our clients’ capital following an initial investment in 2013.With London now established as a global centre for legal dispute resolution, and litigation funding for UK and international cases becoming more mainstream, the market potential is large and growing.
A clear need for litigation funding exists because the prohibitive and uncertain costs of pursuing a claim can often deter claimants from pursuing meritorious claims. All cases Therium consider relate to commercial litigation and it does not fund cases relating to construction litigation, privacy, defamation, personal injury or divorce.Therium deploys litigation funding across a range of industry sectors, from financial services to technology and energy, in areas such as intellectual property, anti-trust/competition claims and international arbitration. It is currently funding the high profile shareholder group action claim against former Lloyds Banking Group directors over the 2008 HBOS merger.
This opportunity was attractive to our clients because it provides rare access to an “uncorrelated asset” class. Uncorrelated assets are those whose value is unaffected by changes in the wider economic environment or financial markets.
By adding such assets to a portfolio, investors can reduce overall portfolio risk while boosting returns, decreasing exposure to public market volatility and providing insulation against wider economic factors which could impact other assets.
Established in 2009 by a team of experienced lawyers, Therium has since built up a strong track record of success in this specialist sector.
"This is a compelling opportunity for our private investor clients – both in itself and in the context of wider portfolio diversification.” Claire Madden, Managing Partner