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Aperture Investors Hires Luke Darkow to Launch Litigation Finance Strategy 

September 10, 2024

Aperture Investors Hires Luke Darkow to Launch Litigation Finance Strategy 

Aperture Investors, an alternative asset manager and part of the Generali Investments platform, today announced that Luke Darkow has joined the firm to lead its new private credit Litigation Finance strategy. 

Darkow joins Aperture from Victory Park Capital, a global alternative investment manager, where he was a Principal and Portfolio Manager responsible for sourcing, analyzing, executing, and managing investments within the litigation finance asset class. Prior to Victory Park Capital, Darkow held roles at TPG Capital and Morgan Stanley. 

“With Aperture entering its next phase of growth, we see significant potential in specialty lending, particularly in litigation finance, which we believe remains a relatively underbanked asset class. Estimates suggest that the litigation finance market could double annually through 2035,” said Peter Kraus, Chief Executive Officer and Founder, Aperture Investors. “Litigation Finance is a niche, relationship-driven sector—and Luke is no tourist. His expertise in both private and public debt investments, his deep network of law firms and legal service providers, and his ability to source opportunities and raise capital will allow us to build out this unique offering at Aperture.”

Litigation Finance involves the provision of third-party capital to help finance law firms or plaintiffs pursuing legal claims in exchange for, or collateralized by, a percentage of proceeds received upon the successful resolution of legal disputes. Aperture’s Litigation Finance strategy will primarily provide structured loans to law firms backed by expected legal fee receivables from procedurally mature, settled, and/or short duration legal cases, targeting uncorrelated returns.

“I’m incredibly pleased to join Aperture and help drive the firm into new opportunities in private credit with this niche, asset-based lending strategy,” commented Darkow. “As Aperture expands its slate of strategies and products, I’m also attracted to the intellectual horsepower and best-in-class infrastructure within the broader firm.” 

About Aperture Investors 

Aperture is an alternative asset management firm offering credit and equity strategies in commingled and bespoke portfolios for institutional investors. Aperture’s mission is outperformance, and it is focused on identifying portfolio managers who it believes have a unique edge and can consistently deliver innovative, solutions-oriented investment results throughout market cycles. Since inception, Aperture has steadily grown its breadth of products, and as of August 31st, it manages approximately $4 billion. Its investment strategies are diversified across asset classes and geographies – each managed by a dedicated investment team – with distribution across North America, Europe, Middle East and Asia. 

Aperture Investors was founded in 2018 and is led by industry veteran Peter Kraus and by Generali, one of the largest global insurance and asset management providers. For more about Aperture, visit us at www.apertureinvestors.com.

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California Targets Litigation Funding with New Regulations

By John Freund |

California lawmakers are pursuing new regulations aimed at the litigation funding industry, adding the state to a growing list of jurisdictions seeking to impose oversight on third-party funding practices.

As reported by the Daily Journal, California legislators have introduced measures that would bring increased transparency and regulatory scrutiny to the litigation funding sector. The move comes as states across the country grapple with how to regulate an industry that has grown rapidly in recent years.

The proposed regulations reflect broader national momentum toward litigation funding oversight. Several states have already enacted or proposed disclosure requirements and other regulatory frameworks, while federal legislation including the Litigation Funding Transparency Act of 2026 remains under debate in Congress.

California's entry into the regulatory conversation is significant given the state's outsized role in the U.S. legal market. As one of the largest jurisdictions for both consumer and commercial litigation, any regulatory framework adopted in California could serve as a model for other states considering similar measures.

The development adds to an increasingly active regulatory landscape for litigation funders, who face growing calls for transparency from lawmakers, courts, and industry groups alike.

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Australian Court Rules Against Litigation Capital Management Client

By John Freund |

Litigation Capital Management saw its shares decline after an Australian court delivered an unfavorable judgment against one of its funded clients in a commercial dispute.

As reported by Sharecast, LCM had invested A$1.4 million of shareholder capital in what it described as a "small case investment." The company confirmed that the court found against its funded party, sending shares down approximately 6.5% in early trading.

LCM stated that it has after-the-event insurance in place to mitigate adverse cost risks associated with the ruling. The firm is currently reassessing the judgment alongside its legal representatives and the funded party, and is exploring potential next steps including the possibility of an appeal.

The outcome highlights the inherent risk-reward dynamics of the litigation funding model. While funders conduct extensive due diligence before committing capital, court outcomes remain uncertain. ATE insurance policies, which cover legal costs and disbursements if claimants lose their cases, serve as a protective measure against precisely this type of result.

LCM, which operates as a dispute financing solutions firm focused on commercial litigation, continues to manage a broader portfolio of funded cases across multiple jurisdictions.

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Arbitration Finance Moves Into the Mainstream for Mining Disputes, Says Burford Capital

By John Freund |

Third-party arbitration financing has evolved from a niche practice into a mainstream strategic tool for mining companies facing international disputes, according to a senior Burford Capital director.

As reported by The Northern Miner, Burford Capital Director Jeffery Commission outlined how the sector has matured significantly. Commission noted that international arbitrations are "increasingly expensive," with average spend reaching at least $5 million and cases typically spanning three to five years.

The mining industry has been at the forefront of litigation funding adoption. Some of the earliest funded cases involved mining disputes, with Canadian junior mining companies pursuing claims against Latin American governments proving especially successful. Data shows rising numbers of mining-related disputes across major arbitration institutions including ICSID and the International Chamber of Commerce.

Burford's selection process remains highly rigorous — the firm rejects approximately 95% of claims it reviews. Key evaluation criteria include claimants' track records, project advancement stages, and respondent countries' histories of honoring arbitral awards.

Beyond cost-pressured junior miners, well-capitalized companies are now using arbitration finance strategically to monetize existing awards and deploy freed-up capital into core mining operations.