Investec Specialist Private Bank (‘Investec’) has become the first UK bank to offer litigation funding to clients requiring specialist finance to pursue a civil claim in court. The new offering enhances Investec’s presence in the legal sector and is in response to increasing demand for innovative funding solutions from law firms and their clients.
Investec has no pre-defined lending criteria, which means that it can provide fast decisions and competitively priced funding for commercial litigation. Each case is evaluated on its own merits and structured accordingly. The minimum funding is £250,000.
Jonathan Harvey, Specialised Lending, Investec Specialist Private Bank said, “The cost of litigation in the UK can be prohibitive. Many clients have strong cases but in such uncertain times are not prepared to take on the cash flow risk associated with pursuing their case. This can represent a significant opportunity cost in terms of lost revenue for the law firm and damages for the client..
“Over recent months we’ve been approached by a growing number of law firms looking for alternative ways to fund litigation in the commercial sector. This is partly driven by changes in the way law firms fund their own working capital and partly by claimants’ growing need for flexible finance. Based on the success of our pilot transactions mid-year, we anticipate significant demand.”
Investec’s specialist finance team works with law firms and their clients to find innovative and flexible ways to finance their cases. The availability of litigation funding can itself be a powerful asset in bringing about a negotiated settlement, rather than going to court.
Micheal Green, Partner, Enyo Law said, “At a time of significant market uncertainty, our specialist litigation practice seeks to achieve the best possible outcomes for our clients across a range of complex commercial disputes. Investec’s new offering is exactly what the sector needs. It’s a bank with a strong track record of developing and delivering innovative loans and can demonstrate the ability to see cases through to the finish.”
The new litigation funding offering complements Investec’s existing activity in the legal and professional services sectors, which includes providing funding primarily to support firms’ strategic growth plans and offering bespoke funding lines for special opportunities identified by the firm’s partners. The team is able to combine specialist professional services knowledge with financial structuring skills to create funding solutions for strategic growth plans and more traditional operational needs.
The Investec professional services team was set up in response to increased demand from managing partners at law firms who are considering financial support to make structural changes to their businesses as a result of the impending introduction of the Legal Services Act 2011.
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