This is a follow-up update regarding the Nera litigation-funding portfolio on Mintos.
For background information about the payment delays, the structure of the Notes, and details of the ongoing SRA review, please refer to our previous update from May 22, 2026.
The first larger principal repayment due on May 20, 2026, remains outstanding, and no principal repayments have been received since the last update.
As previously communicated, repayment of the Notes depends on the completion and settlement of consumer claim cases funded by the law firms. The resolution of these underlying legal claims continues to take longer than initially anticipated, resulting in further delays to the cash inflows required for principal repayments. In litigation financing, extended case timelines are not uncommon.
We have been in contact with Nera and another significant funder and are currently discussing potential solutions regarding the current payment delays. We remain engaged with the relevant parties and will provide updates as discussions progress.
At the same time, we have reached out to the external law firms that received funding from Nera to better understand the situation and discuss potential legal avenues. So far, they have declined to engage with us directly, citing the absence of a direct contractual relationship. Nevertheless, we will continue pursuing these discussions and exploring all available options to ensure that investors’ interests are appropriately represented and protected.
Regarding delayed payments, please note that late interest is not accrued during the initial borrower payment delay period of up to 60 days. If the payment remains overdue after this period, Nera is required to repurchase the affected loans under the buyback obligation. At that point, the loans move to Pending Payments status, and interest on the delayed amount starts accruing in line with the applicable agreements. This interest will be paid together with the outstanding amount once the funds are recovered.
The affected payments are currently in different stages of the process. Some interest and principal payments are already more than 60 days overdue and have moved to Pending Payments status, meaning that Pending Payment Interest is being accrued. At the same time, some payments became due in April, which are still within the initial borrower payment delay period. For these payments, late interest has not yet been accrued.
As for the Solicitors Regulation Authority (SRA) review, there have been no material developments since our previous update. We will provide further information as soon as there is meaningful progress to report.
Frequently asked investor questions
1. Is SRA review a temporary administrative issue or a more serious concern?
Any review by an authority shall be taken seriously. We have been informed that the review is part of an industry-wide solvency review of legal firms, not any other wrongdoing. Nevertheless, it is up to the SRA to make its conclusion and potential resolution of the review.
2. Other litigation funders have said they are not affected by the SRA review. How can it be industry-wide?
The SRA review covers a defined set of UK law firms with high-volume consumer-claim caseloads, not the litigation finance sector as a whole. Other funders whose lending model or borrower base is different may not be affected. Our update reflects the situation specifically for the law firms funded through Nera Notes.
3. Is the SRA investigation limited to UK loans?
Yes. Based on current information, the regulatory review is limited to UK-related lending and litigation funding activities.
4. When will payments resume?
There is currently no defined timeline for payment resumption. Resumption of payments depends on the regulatory review being concluded and normal servicing being restored. This timing is uncertain.
5. Will principal not due yet be repaid on time when Notes mature?
Based on information provided by Nera Capital and the nature of litigation funding assets, there is a material likelihood that case resolutions will extend beyond original Nera Note maturities. This is a known structural characteristic of litigation finance, where recovery timing is dependent on court processes, settlements, and enforcement actions.
As a result, principal repayment at maturity cannot be guaranteed in the current circumstances and most likely will be delayed.
6. Can Nera Notes on Mintos be sold on the Secondary Market?
Yes. Investors can list and trade eligible Notes, i.e., Notes that are not in pending payments or overdue, on the Secondary Market, subject to standard platform liquidity and demand conditions.
7. Why is the overdue amount increasing?
Because scheduled repayments are currently not being received on time, amounts that would normally be repaid to investors remain outstanding and accumulate as overdue payments.
8. Do the missed payments mean the investments are lost?
No, currently, such a conclusion cannot be drawn. The delays to Note holders reflect delayed expected cash flows from the resolution of underlying claims and SRA review.
9. Is interest still being calculated on delayed payments?
Interest is not accrued during the initial borrower payment delay period of up to 60 days. Once the 60-day period elapses, the buyback obligation is triggered, and the loans move to Pending Payments status. From that point, interest on the delayed amount (Pending Payment Interest) starts accruing in accordance with the applicable agreements and remains payable together with the outstanding amount.
Final note
We understand that uncertainty and limited visibility can be frustrating, especially in an asset class where timing is inherently linked to legal and regulatory processes.
We will continue to work on the situation closely and provide updates as soon as new, substantial information becomes available or at a minimum every two weeks, even if there is nothing material to report. We will also post each update in the community thread.
For transparency and consistency, we will avoid speculation and focus on confirmed developments as they arise.