Rocade launched as a specialty finance company focused on litigation finance with a long-term investment approach, in partnership with Barings, an investment manager.
Under the terms of the transaction, funds affiliated with Barings have made a significant equity investment into the company. EJF Capital, which launched Rocade’s predecessor vehicle, Rocade Capital in 2014 with a highly skilled management team, will support the platform and remain a material shareholder in the newly formed entity alongside management, which will transition to the company.
Headquartered in the Washington, D.C. area, Rocade provides flexible law firm financing solutions, with facilities ranging in size from $10 million to more than $100 million which are secured by contingent fees receivable or other litigation assets. Under this new organizational structure, Rocade will benefit from having a robust and patient capital base backed by Barings, enabling it to provide flexible, long-term capital solutions to growing law firms, while leveraging the team’s combination of deep sector expertise and financial structuring capabilities.
“Uniting with Barings in our vision for a permanent capital vehicle is an incredible milestone for Rocade, as this long-term investment horizon sets us apart and will meaningfully enhance our alignment with the firms in which we invest,” Brian Roth, CEO and chief investment officer of Rocade, said. “The strength of our combined experience and expanded financial resources empowers us with scale and flexibility to continue our trajectory as a leading litigation credit provider in the rapidly evolving litigation finance industry.”
“We are thrilled to partner with Rocade to cement its status as a leading litigation finance provider,” Bryan High, head of capital solutions at Barings, said. “Brian and the outstanding team of professionals at Rocade have built a best-in-class, technology-enabled platform that meets the needs of many law firms as they navigate increasingly complex litigation. Rocade’s deep relationships, strong credit culture, and market-leading expertise powerfully complement Barings’ permanent capital base and long-term investment approach.”
“This expanded capital base allows us to scale our platform more quickly while maintaining our focus on asset quality,” Jacob Cantrell, chief risk officer of Rocade, said. “Our core team, process and product will remain the same while we continue to invest in technology to improve our decision process and drive efficiency. Adding the strength, diversity and scale of resources available across the Barings private credit team to these core strategies offers Rocade more long-term flexibility and reliability for our law firm partners.”
“We are pleased to participate in the continued success of Brian and his team, who have built a terrific platform that has differentiated itself through an institutional approach to a niche asset class and a data-driven process for understanding complex situations,” Emanuel Friedman, co-founder and co-CEO of EJF Capital, said. “I look forward to partnering with an innovative and dynamic capital partner in Barings, and I am confident that Rocade is well positioned for a highly successful next chapter with a renewed focus on becoming a dominant player in the space over the long-term.”
Fried, Frank, Harris, Shriver & Jacobson served as legal advisor to EJF Capital. Dechert served as legal advisor to Barings. Nixon Peabody and Cooley served as legal advisor to Rocade and management.