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, to buy portions of lawsuits other funders have already invested in. The strategy is common in private equity to help monetize assets so funds can wind down and pay investors. The new fund from Gerchen Capital Partners will also buy claims that have already settled.

Secondary deals remain rare in litigation ...