Former Fortress Investment Group partner Brandon Baer has launched a litigation finance company with $1.5 billion of commitments.
The company, Contingency Capital, has also agreed to sell a minority stake to TFG Asset Management, which will provide working capital, operating infrastructure and a $50 million commitment to the firm’s first commingled investment fund.
Contingency will formally launch on 1 November and sponsor and manage litigation finance related investment funds.
Baer was formerly partner and managing director of credit funds at Fortress and was the co-founder and co-head of its legal assets group. Fortress has also entered into an agreement with Contingency for co-investments of up to $500 million. Additionally, Contingency has agreed to up to $900 million of co-investment opportunities with an unnamed fixed income asset manager.
The TFG agreement will see it provide infrastructure to Contingency Capital including risk management, investor relations, financial control, technology and assistance with compliance and legal matters.
Commenting on the launch of Contingency Capital, Baer said: “The … business seeks to provide access to high-quality litigation finance assets in an increasingly expanding market. Our focus will be on investments whose primary outcomes are driven by legal, tax or regulatory processes and are intended to be generally uncorrelated to the markets.”
Reade Griffith, chief investment officer at TFG Asset Management, added: “We think there are significant opportunities in litigation finance related investing and gaining exposure to this asset class is very appealing.”