Manolete set for boom as firms go bust
AN INSOLVENCY litigator backed by City veteran Jon Moulton has floated in London ahead of an expected boom in lawsuits involving collapsed companies.
Manolete Partners said it would raise £29.4m in the stock market float, making it the latest litigation finance business to eye a public listing in Europe.
Manolete has taken on 179 cases since it was founded in 2009, including a claim against former Blue Peter presenter Anthea Turner in 2016 over the collapse of her ex-husband Grant Bovey’s business.
The company has also acted on a case against two executives of air specialist Cobham over a subsidiary that went bust and took on a claim from an insolvent bingo hall on Hastings Pier against Hastings Borough Council.
Although soaring in popularity, the litigation funding sector has been accused of being “parasitic”.
However, chief executive Steven Cooklin, the former HSBC banker who set up the business, said Manolete differed from rivals such as Vannin because it focused on taking over insolvency claims rather than backing disputes in exchange for a slice of any damages.
He said: “The introduction of capital into the legal world is a new phenomenon and in large part it’s been positive, [but] I am not a comprehensive flag-waver of the litigation funding industry.
“I’m not yet convinced the market is as transparent and robust and ethically sound as it might evolve to be.”
Mr Cooklin, who retains an 18pc stake in the business, added: “If there is going to be a hard Brexit, a recession, one of the few businesses likely to get more busy is a company that invests in insolvency litigation, even morbidly.”