Mishcon de Reya launches new £150m litigation financing unit
Law firm Mishcon de Reya has today announced plans to launch a new litigation funding unit with Harbour, one of the biggest litigation and arbitration funders in the world.
The new venture, known as MDR Solutions I, will be used to assess and finance prospective litigation and arbitration cases originated by Mishcon de Reya clients but, Mishcon de Reya said in a statement today, will be operationally distinct from the law firm.
Having raised over $1.5bn of third-party capital since its inception, Harbour Litigation Funding is the largest privately owned, dedicated litigation and arbitration funder in the world.
Harbour already funds nine cases on behalf of Mishcon de Reya and has to date committed around $200m to cover the cases of claimants being advised by Mishcon de Reya – including those against Hiscox, RBS and BT.
The new unit, Mishcon de Reya said in a statement, will provide funding for non-performing loans and asset recoveries, complex fraud, intellectual property disputes and group litigation.
“For some time, we have been assessing the litigation funding market and exploring potential opportunities,” said Kevin Gold, executive chairperson of the Mishcon de Reya Group.
“We hope that MDR Solutions I is the first of a series of similar ventures in the future,” Gold added.
The deal reflected the “continued growth in the demand for litigation funding,” while the scale of Harbour’s investment reflected confidence in Mishcon de Reya’s expertise in the area – the firm employs over 280 litigators – said Harbour CEO Martin Tonnby.
Mishcon de Reya is set to float on the London Stock Exchange later this year after the firm’s partners voted to explore an IPO in April.