Parabellum Capital

What Parabellum Capital does

Parabellum Capital is a New York-headquartered commercial litigation funder founded in 2012 by Howard Shams and Aaron Katz, both formerly co-founders of Credit Suisse's Legal Risk Strategies & Finance business — the first institutional commercial litigation finance operation of its kind. The firm provides non-recourse financing to three core customer segments: commercial claimants and plaintiffs (covering contract, antitrust, trade secret, fraud, bankruptcy, and qui tam/whistleblower matters), law firms ranging from AmLaw 200 to boutique practices (via portfolio financing and hedging structures), and intellectual property holders (financing patent acquisitions, global licensing campaigns, and IP litigation through Federal Circuit appeals). The firm also offers international arbitration financing. The team combines legal and financial professionals with credentials spanning Credit Suisse, Goldman Sachs, WilmerHale, Cravath, Davis Polk, the U.S. Attorney's Office (SDNY), and the U.S. Treasury.

Parabellum operates as a SEC Registered Investment Adviser and raises capital exclusively from institutional investors — endowments, foundations, public and corporate pensions, family offices, funds of funds, and alternative asset managers — through closed-end private fund vehicles (Parabellum Partners I, II, and III). Revenue is generated from management fees on committed/invested capital and carried interest on successful case outcomes, with investment structures designed to align incentives across claimholders, counsel, and the firm while preserving client control of litigation. Fund III closed at $754 million in January 2024, and cumulative commercial litigation commitments across six investment vehicles have exceeded $1.5 billion since inception.

Underlying technology includes AI-driven court-docket mining for case evaluation (referenced in Bloomberg Law), proprietary risk analytics and portfolio management infrastructure inherited and extended via the 2017 acquisition of Razor Risk Technologies, and a Director of Risk Analytics function supporting systematic underwriting. The firm does not offer consumer-facing technology and distributes exclusively through direct institutional relationships, with no public marketing or self-service channels. Industry recognition includes Band 1 rankings from Chambers & Partners for seven consecutive years through 2025, Tier 1 from The Legal 500, and individual recognition for multiple team members by Lawdragon, IAM Strategy 300, and Leaders League.

Name

Parabellum Capital

Legal name

Parabellum Capital LLC

Website

https://parabellumcap.com

Company type

Private

Founded year

2012

Operating status

Operating

Headcount range

11–50 employees

Short description

Parabellum Capital is a New York-based commercial litigation funder founded in 2012, providing non-recourse financing to plaintiffs, law firms, and IP holders through closed-end private funds, with over $1.5 billion in cumulative commitments across six investment vehicles.

Ownership category

akta.pro rank

Headquarters

HQ city

New York

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Technology or R&D, Infrastructure

Revenue model

1. Management Fees and Carried Interest from Closed-End Private Funds: Parabellum operates closed-end private funds (Parabellum Partners I, II, III) raising capital from institutional investors. The firm earns management fees on committed capital and performance fees (carried interest) on investment returns above preferred thresholds. Fund III closed at $754 million in January 2024.
2. Non-Recourse Litigation Financing: The firm provides legal spend financing and claim monetization to plaintiffs, law firms, and IP holders. Returns are generated from successful case outcomes, with investments structured to align interests and incentivize favorable results for all parties.

Pricing tiers

Go-to-market motion1 record

Distribution channels1 record

Marketing channels5 records

Core offering

Parabellum Capital provides non-recourse commercial litigation financing to plaintiffs/claimholders, law firms, and intellectual property holders. The firm raises capital from institutional investors via closed-end private funds (Parabellum Partners I, II, III) and deploys that capital to finance meritorious commercial disputes across contract, antitrust, fraud, business torts, bankruptcy, whistleblower/qui tam, and IP matters. Returns are generated from successful case outcomes, with structured investments that align incentives between claimants, counsel, and the firm.

Product overview

Parabellum Capital operates as a commercial litigation funder offering a unified platform of non-recourse financing solutions. The core offering is Commercial Litigation Funding, which provides legal spend financing and claim monetization for meritorious commercial disputes. This is complemented by specialized modules including Portfolio Financing for law firms, Intellectual Property Litigation Funding for patent disputes, and International Arbitration Financing. The firm has financed over $1.5 billion in commercial litigation commitments across six investment vehicles since its founding in 2012.

