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After approving more than $95 million in legal funding to help divorcees and separated couples get through the stress of dividing assets, Sydney-based lender JustFund has secured close to that amount again - some $86 million in additional capital - to reach thousands more Australians.
Launched in 2022 by former lawyers Andy O’Connor and Jack O’Donnell together with fintech entrepreneur Craig Carroll, JustFund has built a network of more than 600 accredited law firms around Australia and provides a flexible line of credit to pay legal bills for family law matters.
The company has secured a $75 million senior debt facility from Global Credit Investments (GCI), as well as $11 million in mezzanine funding provided by various family offices.
The debt facility replaces an initial $7 million in debt funding provided by Xilium Capital, which also led a $5.7 million seed round, signifying a total of $92 million in capital raised.
Other backers include Startmate, The Legal Tech Fund from the United States, GXE, Quay Fund Services, impact investment firm Tripple, UpBank founder Dom Pym, and Matt Allen of Tractor Ventures.
"This new round of capital will enable JustFund to help thousands more Australians to achieve a fair and equitable distribution of relationship assets and to rebuild their lives following a divorce or separation," says JustFund co-founder and executive chairman Craig Carroll.
"JustFund’s flexible legal funding has been uniquely tailored to a process that is fraught with emotional turmoil and financial strain.
"We often see that the situation is exacerbated by disparities in financial sophistication, access to funds, income capacity or credit scores between parties."
The majority of JustFund's clients are women at almost 70 per cent, while 74 per cent are the primary carers of children. Both male and female borrowers come from a broad spectrum of socio-economic groups.
"Many of our clients apply to JustFund because they are not eligible for a personal loan and get stuck, unable to afford to progress their separation," says co-founder and co-CEO Jack O’Donnell.
"Typically, they have started the separation process and need additional funding to cover legal fees, or they seek financial assistance from the outset of their matter so they can better manage rent, mortgages, school fees and other living costs on top of legal fees."
Fellow co-founder and co-CEO Andy O'Connor says JustFund's legal funding enables clients to get the advice they need now and pay when their matter resolves, and only from the proceeds they receive at settlement.
"Unlike traditional lenders, we base our assessment on someone’s legal entitlement to relationship assets," says O'Connor.
"This enables us to provide flexible legal funding that doesn’t rely on income, employment or a credit score. Our mission is to help Australians achieve a fair financial settlement so that they can move on with their lives."
Gavin Solsky, co-founder of GCI Funds, says the ollaboration with JustFund is an example of a type of funding that "unlocks the transformational power of private credit".
"We are pleased to be aligning with JustFund and supporting their mission to help Australians access legal representation during a challenging time in their lives," Solsky says.
"We are impressed with the track record of JustFund to-date and are pleased to support its rapid growth with this new debt facility."
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