Augusta Ventures has done an analysis of where its £12.8m of funding has gone on the 56 cases it has financed up to October this year since it started doing business in 2014. Its analysis shows that barristers are the top recipients of the funding. Some ’32% [of funding] has been for counsel, followed by solicitors (27%), disbursements (21%) and after-the-event insurance (20%)’.
Solicitors are very clearly the main people on the receiving end of claims. Augusta says: ‘Of the 32% (or 18 cases) that are professional negligence claims, 56% (or 10) are against solicitors. No other category of litigation registered more than 4% of the total.’
After the event insurance primarily covers opponents’ costs and it is also used to pay for disbursements made by the insured. Source: Augusta