Virage Capital Management LP

Virage Capital Management LP primarily manages private pooled investment vehicles and a small number of fund-of-one accounts for qualified-purchaser and institutional investors. The firm provides discretionary investment management to a suite of litigation finance master-feeder funds, a Recovery Fund focused on Medicare Secondary Payer Act claims, and an Opportunity Fund that takes an equity stake in an Arizona alternative business structure (ABS) law firm; its compensation typically includes asset-based and performance-based fees.

The firm sources opportunities through the U.S. legal community and underwrites investments that are principally direct secured or unsecured loans and prepaid funding arrangements to state-bar licensed attorneys to finance litigation, evaluating borrower track record, jurisdiction, claim subject matter and defendant solvency. It also acquires and pursues MSP-related claims through a joint investment vehicle with third-party servicers and valuation agents, services securitized loan portfolios, and takes an active non-legal management role in its ABS equity investment by providing board-level oversight and operational guidance.

Virage’s structure and activities are atypical among peers because of its direct operational and economic ties to law firms: a founding principal maintains an affiliation with a law firm and the Opportunity Fund’s sole investment is an equity interest in a licensed Arizona ABS in which the firm and affiliates hold governance and economic interests. The combination of originating and servicing litigation loans, sponsoring securitizations, and investing in and managing an ABS creates client and counterparty relationships—including lending to law firms and co-counsel arrangements—that differ from the more common pooled-vehicle asset-management model.