January 19, 2020

Permentum Capital Forms in Order to Provide Streamlined Litigation-Finance Solutions

Permentum Capital is a new litigation-finance firm that seeks to provide a simpler menu of commercial-dispute funding solutions to corporations, law firms, and asset owners.

Permentum Capital LLC (“Permentum” or “the Company”), a privately-held litigation-finance firm announced its company launch. Experienced professionals formerly with Burford Capital and Skadden have teamed up to bring a fresh approach to litigation finance, one that simplifies the relationship between the funder and its counterparties. The Company will focus on providing finance solutions for commercial disputes and purchasing assets where a legal outcome will be a significant driver of value. Permentum will explore opportunities globally, with a heavy focus on legal disputes in the United States.

Permentum is a combination of the words “permanent” and “momentum.” The name captures a company that will always be moving forward, both in terms of responsiveness to counterparties as well as adopting new and innovative techniques for evaluating legal risk.

Permentum aims to be a true financial partner, aligning the Company’s interests as closely as possible with the interests of its counterparties. Permentum will have a strong preference for equity-like arrangements where proceeds with be shared with counterparties according to a simple percentage formula. Permentum will take a holistic approach to quantitatively assessing the value of legal claim assets. To that end, Permentum will have no minimum investment amounts like many of the incumbent litigation finance providers require when assessing new opportunities.

Litigation finance is the transformation of cash flows where the ultimate payouts will result from a legal outcome. While it can take many forms, the typical arrangement involves providing capital to pay for the costs of pursuing a legal claim (law firm fees, experts, any court costs) in return for a share of the proceeds generated by that case.

“The dawning of a new decade brings the opportunity to reflect on the progress the then-nascent industry has made in the last ten years, and also to recalibrate and introduce a more user-friendly approach to litigation finance,” said Founder and CEO Max Egan.

In the coming months, Permentum intends to raise capital through the establishment of private investment funds, decide on the best strategic location for its United States headquarters, and recruit a team of professionals.

Permentum Capital is a litigation-finance firm that launched in January 2020. Founder and CEO Max Egan has been actively deploying capital in litigation finance since 2013. Most recently, Max was a Senior Vice President at Burford Capital and prior to that, a Vice President at Morgan Stanley. Senior Advisor Douglas B. Adler is a retired partner of the law firm Skadden, Arps, Slate, Meagher & Flom LLP, with more than 30 years' experience in trial and appellate court proceedings. Doug also currently serves as a Senior Advisor and Litigation Consultant at the legal technology firm Gavelytics.