A global litigation funding capability – a joint venture in UK and Europe

published Sep 02, 2014
Bentham IMF Limited is in the process of expanding its funding capability internationally. It has entered into co-funding and joint venture arrangements with subsidiary entities of funds managed by Elliott Management Corporation, a US-based investment advisory firm.

In March 2014, Bentham IMF Limited (IMF) announced that it had entered into co-funding and joint venture arrangements with subsidiary entities of funds managed by Elliott Management Corporation, a US-based investment advisory firm.

IMF has agreed to offer Elliott the opportunity to jointly fund cases in Asia Pacific with an initial budget of more than AUD$8.5 million. The parties will meet the litigation funding costs equally and in return they will share in any recoveries on an equal basis.  In addition, IMF will receive a fee for certain case management and advisory services provided to Elliott in connection with the co-funded cases.

IMF and Elliott will form a joint venture to fund cases throughout Europe but primarily in the United Kingdom and the Netherlands.  London based Bentham Europe Ltd, a wholly owned subsidiary of Bentham Ventures B.V., will identify, evaluate and recommend funding opportunities to the joint venture. 

IMF Chairman, Rob Ferguson, said the arrangements with Elliott are a key milestone in IMF’s evolution as a large-scale global litigation funder.  “IMF has a very strong record of success funding claims in Australia, and we have made no secret of our desire to replicate this success internationally after commencing business in the USA over two years ago.  Elliott brings to the table not only considerable funding resources but also experience in the field of complex international litigation.  The arrangements significantly bolster IMF’s footprint and funding capability in Asia and Europe and, alongside our existing US subsidiary completes our global reach,” he said.

IMF Executive Director, John Walker, who will be heading up IMF’s involvement in the joint venture said: “Based on the claims that have already been brought to our attention, many related to investments made during the global financial crisis, we see potential to build a high-quality litigation funding business in Europe”.