Private equity and VCT firm Equistone (previously Barclays Private Equity) has sold after-the-event insurance provider Firstassist Legal Assistance for £28 million.

Private equity and VCT firm Equistone (previously Barclays Private Equity) has sold after-the-event insurance provider Firstassist Legal Assistance for £28 million.

The company has been acquired by Burford Capital which will pay an initial consideration of £10.3 million with a deferred element contingent on future performance. Burford provides capital to private firms to fund litigation.

The Firstassist Group was acquired by Equistone in 2003 for £147 million. The sale of Firstassist Legal Assistance follows Equistone’s disposal of health services provider FirstAssist Services Holdings to Capita for £12.5 million in 2010 and the sale of white-label insurance provider FirstAssist Insurance Services to Cigna for £71 million in September.

Andrew Backen, investment director at Equistone, who led the exit of Firstassist Legal Assistance says: ‘Firstassist Legal Expenses is a high quality team, well placed to capitalize on the opportunities offered as part of an international litigation funding group. Their UK expertise will be an excellent addition to Burford’s existing business.’

Firstassist, which focuses on commercial litigation, was established in 1999 and currently employs 32 people in its Croydon offices. Sir Peter Middleton (chairman of Burford Capital) will become Firstassist’s new chairman.

Peter Smith, CEO of Firstassist, is confident the acquisition by Burford will have a positive impact on his firm. He says: ‘This is an exciting development for Firstassist which brings to life our clear strategic vision for sustained future growth.

‘Acquisition by Burford provides Firstassist with a complementary product in third-party funding, for which we expect UK demand to increase.’