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Ralph Sutton Launches Validity Finance

Ralph Sutton, formerly chief investment officer of Bentham IMF, has announced the formation of new litigation finance vehicle Validity Finance to provide businesses, law firms and individuals with non-recourse funding for a wide variety of commercial litigation.

Validity’s backers have committed up to $250 million of capital to the new business. The company is anchored by a majority commitment from New York and London-based private equity firm TowerBrook Capital Partners, through its Structured Opportunities Fund.

Sutton sees Validity as the next stage in the development of litigation funding, commenting “In the dozen years since I started in the business, our industry has evolved from a novel, disruptive idea to an accepted business model, drawing a large pool of sophisticated funders. Major law firms now embrace legal finance to stay competitive, boost profits, and better serve clients.”

“We’re entering a new wave of funding, where capital and legal expertise combine to help solve legal problems on behalf of clients, including law firms with whom we partner,” he added. “What will matter in this new wave – and what will make our industry sustainable – is fairness in funding. At Validity, our mission is to make a meaningful difference in the legal system by focusing on client needs, both in the investment process and in the results.”