Differentiator

Problem solved

Functional benefit

Products and services

• Commercial Litigation Funding Non-recourse financing solutions for meritorious commercial disputes, providing legal spend financing and claim monetization for plaintiffs and claimants across contract, antitrust, fraud, trade secret, bankruptcy, and business tort matters.
• Portfolio Financing for Law Firms Bespoke portfolio financing and hedging solutions for law firms ranging from AmLaw 200 firms to boutique practices, with structures emphasizing alignment of incentives, transparency, and practice profitability.
• Intellectual Property Litigation Funding Non-recourse financing for complex patent acquisition transactions, global patent licensing campaigns, and IP litigation groups at law firms, covering portfolio mining through appeals before the Federal Circuit.
• International Arbitration Financing Non-recourse funding for international arbitration disputes, recognized at Band 2 by Chambers & Partners in 2025.
• Parabellum Partners III (Private Fund) Closed-end private fund vehicle that raises capital from institutional investors and deploys it into commercial litigation, IP, and arbitration finance investments. Generates management fees on committed capital and carried interest on returns.

Quantifiable outcome

• Over $1.5 billion in commercial litigation commitments across six investment vehicles as of Q2 2024
• +2 more outcomes

Named customers1 record

Segments3 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature2 records

Partnerships

One partnership is on record.

• International Legal Finance AssociationcoreOthers · 1 January 2012David Icikson serves as a director of the International Legal Finance Association (ILFA), the industry's primary trade association. This membership gives Parabellum influence over industry standards, regulatory advocacy, and market development.

Scale indicators6 records

Recent moves7 records

Expansion highlights6 records

Direct peers

• Therium Capital Management: Therium is a UK-headquartered litigation funder with a strong US and European practice, raising capital from institutional LPs. It competes for similar non-recourse commercial and IP claims and operates with a comparable closed-end fund model.
• Validity Finance: Validity Finance is a US-based commercial litigation funder targeting plaintiff claimants and law firms with non-recourse capital and portfolio financing. It competes with Parabellum in the same US commercial-dispute opportunity set.
• Calunius Capital: Calunius is a UK-based litigation funder with US activities, focusing on commercial disputes, insolvency, and IP enforcement. It overlaps with Parabellum's deal types and serves a similar institutional LP base.
• Harbour Litigation Funding: Harbour Litigation Funding is a UK/Canada-based litigation funder with growing US operations, raising closed-end funds from institutional investors. It is a direct competitor in commercial dispute and arbitration financing.
• Burford Capital: Burford Capital is the largest publicly listed commercial litigation funder globally (NYSE/LSE), with multi-billion AUM and offerings spanning commercial disputes, IP monetization, and international arbitration. It directly competes with Parabellum for large, complex matters and serves the same institutional LP base.
• Omni Bridgeway: Omni Bridgeway (ASX-listed) is a global litigation funder formed from the merger of IMF Bentham and Omni Bridgeway, with strong US, European, and Asia-Pacific operations. It is comparable in product breadth to Parabellum and competes for similar commercial, IP, and arbitration matters.
• Vannin Capital: Vannin Capital is a global litigation funder (now owned by Fortress) operating across the US, UK, and Europe with comparable deal sizes and case types. It is a direct competitor for institutional-grade commercial litigation and arbitration mandates.
• Litigation Services Group (LSG): LSG is a US litigation funder providing single-case and portfolio financing to plaintiffs and law firms. It is comparable to Parabellum in targeting US commercial disputes with non-recourse structures and institutional capital.
• Longford Capital Management: Longford Capital is a US-focused litigation funder and portfolio financing specialist serving AmLaw firms and commercial claimants. It is closely comparable to Parabellum on US-focused commercial litigation and law firm portfolio financing.

Broad incumbents

• Fortress Investment Group: Fortress is a large alternative asset manager that owns Vannin Capital and deploys litigation capital as part of a wider alternatives portfolio. While not solely a litigation funder, its Vannin subsidiary competes head-to-head with Parabellum for marquee matters.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat6 records

Key risks6 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/parabellum-capital

Revenue estimate

Valuation estimate

Number of profiles

Profiles17 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A1 record

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Parabellum Capital