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Ex-Fortress partner Baer’s new litigation finance vehicle Contingency Capital pairs with Tetragon fund management unit

Ex-Fortress partner Baer’s new litigation finance vehicle Contingency Capital pairs with Tetragon fund management unit

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By Hugh Leask | 07/10/2020 – 5:29pm

TFG Asset Management, the alternative investment management unit of Tetragon led by Reade Griffith, is taking a minority stake in Contingency Capital, a new litigation finance-focused fund manager founded by ex-Fortress Investment Group partner and managing director Brandon Baer.

Contingency Capital, a multi-product global asset manager which will sponsor and manage litigation finance-focused investment strategies, will formally launch on 1 November.

As part of the deal, Tetragon will place an initial USD50 million commitment with Contingency’s first commingled investment fund, as well working capital and an option to invest further amounts. TFG Asset Management will also offer operational support, including on risk management, investor relations, financial control, technology and compliance and legal matters.

“The Contingency Capital business seeks to provide access to high-quality litigation finance assets in an increasingly expanding market,” Baer said of the soon-to-launch outfit.

“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.”

TFG Asset Management CIO Griffith – who earlier established Polygon and was a founder and CEO of hedge fund giant Citadel Investment Group’s European office – pointed to “significant opportunities” in litigation finance related investing, and said exposure to the asset class is proving “very appealing.”

Meanwhile, Fortress – where Baer was a partner and managing director in credit funds, as well as the co-founder and co-head of its legal assets group – has entered into co-investment arrangements with Contingency. Fortress may invest up to USD500 million in Contingency’s opportunities.

Contingency has also entered into arrangements with a large fixed income asset manager relating to up to USD900 million of additional co-investment opportunities.

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