Seven Stars Legal raises investment to enable litigants to fund their legal cases.

Diversified Legal Investment

Join Seven Stars Legal as a leading litigation finance company in the UK

Litigation finance

When law firms take on ‘no win, no fee’ cases, although the precedent which dictates how lower courts must decide provides close to complete confidence in the outcome, they still need to finance legal processes until a settlement is reached. Whilst this has traditionally been on a self-financing basis, the sheer scale of ‘no win, no fee’ claims and the increasing maturity of litigation financing has now opened other viable funding routes to these law firms, thus allowing them to both concentrate their own cash flow on expansion, structure and advancement, and increase the scale of representation they can offer. Litigation Finance is simply the involvement of a third-party investor to provide the required funds, in exchange for a percentage of the solicitors’ case % income at case completion.

Litigation finance market

The increasing number of ‘no win, no fee’ actions and the continued increase in recognition of consumer rights in the UK has led to significant growth in the sector. Litigation Finance originally grew out of the banking crisis as many law firms refused to take on, or even abandoned, cases due to recession pressures on cash flow. The additional capital that became available through Litigation Finance then helped lead to the stratospheric growth of the ‘no win, no fee’ consumer litigation sector. The UK Law Society now estimates that the UK Litigation market is worth more than £30 billion to the UK economy.
Share in this opportunity, be a part of the growth of UK Law and help provide access to justice.

About Us

We are a non-bank lender targeting market leading investor returns working within a well-regarded and regulated industry sector. The sector identified is UK Legal Services, and specifically litigation finance and litigation case generation. Initially the business will only be investing in the UK, and with firms working in the UK legal sector, which is globally recognized as one of the preeminent jurisdictions for legal services.

Seven Stars was incubated by a successful Litigation Finance team, with an incredible track record, who identified a very substantial funding opportunity that far exceeded their inhouse requirements. Accordingly Seven Stars has been initiated to become a substantial independent non-bank litigation funder. As of the end of 2022, our affiliate has raised £22M and funded over 15,000 litigation cases, and have generated an additional potential 250,000 cases, without any defaults.

We believe that the key to successful litigation financing lies in the selection of cases or case types to fund. At Seven Stars we take time to select the cases which we believe offer the most secure route to a successful and therefore profitable judgement.

We specifically target precedent-based legal claims for investment, which reduces the risks involved significantly.
We normally lend to regulated law firms or to marketing companies helping such Law firms to acquire cases ensuring that there is a strict mechanism of controls in place for borrowers.
We insist on ATE insurance cover on funded cases.
We will only fund cases against large, liquid entities, such as Banks, Housing Authorities and Utilities companies.
We establish minimum claim values for each sector to ensure sufficient capital cover

FAQs

What is a precedent-based case or ‘no-win, no-fee agreement’ and why are they the best cases to finance?

The word ‘precedent’ refers to a court decision that is considered as authority for deciding subsequent cases involving identical or similar facts, or similar legal issues. Once a legal precedent has been set, courts are required to apply the law in the same manner to all cases involving the same facts. When coupled with the UK Statutes (which govern how people and firms must act), many legal professionals rightly feel that this combination ensures individuals in similar situations are treated alike instead of based on a particular judge’s personal views.

What are “No Win, No Fee” cases?

Once a case is acquired by a Solicitor, there are numerous costs (or disbursements) that need to be met during the litigation process in order to reach settlement. In traditional fee-based litigation, the claimants would be expected to provide these fees throughout the process, although this reduces massively the access to representation for those who are unable to cover such costs. No Win, No Fee cases are simply where a 3rd party, either the law firm or an external party, cover such costs in exchange for a percentage of the damages awarded as a result of the claim and the No Win, No Fee agreement (NWNFA) that covers the law firm/claimant relationship.

What are the main benefits of litigation finance for law firms?

Volume. The principle benefit to law firms of external litigation funding is the ability to carry more cases than their own cashflow would allow, providing wider access to justice for claimants

What is the Taxation status related to an investment in a Seven Stars bond?

All investors should seek independent tax advice.

Why do solicitors need funding?

The law is not cheap, and running a litigation, at no cost to the client, only compounds the cash drain on law firms. Third party funding allows these firms to focus their own capital on operations and overheads, whilst borrowing the recoverable legal fees from 3rd parties.

How is my capital protected?

Each case as a tangible value, based initially on the costs (covered by insurance) and then on the value of the NWNFA. Security is provided through either the issue of a debenture against the law firm and its assets, or an assignment of interests in the fee income. Both the charge and Deed of Assignment are overseen by the appointed Security Trustee on behalf of all Bond Holders.

Is litigation finance regulated?

No, Litigation Finance is not a regulated activity at this juncture. The Registrar, Trustee and Custodial agent for Seven Stars is an FCA registered entity, with the registration number 593293.

What is the criteria for case selection?

Seven Stars will fund law firms wishing to borrow case disbursement costs, case acquisition and legal fees on cases where:
• A strong, proven legal precedent exists or where clear line of claim and governing law exists.
• Where there are solvent defendants such as Banks, Energy Firms or Housing Agencies.
• Sufficient volume of cases to ensure an ongoing supply and continued recycling of capital.
• Seven Stars will also fund marketing companies helping law firms to acquire cases.
We will also assess the applicant law firm for financial credibility prior to lending, and will ensure that the relevant security is provided from the outset.

Share in this opportunity, be a part of the growth of UK Law and help provide access to justice.

Eligible investors that would like to take advantage of this opportunity should contact an Authorised Representative for Seven Stars Legal Ltd or their financial adviser.

Professional investors, such as Portfolio Managers, Family Offices and Trustees interested in buying our bonds can contact us at hello@7stars.legal for further information.