Litigation Funder Vannin Sold to Fortress Investment Group

Funds managed by New York-based private equity firm Fortress Capital Management are acquiring global litigation financier Vannin Capital.

The sale to Fortress, expected to close late this month, will be a liquidity event for Bramden Investments, a private equity firm that funded Vannin’s launch and was its majority owner. Fortress, which is purchasing 100% of the funder, has previously been an active investor in the litigation finance market. Terms of the deal were not disclosed.

Vannin Capital, launched in 2010, is one of a growing number of firms providing third-party financing for disputes. Vannin had previously announced it would pursue a public stock offering, but scrapped those plans in October 2018.

“Vannin has been a leading investor and innovator in the litigation finance space, and we’ve enjoyed our partnership to date” Gordon Runté of Fortress said in a statement on the deal. “We believe this acquisition is a logical next step and natural fit for our business, and it will complement the breadth of our relationships and leadership in the space.”

The Financial Times first reported the sale, and said Vannin chief executive Richard Hextall and finance chief David Collins will leave the company after closing.

The sale comes as industry leading litigation funder Burford Capital continues to respond to questions about its accounting practices. Burford has seen its share price fall by more than half since late July.

Vannin has offices in London, Paris, Australia, New York and Germany. The company last year hired Scott Mozarsky as regional managing director for North America. Mozarsky is a former president of Bloomberg Law.