Bloomberg Law

"Investors who seek returns by funding lawsuits are adding a new twist—they are seeking social change too.

James Burnham, a former Jones Day attorney who served in President Donald Trump’s Justice Department, in July launched Vallecito Capital, a $50 million fund that will back cases supporting the conservative policy mission. TRGP Capital, a Connecticut-based litigation financier, in January announced the launch of Flashlight Capital, a separate vehicle whose goal is to “catch the confluence” between litigation finance and ESG investing, said managing director Will Zerhouni.

And Aristata Capital, a firm launched last year and partially backed by Democratic donor George Soros, has made nine investments from a $67 million fund to hold corporations accountable for environmental and human rights abuses.

“Conservative, liberal, whatever it might be, you’re seeing more capital moving into this space,” said Rob Ryan, chief executive officer at Aristata. “You’re seeing a recognition from investors that this is a incredible opportunity to generate impact and some significant returns.”

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Categories: Social Issues