Juridica Investments | Hedge Fund Notes
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Resource #1: 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. source
Resource #2: (1.14.08) What do Coventry FC and a litigation funder have in common? Not much, other than they are both benefiting from the largesse of a hedge fund with an eye for canny investments, Sisu Capital.
Sisu was just one investor clamouring to get its hands on shares of Juridica, the first specialist litigation fund to float in the UK. Third-party litigation funders are a burgeoning class. There are plenty in operation that have chosen not to go public.
So what is the advantage in floating? The obvious answer is ready money. Juridica's IPO on AIM at the end of 2007 raised £80m, which will be invested in claims.
Going public also lends credibility to Juridica - particularly when its chairman is to be none other than Matrix Chambers' Lord Brennan QC. source