JustFund Accelerates Growth with $92M Capital Raise
Innovative legal funder levels the playing field and helps Australians to get a fair and equitable outcome in their family law matters.
JustFund, a mission-driven social lender that provides an innovative and flexible line of credit to pay legal bills for family law matters, has today announced the closing of new capital raised from Xilium Capital and Global Credit Investments. JustFund will use the capital to accelerate the growth of its legal funding service, so that more Australians can access legal representation when going through a marital divorce or relationship separation. The Sydney based start-up was launched in 2022 by ex lawyers Andy O’Connor and Jack O’Donnell together with Craig Carroll, a fintech entrepreneur and investor.
Xilium Capital led JustFund’s $5.7M seed round financing and also provided $7M in initial debt funding. The company has now secured a new $75M senior debt facility from Global Credit Investments as well as $11M in mezzanine funding provided by various family offices. The new funding replaces Xilium’s original debt funding and will enable the company to support a rapidly growing number of clients seeking financial support. The round also included notable investments from leading Australian and international fintech investors and debt providers including Startmate, The Legal Tech Fund (USA), the impact investment firm Tripple and various members of the Australian startup scene including Dom Pym, founder of UpBank 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. 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” said Craig Carroll, Co-Founder and Executive Chairman.
The company was recently recognised as Positive Impact Fintech of the Year 2024 by FinTechAustralia. It has also been recognised as the FastStarter Fintech of the Year 2024 in the Australian FinTech Awards.
“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. Our collaboration with JustFund is an example of a type of funding that unlocks the transformational power of private credit. We are impressed with the track record of JustFund to-date and are pleased to support its rapid growth with this new debt facility” said Gavin Solsky, Co-founder, GCI Funds.
Sadly, it is estimated that more than 40% of Australian families will be affected by a divorce or separation and have to confront the daunting task of formalising the division of relationship assets. Expensive legal processes and relationship animosity often results in significant financial stress as individuals seek to finalise their separation on fair terms. JustFund’s data shows that the majority of its clients are women (almost 70%) as well as primary carers of children (74%). 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. 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” said Jack O’Donnell, Co-Founder and Co-CEO.
“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. 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” added Andy O’Connor, Co-Founder and Co-CEO.
JustFund partners with leading family law firms nationwide and has built a network of over 600 accredited law firms around Australia. To date, JustFund has approved more than $95 million in legal funding to support its clients to access more than $1 billion in relationship property settlements.
Collette McFawn, Partner and Practice Group Leader of Lander & Rogers' Family & Relationship Law group says: “As a leading Australian family law practice, it's important that we support clients with payment options and flexibility. We have found JustFund to be invaluable to our clients who may not have been able pursue their matter otherwise, or who simply prefer the flexibility to pay at the end of their matter. We have found the JustFund team to be professional, responsive and empathetic toward our clients who are managing high levels of stress along with emotional and financial challenges as part of the separation process.”
About JustFund
JustFund is a mission-driven, social lender that provides an innovative and flexible line of credit to pay legal bills, so that Australians can access legal representation when going through a marital divorce or separation. Its legal funding helps Australians to achieve a fair and equitable distribution of relationship
assets enabling them to start rebuilding their lives for a better tomorrow. The company has been awarded Positive Impact Fintech of the Year 2024 by FinTechAustralia and FastStarter Fintech of the Year 2024 by Australian FinTech.
