Third-party litigation funding has jumped into the mainstream of financial investments with the first admission to AIM of a specialist litigation fund.
Juridica Investments, founded by two US lawyers, will invest in claims of more than $2m (£1.01m), mainly focusing on US-based litigation and international arbitrations.
Norton Rose dispute resolution partner Sam Eastwood said: “The launch serves as further reinforcement that the litigation market’s going to be going through quite a change – and not just in the UK.”
Juridica has an investment management arm that will locate and vet cases that could be funded. It will also use around half of its £78.4m IPO proceeds to make loans to firms where direct investment is not permitted or wanted by plaintiffs. One such firm is Washington DC-based Fields & Scrantom, owned by Juridica’s founders Richard Fields and Timothy Scrantom.
The biggest single investment or loan it will make will be $10m (£5.06m), unless its board gives special approval. Although initial cases will be US, the company hopes to invest in cases in other jurisdictions.
Guernsey-registered Juridica’s chairman is Lord Brennan QC of Matrix Chambers, a former chairman of the bar of England and Wales.
Travers Smith head of corporate finance Spencer Summerfield advised Juridica on its float. Ozannes advised on the Guernsey aspects, while Cenkos Securities was the company’s nominated adviser and broker.