Litigation funder Vannin Capital said today it is planning to list in London next month in a float that market sources say could hit a £1bn valuation.
The listing will comprise an approximately £70m issue of new shares by the company and the sale of shares by existing shareholders to facilitate a free float of at least 25 per cent of its shares.
It also announced the appointment of former Allen & Overy senior partner David Morley as its chairman.
Morley was the magic circle law firm’s managing partner from 2003 to 2008 before being appointed senior partner, a role he held until his retirement from the firm in 2016.
Speaking to City A.M. Morley said Vannin has decided to float because “it has reached a stage where it has some ambitious growth programmes and needs to access capital and it needs to continue to raise its profile, both in the UK and abroad.”
Morley said litigation funding is a “fast growing but still nascent market” with “everything to play for in coming years”.
Litigation funders provide capital to law firms, businesses or individuals to support legal disputes, taking a slice of any financial settlement in return.
It has been a growing sector with Burford Capital, which floated in 2009, achieving stellar returns in recent years and hitting a market capitalisation of over $4bn (£3.07bn).
Earlier this year City law firm Rosenblatt floated, in part to provide a war chest for funding cases, while insolvency-focused litigation funder Manolete Partners has appointed broker Peel Hunt to advise it on an upcoming London listing.