Litigation funder targets institutional space

Litigation funding has now moved into the institutional/superannuation space.

A new litigation funding firm, Investor Claim Partner (ICP) has been launched with the claim that it will be geared towards helping institutional investors suffering financial losses from corporate wrongdoing, including that by superannuation funds.

The company is the brainchild of one of the co-founders of well-established publicly-listed litigation funder, IMF Bentham, John Walker and has declared that it will act as a fiduciary adviser to institutional shareholders wanting to bring claims against ASX-listed companies for losses suffered as a result of board or management wrongdoing, such as non-disclosure of material information or misleading and deceptive conduct.

The company said its service would streamline the process for investigating, initiating and managing investor claims and seeking earlier settlements, reducing the time and cost involved and ensuring a greater share of any damages awarded goes to shareholders.

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Walker said the environment for shareholder claims in Australia had matured in recent years to the point where shareholders now had far more control over how their own claims were managed.

"The body of law around class actions and investor claims is more established, the issues are better understood and there are more funders willing to invest in shareholder claims," he said.

"Whether they know it or not, this puts shareholders in a much stronger position to determine the financial and other terms under which their claims proceed.

"That's where ICP comes in — we will be applying our experience running investor claims to helping institutional shareholders identify, assess and manage claims in a way that ensures they get maximum recovery of losses in a timely way."