Longford Capital Management, a specialist in commercial litigation finance, has held the final closing of its most recent fund (including a parallel fund, Fund III), at USD682 million.
Longford’s assets under management now exceed USD1.2 billion, placing it among the largest private equity firms focused on investments in legal assets. Fund III is the third private investment fund Longford has closed since the firm began operating in 2013.
Fund III includes repeat investors from Funds I and II, as well as many new investors, attracting capital from state and municipal pension funds, university endowments, foundations, single and multi-family offices, and high-net-worth individuals. Fund III will invest in the outcomes of commercial disputes, antitrust and trade regulation claims, and intellectual property claims that Longford believes to be highly meritorious and have a strong likelihood of success. Fund III has already committed nearly USD270 million to new investments.
“Litigation funding continues to gain acceptance among law firms, their clients, and investors alike,” says Timothy S Farrell, co-founder and managing director of Longford Capital. “We have seen significant growth in interest in litigation finance from leading institutional investors and high-net-worth individuals eager to put their money to work in an uncorrelated asset class.
“The significant capital we have raised gives us the latitude to be flexible and to innovate,” he adds. “Groundbreaking agreements with top law firms – like our arrangement with Willkie Farr & Gallagher – are hallmarks of our innovative approach and how we seek to generate returns for our investors. We are grateful for our investors and our law firm and corporate partners.”
Since 2017, Longford doubled the size of its underwriting team to manage the growing demand for its capital and added several talented business executives to scale its business.
“We’ve assembled an exceptional team of former first-chair litigators from leading law firms and experienced executives from great companies, and our team is the wellspring of our success,” says Farrell. “Private practice litigators and corporate general counsel bring their matters to Longford because our team has walked in their shoes, and each member dedicates his and her thoughtful, diligent and individual attention throughout the lifespan of a matter. This will remain a key element of our culture as we continue to scale our business.”
