Fox Williams LLP acted for fully listed City of London Group Plc (“COLG”) on its investment into a legal funding joint venture with St Helen’s Finance Plc. The joint venture company is SHF Legal Funding Limited a subsidiary of St Helen’s Finance.
The deal includes loan facilities of up to £1,295,000. As part of these arrangements, COLG can acquire 20% of SHF Legal’s shares for £125,000. The £125,000 loan note will carry a 5% coupon and can be exchanged any time up to 31st March 2011.
SHF Legal Funding Limited will fund working capital for law firms who have won litigation cases but whose fees are subject to final agreement on the quantum of fees.
Eric Anstee, Chief Executive of COLG said: “This is our second strategic investment in support of our strategy to establish a group of fund management opportunities to finance professional service firms. It also brings with the transaction a partnership with St.Helen’s Finance Plc, which has extensive leasing expertise and capability”.
Paul Osborne (Head of Corporate) and Sean Williams of Fox Williams LLP advised COLG. St Helen’s Finance Plc was represented by MH Law. Paul Osborne said “It was very pleasing to represent COLG on this innovative and exciting joint venture with St Helen’s Finance”.