THE WORLD'S biggest fund that invests in lawsuits will open an office in Dublin to finance litigation in Europe and benefit from an increase in lawsuits arising from the global credit crunch.

IMF Australia, which is based in Sydney, will back lawsuits against cartels in return for a percentage of any court award or settlement, according to the company's managing director John Walker.

Mr Walker is listed as a director of a new Irish public limited company called Claims Funding International, which was incorporated on April 2nd and has a registered address in Howth, Co Dublin.

IMF seeks up to 30 per cent of damages or settlement of a case in which it invests. Its income from litigation in 2007 was 23.2 million Australian dollars (€13.6 million), according to the company's data.

Lawyers expect growth in class action and shareholder lawsuits due to the EU's stance on antitrust cases and the credit crisis.

"It's a good time for IMF to set up," said Sonya Leydecker, head of litigation at London law firm Herbert Smith, whose clients have used third-party funds. "The market has changed and there's more appetite for litigation."

The European Union published a paper this month encouraging the public and businesses to sue illegal cartels. Shareholders of British bank Northern Rock are preparing to sue the UK government over the nationalised lender, which was the first bank to suffer a run on its deposits in 140 years.

While IMF's initial focus will be on antitrust cases, the credit crisis will provide ongoing opportunities, Mr Walker said. "We think the credit crunch and litigation arising from credit default swaps will rise," he said. - ( Additional reporting, Bloomberg )