Steven Cooklin, CEO of Manolete Partners PLC (AIM:MANO), presents the company's business model at the Proactive One2One Investor Forum.
Founded in 2008, Manolete distinguishes itself by specializing in UK insolvency cases. Unlike competitors such as Burford and Litigation Capital Management, Manolete buys claims, giving them full control, rather than merely funding someone else's case. They have established relationships with numerous insolvency practitioners nationwide, often paying for legal fees upfront and sharing settlements 50-50 with creditors.
Their focus is on directors who misuse company funds for personal use, leaving creditors, especially HMRC, unpaid. Boasting investments in over 1,200 cases, Manolete has generated returns exceeding £116 million. Their performance, particularly during and post-COVID, has been remarkable. Insolvencies dipped during the pandemic due to government interventions, but numbers surged post-April 2022. Manolete holds a dominating 67% market share in third-party litigation funding, with competitors lagging behind.
They've recently been involved in recovering "bounce back loans" from defaulting companies, yielding impressive results in collaboration with Barclays. Additionally, they've ventured into cartel cases, focusing on price-fixing cartels by truck manufacturers.
