Pinsent Masons has formalised its relationship with litigation funder Augusta Ventures by way of a new £25 million funding facility.

Under the arrangement, Pinsents clients will receive "preferred rates", including a fast-tracked due diligence process and transparent commercial terms, the firm said in a statement.

To fund the arrangement, Augusta's managing director Louis Young said Augusta has agreed to lay out a £25 million initial facility, with the sum "likely to expand".

Under the terms of the agreement, Augusta will fund the entire cost of pursuing a claim on a "non-recourse" basis – meaning the client pays nothing if the claim fails.

Cases referred by Pinsents need to meet certain funding requirements. Young said the client must be expected to win at least 50% of the damages, and that the anticipated payout should be more than six times the sum of the costs.

Mark Roe, partner and head of international arbitration at Pinsents, said in the firm's statement that the terms provided would be considerably better than clients would typically receive from funders if they were to make an individual approach to the market.

"Often, even if clients have funds available, they prefer to invest them in their business rather than in pursuing claims," Roe said. "We wanted to address that problem."

The move by Pinsents follows Fieldfisher's announcement in May that it has devised its own litigation funding model using a combination of bank debt, firm and partner money to cover litigation costs.

Similarly, Mishcon de Reya set up its 'Protect' service 10 years ago, while Addleshaw Goddard also debuted 'Control' back in 2008, which it relaunched last year on the back of renewed interest in the market. Both services rely on third-party providers.