Tetragon Financial Group Limited To Pursue Litigation Finance Venture with Brandon Baer
Tetragon and its diversified alternative asset management business, TFG Asset Management, have entered into an agreement with Brandon Baer to invest in his newly-created company, Contingency Capital, a multi-product global asset management business that will sponsor and manage litigation finance related investment funds. Contingency Capital will have its formal launch on 1 November 2020.
Mr. Baer formerly worked at Fortress Investment Group where he was a Partner and Managing Director in the Credit Funds business. He was also the Co-Founder and Co-Head of its Legal Assets group.
TFG Asset Management will receive a significant minority equity interest in Contingency Capital and Tetragon will provide Contingency Capital with, among other things, working capital and a $50 million commitment to Contingency Capital’s first commingled investment fund, with Tetragon retaining the option to invest further amounts. TFG Asset Management, which owns majority and minority private equity stakes in asset management companies, will also provide Contingency Capital with operating infrastructure – encompassing critical business management functions such as risk management, investor relations, financial control, technology and compliance/legal matters.
Fortress and Contingency Capital have entered into co-investment arrangements pursuant to which Fortress may invest up to $500 million in Contingency Capital’s opportunities. Contingency Capital has also entered into arrangements with a large fixed income asset manager relating to up to $900 million of additional co-investment opportunities.
Reade Griffith, a Founder of Tetragon’s investment manager and the Chief Investment Officer of TFG Asset Management, commented: “We think there are significant opportunities in litigation finance related investing, and gaining exposure to this asset class is very appealing. We are also particularly excited to partner with Brandon, who is a leader in the space with extensive experience.” Stephen Prince, the Head of TFG Asset Management, noted: “We believe Brandon continues our efforts of partnering with exceptional asset managers.”
“I am excited to partner with Tetragon and its asset management platform,” said Mr. Baer. “The Contingency Capital 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. I am also pleased to be able to continue collaborating with Fortress, where I spent almost a decade focused on credit and legal assets.”
“As a significant shareholder in Tetragon and one of the largest investors in legal assets globally, Fortress is very excited to work with Tetragon and Brandon on this new opportunity,” said Jack Neumark, Head of Legal Assets at Fortress. “We have a long history of providing capital in a variety of forms to litigation finance platforms and we believe the co-investment arrangements with Contingency Capital will be another good partnership for us in this asset class.”