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Mishcon de Reya advises Therium Capital Management Limited ("Therium") on £200 million fundraising
 FirmNews 
Date
11 May 2015

Mishcon de Reya advises Therium Capital Management Limited ("Therium") on £200 million fundraising

Mishcon de Reya recently advised litigation funder Therium Capital Management Limited ("Therium") on a market-transforming £200 million private fundraising to invest in the costs of large-scale commercial litigation, group litigation and global arbitration. Believed to be the largest single investment in litigation funding to date, it illustrates the maturing of a market that is now attracting corporate investors drawn to returns that are not correlated with asset classes such as equities or real estate.

Andrew Rimmington, Corporate Partner at Mishcon de Reya commented:

"I have been working with Therium since their launch in 2009 and we are delighted to have helped them with their latest £200 million private fundraising.  We have also been working closely with Therium to develop their innovative new portfolio funding model and the new £200 million fundraising will allow Therium to fund significantly more cases using this structure.

Litigation funding is increasingly seen as a form of asset finance that does not tie up cash flow and significantly reduces or eliminates the cost of pursuing potentially lucrative cases from their balance sheet. We therefore expect to see a further significant increase in the use of Litigation Funding as a form of "off balance sheet" funding of significant claims by major corporate clients in the future."

The new private fundraising has been provided by a large financial services company experienced in the area. This strategic investor will also become an equity investor in Therium Group Holdings, the new Jersey-based parent of Therium, following the acquisition of The City of London Group Plc's 50% stake in Therium. Therium's executive team remains unchanged and its existing funds will continue to execute the established strategy.

Neil Purslow, Founder and Chief Investment Officer for Therium said:

"This landmark deal will position litigation finance as a mainstream asset class and transform the litigation funding market. It is a real vote of confidence in our approach and a strong endorsement of our success to date."

“Our reputation is established as a principal-led funder, offering lawyers direct access to decision makers. It is our aspiration that more claimants and law firms will now come forward and choose to work with those litigation funders who can deliver consistent results.”

The transactions were led by John Byrne, Founder and CEO of Therium, working closely with Andrew Rimmington, Corporate Partner at Mishcon de Reya, with assistance from the Corporate, Banking and Tax teams, led by John Skoulding, Tax Partner and Banking Partner Raji Bartlett.