Validity Finance, a litigation funding firm began in 2018 with the backing of TowerBrook Capital Companions, has raised $70 million as betting on lawsuits continues to draw buyers.
Backers within the new fund embody TowerBrook and a brand new, unnamed household workplace. The brand new funds comply with the $100 million Validity raised in July 2020 as commitments surged through the early days of the pandemic.
“Most of the greatest, most worthwhile corporations perceive the worth of non-recourse funding to assist their shoppers and their very own profitability, particularly as time horizons for monetary outcomes have stretched,” Ralph Sutton, who runs the fund, stated in a press release.
The information comes the identical month that Longford Capital stated it had raised an extra $250 million to shut a $682 million fund. Longford and Willkie Farr & Gallagher introduced a partnership earlier this yr within the first occasion of a outstanding Large Regulation agency publicly acknowledging its work with a funder.
In litigation finance, buyers pay legal professionals’ charges or bills in change for a share of a lawsuit’s potential rewards.
Validity invests in contract disputes, antitrust claims, commerce secret and misappropriation claims, insurance coverage protection circumstances and mental property issues. The corporate has dedicated practically $300 million in additional than 40 investments, it stated.
The agency has dedicated round $150 million previously 18 months, pushed by pandemic-related interruptions to courtroom dockets, Sutton stated. The corporate has reviewed greater than 1,500 funding alternatives because it launched.