PI-Solutions has secured £5m finance from Burford Capital that has enabled it to offer advance funding to solvent PI law firms who are looking to exit the market.
PI-Solutions has launched a new company, Advanced Legal Funding, to manage the funding which can offer advanced capital release of up to 40% of the work in progress (WIP) of solvent firms, which are either leaving the market, consolidating activities or are in the final stages of internal run-off.
It will be offered as part of a package to maximise the value secured by the exiting firm, which will benefit from realising 100% of the value of its WIP.
“The advanced funding came about after we realised a number of prospective clients didn’t use our services due to a genuine need to quickly realise a proportion of the value locked up in work in progress, in order to provide cash for exit costs such as professional indemnity insurance run off cover, termination of leases, legal fees, redundancies and so on,” said PI-Solutions’ managing director David Johnstone (pictured).
“Having to deal with exit payments like these can drive solicitors to part with their asset – the firm they’ve worked so hard to build over the years – on a discounted basis. Now we can help provide an alternative as part of our ongoing commitment to assisting solicitors caught up in the maelstrom of change.”
PI-Solutions brokers a sale and offers a fully managed and compliant run off for firms of solicitors involved in PI that no longer wish to take on any more work.