A London litigation funder today pledged £200m to meet the costs of large-scale commercial litigation in jurisdictions across the world.

Therium Capital Management said its fund, which has come from a ‘large financial services company experienced in this area’, is the largest single investment in litigation funding to date.

The private investor will also become an equity investor in Therium Group Holdings, the new Jersey-based parent of Therium.

Neil Purslow (pictured), founder and chief investment officer of Therium, said the finance promises to ‘transform’ the litigation funding market and position litigation funding as a rival to stocks and bonds as an investment option.

He added: ‘It is our aspiration that more claimants and law firms will now come forward and choose to work with those litigation funders who can deliver consistent results.’

The £200m will help fund commercial litigation, group litigation and arbitration in the UK, US and other jurisdictions. The company says the demand for funding is reflected by a tripling of deals year on year.

Since being founded in 2009, Therium has funded a range of claimants, including group actions such as the shareholder claim against the former directors of Lloyds Group, intellectual property cases, anti-trusts claims and international arbitration.

The company says its funds are invested profitably in seven out of every 10 cases.

Therium was founded by lawyers Purslow, formerly with international firm Reed Smith, and John Byrne, formely managing partner of the London office of Dorsey & Whitney.