Therium founder Neil Purslow has emphasized that the shift in the firm’s operations is driven by emerging market opportunities, rather than by the mounting pressures facing both the broader litigation funding sector and Therium in particular. Image Source: MatterSuite

The firm, while retaining its existing leadership, has pivoted from direct litigation funding to an advisory-based model. Rather than supplying capital, it will now focus on guiding clients on how to access funding from institutional sources.

This spectacular fall from grace of a firm that claims to have raised $1 Billion in litigation funds comes even as the firm’s original entity, Therium Capital Management Ltd., was late in filing its financial accounts for the calendar year ending 31 December 2023. The delay in filings has prompted speculation about internal instability within the organization.

Therium Capital Management Ltd. was late in filing its financial accounts for the calendar year ending 31 December 2023.

CEO Neil Purslow cited global economic shifts as the key driver behind the strategic pivot. He pointed to the dramatic influx of funds into private credit markets and an increasing appetite among those investors for legal assets. According to Purslow, this trend presents an opportunity to connect litigation opportunities with non-traditional capital providers, opening up access to a broader range of investment sources.

As part of this shift, Therium has announced it will cease raising new capital and will no longer back fresh legal claims. However, the firm intends to see through its existing commitments. Its future operations will involve serving as an intermediary—linking claimants, legal firms, and corporates to institutional investors that traditionally have not engaged in litigation finance.

Therium has announced it will cease raising new capital and will no longer back fresh legal claims.

Purslow has pointed out that while large institutional investors may possess financial sophistication, they typically lack the in-house legal expertise needed to evaluate individual cases. This gap, he suggested, calls for a different strategy—one that can effectively connect these investors with viable legal claims through an intermediary capable of conducting proper case-level assessment.

Despite this ambition to serve as a conduit for major capital providers, questions linger about Therium’s own track record in evaluating legal claims. Sources close to the firm have raised concerns about its previous approach to due diligence, alleging that decision-making was often driven more by potential financial returns than by rigorous legal vetting.

Sources close to Therium have raised concerns about its approach to due diligence.

While speculative, one example of this may be the firm’s involvement in the controversial Sabah Arbitration—a case based on the historical lease of land in present-day Malaysia to the heirs of the former Sultanate of Sulu. The claimants, seeking enforcement of a US$15 billion arbitration award, faced a long series legal setbacks in multiple jurisdictions including Malaysia, Spain, France, the Netherlands, and Luxembourg. The Philippines, where the claimants hail from, has notably declined to involve itself in the case despite its political relevance.

Adding to the controversy, the legitimacy of the claimants themselves remains in dispute. Central to the arbitration is Fuad A. Kiram, who claims leadership of the Sulu royal lineage. Malaysia, however, designates him as a terrorist and has raised concerns about possible links between him and militant groups.

Therium’s investment in the Sabah arbitration, which promised a windfall if successful, may instead exemplify the perils of the former litigation funder’s insufficient scrutiny. Observers note that this case, alongside others such as the PACCAR truck cartel litigation—where the firm reportedly barely broke even on a substantial £24 million investment—reflects a broader pattern of financial overreach. A similar amount of £20 million is estimated to have been poured into the Sabah Arbitration, which is all but certain to result in a total loss.

£20 million is estimated to have been poured into the Sabah Arbitration, which is all but certain to result in a total loss for Therium.

It is widely speculated that this pattern is the leading cause behind Therium’s significant operational retreat, including an earlier surrender of its portfolio management to Fortress Investment Group in June of this year. The recent move to advisory services represents the latest in a series of steps to downsize and refocus the company’s strategy after a period of aggressive expansion. Despite this, Purslow notably did not cite PACCAR, financial overextension, or the increasingly challenging legal environment in the UK for litigation funders as a driver of Therium’s transformation.

It is widely speculated that a pattern of overextension is the leading cause behind Therium’s significant operational retreat, including an earlier surrender of its portfolio management to Fortress Investment Group in June of this year.

That the firm’s leadership remains in place through this transformation raises questions about how much will truly change. Indeed, the very individuals behind contentious investments like Sabah will now be guiding others in the litigation funding space—potentially spreading the same practices to larger, less experienced institutional players.

In retrospect, Therium’s commitment to the Sabah case may become a defining moment not just for the firm, but for the litigation finance industry at large. It underscores the reputational and legal risks involved when financial ambition outpaces due diligence—particularly in cases entangled with disputed sovereignties, political sensitivities, and contested identities.

As Therium Capital Advisors positions itself to influence the future of legal investment from behind the scenes, the industry will be watching closely to see whether the lessons from its past are truly learned.

REFERENCES

KnowSulu. (2025, June 17). Inside the Fortress: Capital control and the quiet collapse of Therium. https://knowsulu.ph

KnowSulu. (2025, July 18). Therium’s gamble: How big money still breeds big losses in litigation funding. https://knowsulu.ph

Taddia, M. (2025, October 6). Therium shifts focus with new litigation finance advisory. Law360. https://www.law360.com