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New litigation funding firm launches

A veteran of litigation finance has launched a well-capitalised company with a commitment to elevate fairness and client objectives in financing commercial and business legal disputes.

Ralph Sutton, formerly chief investment officer of Bentham IMF, has formed Validity Finance to provide businesses, law firms and individuals with non-recourse funding for a wide variety of commercial litigation.
 
Validity’s backers have committed up to USD250 million of capital to the new business. The company is anchored by a majority commitment from New York and London-based private equity firm TowerBrook Capital Partners, through its Structured Opportunities Fund.
 
Sutton sees Validity as the next stage in the development of litigation funding, commenting “In the dozen years since I started in the business, our industry has evolved from a novel, disruptive idea to an accepted business model, drawing a large pool of sophisticated funders. Major law firms now embrace legal finance to stay competitive, boost profits, and better serve clients.”
 
“We’re entering a new wave of funding, where capital and legal expertise combine to help solve legal problems on behalf of clients, including law firms with whom we partner,” he adds. “What will matter in this new wave – and what will make our industry sustainable – is fairness in funding. At Validity, our mission is to make a meaningful difference in the legal system by focusing on client needs, both in the investment process and in the results.”
 
The new company is based in New York, with offices and staff in Houston and Chicago. Offices in other major markets are expected to follow soon.

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