In a significant development within the UK legal landscape, litigation funder Asertis has collaborated with a law firm and an insurer to create Legatus Holdings Limited. This newly formed entity is structured to manage cases from their inception to resolution, highlighting a shift in how legal services and investments are structured. Legatus comprises multiple subsidiaries, including KP Law—a law firm born from the merger of the UK divisions of two major US-based mass tort firms—and an insurance managing general agent, among others. The integration of these varied services under one corporate umbrella represents a distinctive approach in the litigation funding sphere.
Philip Holden, the Chief Executive Officer of Legatus and former General Counsel for Asertis, emphasizes the uniqueness of the venture, noting the lack of similar structures within the UK. According to Holden, the venture offers streamlined litigation finance by integrating processes like claim aggregation and adverse cost insurance within a single entity, allowing for comprehensive service delivery (read more here).
Asertis, the financial backbone of this new venture, is aggressively expanding its influence in commercial litigation, arbitration, and group actions. Despite operating at a financial loss in 2022, it rebounded with a significant profit margin in 2023. The company’s investments are supported by Arrow Global and AB CarVal, which manage assets worth billions.
This initiative also sheds light on the evolving legal regulations. While such complex, multidisciplinary structures are common in the UK, they remain rare in the United States due to regulations limiting nonlawyer ownership of law firms. However, certain US jurisdictions such as Arizona and Utah have started relaxing these rules, potentially setting a precedent for future legal industry changes.
Legatus’ formation could thus serve as a precedent for similar ventures in jurisdictions where law firm ownership regulations are loosening, offering comprehensive services through a vertically integrated approach. As the legal services industry continues to transform, the implications of such integrations may push regulators in the U.S. to reevaluate existing restrictions on nonlawyer ownership.