Longford Capital Raises $500M For Second Litigation Finance Fund

Commercial litigation finance specialist Longford Capital Management has raised $500 million in capital commitments for its second fund to focus on investments in the niche. 

The capital raise makes the new fund, named Longford Capital Fund II, LP the largest private equity fund of its kind in North America, the company said in a statement. It will invest in the outcomes of commercial legal claims Longford believes to be highly meritorious and have a strong likelihood of success. 

Fund II has already committed nearly $100 million to new investments, the statement added. The new fund’s LP advisory committee will consist of five investment management industry leaders who are also investors, including:

• John Beirne, Jr., founding partner and CIO of Beirne Wealth Consulting Services. 
• Michael Bills, founder and CIO of Bluestem Asset Management, former CIO of the University of Virginia Investment Management Company and former COO of Tiger Management.
• T. Bondurant French, executive chairman of Adams Street Partners. 
• Edward Liddy, former CEO of The Allstate Corporation.
• Jeffrey Vinik, former manager of the Fidelity Magellan Fund.

“The demand for litigation finance by leading law firms, public and private companies, universities, and a variety of other entities involved in complex, commercial litigation continues to grow at a rapid pace,” said William Strong, chairman and managing director of Longford Capital, in the statement. “The enthusiasm for litigation finance is growing among the investor community; during the fundraising process for Fund II, we were pleased to attract more than $1 billion of interest from numerous sophisticated and experienced investors.” 

Based in Chicago, Longford Capital provides capital to leading law firms, public and private companies, universities, government agencies, and other entities involved in large-scale, commercial legal disputes. The company typically funds attorneys’ fees and other costs necessary to pursue meritorious legal claims in return for a share of a favorable settlement or award, and has developed considerable expertise in claims related to business-to-business contracts, antitrust/trade, intellectual property, fiduciary duty, fraud, bankruptcy, and arbitration.