Modern Litigation Funding
Sparkle Capital is a leading provider of competitively priced litigation funding solutions for law firms and claimants.
We de-risk litigation and create value for our clients. Our funding is non-recourse, so the claimant only repays the funding if the claim is successful.
We can fund up to £10m in claim value, but we focus on sub-£5m claims which are underserved by the litigation funding market.
WHY LITIGATION FUNDING?
Commercial litigation is expensive and the better funded party is typically better positioned.
Many claimants face this natural ‘funding’ barrier to justice. Historically, claimants have overcome this with family loans, overdraft facilities, bank credit lines or a supportive solicitor on a contingent fee (no-win, no-fee) basis.
In the last few years, third party litigation funding has become an established and recognised alternative to the above and is widely used in England and Wales today.
Long established in the USA and Australia, third party litigation funding brings private capital into the legal system, giving the opportunity for claimants to seek justice.
Today, litigation funding is used not just by the underfunded claimants but by companies for cashflow or balance sheet management purposes.
Commercial litigation remains very risky. In the UK, the principle of “the loser pays” is firmly entrenched.
For many, the risk of having to pay the defendant’s cost in case of an unsuccessful outcome is too much to bear. This Adverse Costs risk puts many off pursuing a claim.
After-the-Event (ATE) Insurance is available to cover this Adverse Costs risk for meritorious claims. This means claimants who lose a meritorious claim face no further financial liability risk.
Litigation funding is often only provided with ATE and together, is not just an enabler but a risk mitigator of litigation.
WHY SPARKLE CAPITAL?
There are now over 40 funders alone in the UK. However, most will only fund £10m+ claims, in contrast to Sparkle Capital, who can fund up to £10m claims, but with a focus on sub-£5m claims.
Many of these funders are explicitly or implicity investment funds with obligations to their institutional investors.
In contrast, Sparkle Capital is a privately-owned company belonging to the family of Fred Done, the English billionaire best known for (BetFred) and various other business interests including real estate and insurance.
As such, we have few of the restrictions and limitations that other funders face. This makes us easy and straightforward to work with.
We are never under pressure to fund cases and generate a target return in order to stay in business. This means, we can focus on our customers, our pricing and creating value for those in the uncertain midst of commercial litigation.
Sparkle Capital Events
Modern Litigation Conference – Manchester
The Modern Litigation Trends Conference will be back, and for the first time in Manchester, where we have partnered with the Manchester Law Society, PIC, and Professor Dominic Regan to bring you the latest updates in commercial litigation and by using our unique insights, what is to be expected for the remainder of the year and in 2019. The event will feature two more expert speakers from Manchester and will run from 9am until 1pm with lunch and networking included.
Modern Litigation Conference – Birmingham
The Modern Litigation Conference will be back in Birmingham to discuss our findings and insights of the market since our first conference last year. The event will include all of our original speakers such as Tets Ishikawa from Acasta, Seamus Kelly from PIC, Professor Dominic Regan, Paul Joseph from No5 Chambers, and Gavin Hamilton from 3PB Chambers. The event will cover the value of Litigation Funding, the change in costs, unique insights from Professor Dominic Regan, the viewpoint from Counsel, and everything compliance.
Sparkle Capital Products
Fixed Interest Release Funding
Fixed Interest only third party litigation funding product for claims sub £2m where Fixed Interest on Drawn Amounts are only:
35% if concluded in Year 1, 65% in Year 2, 90% in Year 3.
1&20 Litigation Funding
Competitively priced third party litigation funding from £300k to £1m for claims up to c. £10m. 1&20 has been named after its simple pricing approach to litigation funding with 1% per month interest plus 20% of the net damages.
1&20 can remove any financial liability for a share of the return whern combined with the appropriate After the Event (ATE) or Financial Guarantee (FGI) Insurance.
What can Sparkle Capital do for you?