This emerging finance sector will experience significant growth. From an asset class development perspective, litigation finance today is where private equity was in the early 1980s… Few, if any, litigation finance firms have the combination of litigation, business, and finance talent that Longford Capital offers.”
Who said it: William H. Strong, chairman of Longford Capital and former Morgan Stanley Global Management Committee member, and co-CEO Morgan Stanley Asia Pacific Region
In Context: Bill Strong is quoted here talking about Longford Capital, a company he just joined this month. Longford is a trailblazer in the US for a new type private equity investment segment, which backs promising lawsuits, accompanying claims to conclusion, staking its fund’s millions on a favorable outcome. In its own words Longford Capital says it makes equity investments in meritorious, business-to-business legal claims with USD 25 million to more than USD 1 billion in controversy. Typically, it funds attorneys’ fees and other costs necessary to pursue claims in return for a share of a favorable settlement or award. It can invest in business-to-business contract claims, antitrust and trade regulation claims, intellectual property claims (including patent, trademark, copyright, and trade secret), fiduciary duty claims, fraud claims, claims in bankruptcy and liquidation, domestic and international arbitrations, and a variety of others.
It’s one of PE’s new areas of specialization and niches are seen as a success factor these days, as this Forbes article makes clear. The demand for litigation finance is growing and is already established in the UK and Australia. The US market for this type of finance began less than five years ago, according to Longford. (Image source: National University of Singapore)
Where we found it: Longford Press Release