Soros-Backed Litigation Funder Targets Climate, Social Change - Bloomberg Law
Soros-Backed Litigation Funder Targets Climate, Social Change
A George Soros-backed litigation funder that focuses on driving social and environmental change closed on its first fund for about $67.2 million (£52 million).
Aristata Capital Ltd, based in London, describes itself as the first litigation funder of its kind, as it finances lawsuits that aim to deliver systemic change and empower marginalized voices. The portfolio, anchored by money from Capricorn Investment Group, will target issues globally, including environmental protection, climate change, indigenous rights and human rights.
“Access to justice and leveling the playing field and fairness are absolutely at the core of what we are trying to do,” said Robert Ryan, Aristata’s chief executive officer.
Litigation finance is a $13.5 billion industry in which outside investors pool money into lawsuits in exchange for a portion of any award that results from cases. Funds range in size from around around $25 million on the smaller end to more than $250 million.
Capricorn’s Sustainable Investors Fund contributed around $12.9 million (£10 million ) to Aristata, and The Soros Economic Development Fund also added $6.4 million (£5 million). Other investors include private companies that manage investments for wealthy families, foundation endowments and high net worth individuals. Investors will not be involved in decision making, Ryan said.
“Being impact-focused so far has been a real advantage and has been a real differentiator as we’ve been out working alongside and in competition with other mainstream litigation firms,” Ryan said. “We’re a new offering, which makes us interesting.”
Ryan said he isn’t concerned that Aristata is backed by Soros, a major supporter of liberal causes and of Democratic politicians who is a target of criticism by conservatives. Soros’s fund is aligned with Aristata’s mission, he said.
Though the types of cases Aristata wants to fund can touch on hot-button issues—including fighting climate change and discrimination—Ryan said the fund will stay away from cases directly involving politics such as election reform or lawsuits supporting a particular party.
“We try to avoid cases that are overtly political in nature,” he said.
Ryan’s background is in advising philanthropies. He was previously the founding team member of Client Earth, a public interest environmental law group, and he also worked with the Children’s Investment Fund Foundation. Aristata’s Chief Investment Officer, Jack Naylor, worked at Freshfields and then on the global litigation team at PricewaterhouseCoopers.
There is a three-year window to deploy capital, and Ryan said he anticipates funding around 20 cases, with seven to eight investments live by the end of the summer. The fund said it has already resolved one case successfully. Ryan declined to provide specifics about the case but said it involved human rights abuses.
To contact the reporter on this story: esiegel@bloombergindustry.com
To contact the editors responsible for this story: copfer@bloombergindustry.com; jhughes@bloombergindustry.com; arafferty@bloombergindustry.com
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”