Regional litigation funder lifts £1m cap on new investments

A niche litigation funder catering solely for regional claims has signalled its intention to upscale its investments.

Manchester-based Thaxted Capital will now back commercial disputes requiring more than £1m of funding, alongside those with lower values.

The firm, backed by US private equity funder Sandton Capital Partners, finances cases across the north east, north west, Yorkshire and the Midlands. It was launched last year with a remit to support smaller cases with a regional focus, but says the removal of the previous £1m cap is a sign of confidence from its financial backers.

Jack Bradley-Seddon, a partner with Thaxted Capital, said: ‘Although we are a relatively new entrant into the competitive commercial litigation funding market, we are in the enviable position of being based in the regions and able to make funding decisions with certainty and speed. 

‘We continue to serve the market for smaller claims but are delighted to announce the removal of the £1m cap, which opens-up opportunities to fund larger claims as well.’

The funder says the challenging economic environment has resulted in an increase in commercial disputes, but at the same time SME and mid-market businesses are not able to risk their cashflow on legal costs, hence why the market for financing smaller disputes has grown.

The firm is led by Bradley-Seddon, a former litigator in the London office of the US firm Akin Gump Strauss Hauer & Feld, and fellow partner Mark Dawkins, former global managing partner of Simmons & Simmons and head of Akin Gump’s London disputes group.

Sandton has investments worth £1.3bn in industries across Europe and North America, including manufacturing, media, agriculture and healthcare.

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