A listed litigation funder has withdrawn from the market and will return funds to investors, it revealed today.
In an announcement to the London stock exchange, Juridica Investments Ltd said it will make no investments other than for funding existing cases in its portfolio.
The company will seek to return capital to shareholders following the completion of current investments, the statement said. The business has begun a comprehensive review of costs and fees with the objective of reducing both. The statement added that Juridica will not be required to dispose of any assets ahead of their expected maturity, nor will the company have to enter liquidation ‘in the immediate future’.
Lord Brennan, former Bar Council chair and chairman of Juridica, said: ‘Both the board of Juridica and its investment manager acknowledge that scale and diversity are now required to invest successfully in this asset class, which is not achievable under the company’s existing structure.’
The company has declared an interim dividend of 5p per share payable to shareholders on 30 December.
The share price, 129p per share at the end of 2014, had fallen as low as 51p by this month, although it rebounded by 4p after today’s announcement.
The Guernsey-based funder raised £80m when it launched on the Alternative Investment Market in December 2007, but 15 months later it aimed to raise a further £35m.