Prominent litigation funder Calunius Capital will not be investing in any new cases, the Gazette has learned.
Calunius said that its latest fund, worth £100m, had now completed its investments and no new cases would be financed from it. In a move that may surprise the wider market, the funder said it had no plans to launch another fund.
Calunius has invested around £200m in litigation since 2010, and with Leslie Perrin, chair of the Association of Litigation Funders (ALF), as its chair, is one of the most high-profile operators in the market. In 2016 it reaped the rewards of backing a claim by Rusoro Mining Ltd against the Venezuelan state, with Rusoro awarded $1.2bn at arbitration.
Commenting of the decision not to launch a further fund, Perrin told the Gazette: ‘We are delighted that we have been able to deliver the returns that our investors were seeking, and the [Calunius] partners are very happy for now to take a pause, to manage the remaining funds.’
The four Calunius partners will stay on to manage existing cases to their conclusion, and Calunius will remain a member of ALF.
Elsewhere in the funding market, specialist insolvency funder Manolete Partners announced its intention to list on the AIM on 14 December, expecting to raise £29.4m. The firm cited a favourable environment for insolvency funders thanks to the Jackson reforms, as well as a growing market for UK insolvency claims valued at more than £1bn.
However, another funder, Vannin Capital, recently pulled back its own plans to float, citing ‘volatility in the equity market’. Its chief executive Richard Hextall said it was under ‘no pressure to list in the near term’.