Wednesday 11 September 2019 12:33 pm

UK litigation funder Augusta raises $115m from US investment manager

The UK’s largest litigation funder by case volume Augusta said today it had raised $115m (£93m) from an unnamed US investment manager.

Managing director Louis Young said: “This development is a strong endorsement of the litigation funding industry and in particular, our market-leading experienced team”.

Litigation funders back individual legal cases or portfolios of cases and take a slice of any financial settlement.

Read more: Litigation Capital Management bosses say Burford woes will not dampen sector

The nascent industry has been rocked recently by allegations made against the world’s largest funder Burford Capital.

Shortseller Muddy Waters criticised its governance and its use of fair value accounting last month, wiping 40 per cent off its market capitalisation in a day.

Young said: “Burford has always been a very strong poster child for the market and it was a shame to see what occurred with them”

Young said Augusta may one day join the likes of Burford and Litigation Capital Management on the public markets.

Read more: Burford Capital rebuffs news of possible ‘revenge porn’ law suit

“While you have got significant investment houses and funds and groups who wish to come in and engage on a one-to-one basis with us, sometimes it is easier just to go down that track. 

“That is the modus operandi we understand and we know and how we built our business so continuing on with more of that is quite logical for us. Still, it doesn’t mean a market offering is off the table,” he said.

Fellow UK litigation funder Vannin Capital was last week acquired by New York investment firm Fortress Investment Group a year after scrapping its own plans for a London listing.