A New York investment manager with assets of $40bn (£32 bn) has defied uncertainty about the litigation financing market by acquiring funder Vannin Capital. Vannin, set up in 2010, last year abandoned plans to list on the London Stock Exchange, citing volatility in global markets.
Privately held Fortress Investment Group said today it will acquire 100% of the equity in Vannin from existing shareholders. These include majority owner Bramden Investments, a private equity vehicle funded by Isle of Man-based DLA Group. The acquisition is expected to complete later this month. No financial details were disclosed.
The future of the overall litigation funding market has been stalked by uncertainty over the past month since a critical analyst's report sent shares in London-listed Burford Capital tumbling. Vannin had intended to list on the London market in October last year but, on cancelling the plan, announced that it was in no hurry to secure new capital.
In a statement today, Dan Craddock, founder of Bramden, said: 'We are pleased to announce the sale of our interests in Vannin Capital to Fortress Investment Group. Over the last few months, as we evaluated how best to accelerate future growth, we have received several offers for the business. Fortress represented the strongest choice in all respects, not least due to its established position in the market and its long-standing relationship with Vannin.'
Gordon Runté, managing director of Fortress, said: 'Vannin has been a leading investor and innovator in the litigation finance space, and we’ve enjoyed our partnership to date. 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.'