A closed ended fund in the UK called Juridica is looking for big returns investing in what it believes to be “an unsophisticated and relatively naïve” litigation market, the FT reports. “Cases are expensive to fund; there should be room for private capital,” says Neil Woodford, head of investment for Invesco Perpetual UK, which has taken a 29.5 per cent stake in Juridica.
Richard Fields, Juridica’s CEO, told the FT that the U.S. litigation market is currently about $33 billion (£24bn, €26bn), but just $4 billion is invested in it. According to Woodward, “[i]t’s an unsophisticated and relatively naïve market, so there should be a chance for some good returns.” Juridica will fund only corporate law cases.
Juridica reportedly plans to invest the £74.4m net it raised through its Guernsey listing last year in cases where the litigant is making a claim of $25m to $100m. In return, it will demand a share in any eventual award or settlement, FT reports. As discussed here previously, commercial litigation insurance broker ILF and hedge fund consultancy IGS Group recently said they, too, would raise funds to invest in an expected wave of corporate litigation cases.