Home / Finance Banking / Magnetar Capital investing $150 million in Jules Kroll litigation finance firm BlueWhite Legal Capital

Magnetar Capital investing $150 million in Jules Kroll litigation finance firm BlueWhite Legal Capital

“There are companies that have plenty of capital but choose not to use it for litigation — they would rather invest it in making a movie or digging a coal mine,” Kroll, 78, said. “If you are a general counsel at a public company, every bit of money that you spend on bringing a lawsuit goes against the company’s earnings per share.”

BlueWhite will operate on the traditional litigation finance model: covering the legal costs of plaintiff companies and receiving a percentage of any settlement. The increasingly popular structure is favored by some companies as it allows them to keep legal costs off the balance sheet. Proponents of the model believe it helps address a legal resource imbalance between the companies and their larger rivals.

The traditional legal model of hourly billing “is due for extinction” over the next decade, Kroll said. “It simply is astonishing, the amount that is billed. In the future, more and more compensation will be based on outcomes, or performance. There is going to be a sea change.”

Kroll’s partners in the venture include Aaron Rubinstein, former chairman of the litigation practice at Washington firm Kaye Scholer LLP; Earl Doppelt, a former general counsel and executive at companies including Dun Bradstreet Corp. and Nielsen Holdings Plc; and Jack Blackburn, a former banker at Citigroup Inc. and Bank of America Merrill Lynch.

BlueWhite will draw on a deep network of legal and financial experts to help identify cases most likely to yield a successful outcome, Kroll said. The company will target average initial litigation finance commitments of $5 million to $15 million.

Kroll started the modern corporate intelligence industry with his eponymous firm, Kroll Associates, in the 1970s. The company eventually went public and was later acquired by Marsh McLennan Cos. in 2004. He has since cofounded another investigations firm, K2 Intelligence, where he is currently chairman.

300-101   400-101   300-320   300-070   300-206   200-310   300-135   300-208   810-403   400-050   640-916   642-997   300-209   400-201   200-355   352-001   642-999   350-080   MB2-712   400-051   C2150-606   1Z0-434   1Z0-146   C2090-919   C9560-655   642-64   100-101   CQE   CSSLP   200-125   210-060   210-065   210-260   220-801   220-802   220-901   220-902   2V0-620   2V0-621   2V0-621D   300-075   300-115   AWS-SYSOPS   640-692   640-911   1Z0-144   1z0-434   1Z0-803   1Z0-804   000-089   000-105   70-246   70-270   70-346   70-347   70-410