UK Legal Funder Stung by Car Finance Saga Is Raising Cash Again

A UK litigation funder is seeking fresh capital less than six months after it liquidated a key fund, the latest twist for a firm that’s navigated a bumpy year.

Katch Investment Group is raising new money for its open-ended Katch Legal Lending Fund, targeting a 20% annual return, according to a pitch deck seen by Bloomberg News. The fund’s proceeds will be used to finance litigation including a £250 million ($341 million) lawsuit against Uber Technologies Inc. on behalf of thousands of London’s black-cab drivers.

In the growing market of litigation funding, investors pay the legal costs of a lawsuit ...