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

Core Viewpoint - Katch Investment Group is seeking new capital for its Katch Legal Lending Fund, targeting a 20% annual return, following the liquidation of a previous fund due to lower-than-expected payouts [2][4]. Company Summary - Katch Investment Group is raising funds for its open-ended Katch Legal Lending Fund, which will finance litigation, including a £250 million ($341 million) lawsuit against Uber Technologies Inc. [2] - The firm is winding down its KLIF fund, which had a value of £422 million and financed claims related to a car finance misselling case, after writing down its value and halting redemptions [4][5]. - The KLIF fund has not attracted new investors for almost a year and is undergoing voluntary self-liquidation, although the firm intends to meet outstanding obligations [5][6]. Industry Summary - The litigation funding market allows investors to pay legal costs in exchange for a portion of any settlement, presenting both opportunities and risks [3][7]. - The industry is experiencing challenges, including delayed payouts and regulatory scrutiny, but is projected to grow from a current market opportunity of $17.5 billion to over $67 billion by 2037 [13]. - Despite risks, some investors see potential in legal funding, with Katch identified as a leading performer in the sector [14].