(Reuters) - Insurance provider Thomas Miller Group and its litigation insurance broker subsidiary TheJudge Group on Wednesday announced the launch of Erso Capital, a new fund that will invest in litigation and arbitration finance globally.

Erso, which has offices in the U.S., UK and the Isle of Man, has access to more than $1 billion in capital between discretionary funds, single managed accounts and co-investment funds, the firm said in its announcement.

"We see Erso as a next generation litigation funder," James Delaney a co-founder and director of the fund, said in a statement.

Thomas Miller completed its acquisition of TheJudge in November 2019, according to an annual report from the insurer, but the deal was not previously announced, Delaney said in an email.

Delaney will lead the fund with Matthew Amey and James Blick. The trio were directors and former owners of TheJudge.

"We have the capital resources and appetite to consider a very broad spectrum of commercial disputes, while also being adaptable to seamlessly work alongside the other risk management tools available via TheJudge, including contingency fee insurance," Delaney said.

Highlighting its "substantial institutional investors," Erso said the fund will consider opportunities ranging from $200,000 to more than $200 million. The fund will invest in single-case commercial disputes, law firms, award monetization and corporate portfolio solutions, according to its website, which went live a few weeks ago.

Hughes Hubbard & Reed advised on Erso's formation in the United States. Offshore law firm Appleby advised on the company's establishment in the Isle of Man, the company said.

In an announcement on its website dated Feb. 1, Erso said that former Hughes Hubbard associate Caroline Parker-Beaudrias had joined the fund as an investment counsel. There are seven other members of the Erso team listed on its website in addition to her and the three co-founders.

The use of third-party litigation finance has been growing in the past several years. In a sign of the industry's maturity, several big litigation finance firms, including Burford Capital, Omni Bridgeway and Woodsford Litigation Funding came together last year to form the International Legal Finance Association.

There have also been several new players pop up in the past few years, including Contingency Capital, which made its debut in November.

"The current economic environment has fueled an already strong demand for litigation finance from law firms and corporate clients," Parker-Beaudrias said in a statement. "Managing cashflow and maintaining liquidity are going to be key for many businesses through 2021 and outside litigation finance has an important role to play."