UK litigation funders’ war chests grow as class action interest mounts

UK-based litigation funders have amassed record war chests to finance the growing interest in class action law suits, according to a new study by RPC. Litigation funders’ assets jumped 11% last year to hit £2.2bn, almost double the £1.3bn that had been built up in 2017/18 and a more than ten-fold increase over the past decade. RPC’s analysis is based on regulatory data submitted by 15 of the largest UK litigation funders. Raymond van Hulst, EMEA executive director of Omni Bridgeway notes, however, that while low interest rates and excess liquidity had previously driven growth, a combination of rising inflation and higher interest rates means only the most successful funds will likely be attractive going forward and funders with low success rates will struggle.

Read more.

Keep Reading

Funder News

Omni Bridgeway hires in Canada

Laura Scheim has joined Omni Bridgeway in Montreal as an associate investment manager and legal counsel. Laura was previously in the litigation group of Osler, Hoskin & Harcourt LLP and brings expertise in commercial and tax litigation. She also clerked at the Supreme Court of Canada and the Quebec Court of Appeal. 

Funder News

Omni Bridgeway establishes institutional debt facility

Omni Bridgeway has established a A$250 million institutional debt facility. The facility has been used in part to redeem certain bonds and wholesale notes prior to their scheduled maturity. The facility also includes an additional commitment of A$102 million of debt capital to enable the company to optimise its medium-term capital management. The debt facility was provided by funds managed by Northleaf Capital Partners and Pacific Equity Partners. Law firm G + T advised on the financing, acting as lead counsel across eight jurisdictions.

Insights

A Primer on U.S. Defense-Side Litigation Finance

Jason Levine of Omni Bridgeway reports that creative litigation funders are actively working to develop bespoke defense financing solutions for clients and notes that of the three primary forms of defense financing, reverse contingency financing applies most broadly to the most types of cases.

Before You Go

Never miss a thing in the litigation finance market.