Australia’s newest litigation funder raises $20m to fund cases

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Investor Claim Partner’s (ICP) litigation funding arm, ICP Capital, has successfully raised $20m in new capital to fund several of the class actions against listed firms being managed by ICP.

ICP Capital is Australia’s newest litigation funding firm, launched last September by John Walker, co-founder of ASX-listed litigation funder IMF Bentham. It has launched claims against Bellamy’s, Sims Metal, and Spotless Group. It is also in advanced due diligence on two other class actions, including a claim against Dick Smith on behalf of shareholders.

ICP formulated its claim advisory and funding model in consultation with large institutional shareholders on the ASX. The firm offers benchmark funding commissions of between 8% and 25%, as well as a safety-net provision that ensures investors will not receive less than 50% of the net recovery after costs are accounted for in successful claim.

Walker said that ICP is heartened by the reception its funding model has received from the market. The reception is reflected in the strong take up in the capital raising, he added.

“The environment for shareholder claims in Australia has matured and shareholders now have more control over how their own claims are managed,” he said. “Claims funding has developed rapidly in recent years as an alternative asset class. Funds sourced in this capital raising are an important next step in building scale in our claims portfolio.”

Brokerage firm Bell Potter was lead manager for the capital raising. Investors in the offer took up shares in ICP Capital.

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