Litigation Finance Pioneers Return to Hunt Rare Secondary Deals

Six years after Adam Gerchen and Ashley Keller sold their litigation finance company for roughly $160 million, they’re back with a new plan: Buying up pieces of lawsuits from their old competitors. The pair’s new venture has raised $750 million for the first litigation fund aimed at secondary transactions. Gerchen’s new fund has deployed about $225 million, and one of its deals became public for the first time last week. It purchased a 30% claim from Omni Bridgeway in an Australian class action over “combustible cladding,” building materials prone to catch fire. Gerchen Capital paid $19.5 million, generating a $16 million profit for Omni Bridgeway, according to a regulatory filing.

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In the News

UK litigation funders’ war chests grow as class action interest mounts

UK-based litigation funders have amassed record war chests to finance the growing interest in class action law suits, according to a new study by RPC. Litigation funders’ assets jumped 11% last year to hit £2.2bn, almost double the £1.3bn that had been built up in 2017/18 and a more than ten-fold increase over the past decade. RPC’s analysis is based on regulatory data submitted by 15 of the largest UK litigation funders. Raymond van Hulst, EMEA executive director of Omni Bridgeway notes, however, that while low interest rates and excess liquidity had previously driven growth, a combination of rising inflation and higher interest rates means only the most successful funds will likely be attractive going forward and funders with low success rates will struggle.

Funder News

Omni Bridgeway appoints new Global Head of Portfolio Management

Mark Wells has joined Omni Bridgeway in London as Global Head of Portfolio Management. Before joining Omni Bridgeway, he co-founded litigation funder Calunius Capital in 2006 where he was Managing Partner. Previously, Mark spent nearly two decades in derivatives trading and structuring at major banking institutions including JPMorgan/Chase and Toronto Dominion. Mark will be responsible for further developing Omni Bridgeway’s global fund and capital management strategy and head the global pricing and financial structuring team.

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