Eric Blinderman (Courtesy photo)

Therium Capital Management, a Channel Islands-based litigation funder, is launching a new $430 million fund, bringing the total value of its institutional investments to more than $1 billion.

The fund is Therium's largest to date, following a $265 million vehicle raised in February 2018. It is built on the contributions of three institutional investors, including a sovereign wealth fund.

Therium expects to deploy the funds during the next two years on litigation and arbitration matters around the world, and said that market demand for its capital has been brisk. The company's pipeline in the U.S. has grown by 26 percent during the last year, according to U.S. CEO Eric Blinderman.

Therium has funded a number of high-profile class actions in the UK, including a lawsuit led by Mishcon de Reya against Google and the consumer class action led by Slater + Gordon against Volkswagen during the emissions scandal.

Blinderman, a former Proskauer Rose litigator, added that the company deploys its capital based on four criteria: likelihood of success on the merits, timing of recovery, quantum of recovery, and the judgement of the attorneys.

"Assuming those marry, we will sit there and make that investment," he said.

Founded in 2009, Therium has investment teams in the U.S., U.K., Germany, Spain and Norway. The company arrived most recently in Australia, opening an office at the start of this year to serve the Asia-Pacific region, where it has been investing since 2011.

London-based co-founder and chief investment officer Neil Purslow said Therium has no immediate plans to expand its operations, adding that while Hong Kong and Singapore are long-term targets, for now those markets are still in nascency.

"Our strategy is to be present in all of the major centres for litigation finance, where there are good opportunities, and for the moment, I think we are in all of those," he said.

Litigation funders have demonstrated strong growth during the past two years. Earlier this month, Burford Capital reported that operating profits surged 23 percent to $354 million last year. It raised $250 million on the London Stock Exchange last October and has launched a $50 million fund earmarked for female-led litigation.

Harbour Litigation Funding launched a £350 million fund last March, bringing its total funds raised to £760 million and UK law firm Rosenblatt launched its first fund last May after the firm’s £43 million stock market listing on AIM.

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