Balmoral Wood raises initial $25 mln for litigation-finance fund

Balmoral Wood Litigation Finance has secured more than US$25 million ($33 million) in committed capital in the first close of its debut litigation-finance fund.

In a newsletter issued last month, the Toronto investor said Balmoral Wood Commercial Advocate Fund I held an initial close in February.

The fund, which targets emerging opportunities in the global commercial litigation-finance industry, is targeted to raise US$150 million ($200 million), PE Hub Canada reported last October. It is being marketed to a range of limited partners, including family offices, pension funds and wealthy investors.

Fund I is expected to operate like a fund-of-funds, committing capital to a select number of litigation-finance firms. It may be the first of its kind, as fundraising reports point to few, if any, examples of a multi-manager strategy focused on the global industry.

Litigation finance, or third-party funding of legal disputes in exchange for a portion of the payouts, is a comparatively new asset class. Established managers, such as Bentham, Burford Capital and Gerchen Keller Capital, have attracted considerable notice of late, as well as sizeable commitments from institutional investors.

In its newsletter, Balmoral said it will continue fundraising in the months ahead with an eye toward a second close. It also plans to begin deploying Fund I’s capital to partner firms.

Balmoral Wood is led by Principals John Fisher, David Sedgwick and Edward Truant.

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