Mischon de Reya Bets on Litigation With $206 Million Funding Arm

London law firm Mishcon de Reya LLP is betting on the outcome of its lawsuits by launching a 150 million pound ($206 million) litigation funding unit.

Mischon is partnering with Harbour, one of the world’s largest funders, to finance litigation and arbitration cases for Mishcon’s clients. Harbour has already supported several cases brought by Mischon, including against Hiscox Ltd, Natwest Group Plc and BT Group Plc, the firm said in a statement Wednesday.

The law firm, that is well known for advising Princess Diana in her divorce, has a storied past. Founded just before World War II, it represented Gina Miller in two Supreme Court cases that complicated the government’s Brexit plans. The firm has a reputation for handling tough corporate litigation.

Mishcon said earlier this year it was considering an initial public offering as soon as the fourth quarter, which could make it the largest publicly-traded law firm in the U.K.

“For some time, we have been assessing the litigation funding market and exploring potential opportunities,” said Mischon’s executive chairman, Kevin Gold.

Litigation funding is a fast-growing industry that backs some of the biggest lawsuits, from high-profile divorces to complex civil fraud. If a case is successful, the funder will generally take a cut of the damages, which can be substantial. But betting on the outcome of a lawsuit is often risky, which is why litigation funders usually apply high interest rates for borrowers.

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Ellen Milligan in London at emilligan11@bloomberg.net

To contact the editor responsible for this story:
Jeremy Hodges at jhodges17@bloomberg.net

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