A company tied to Fortress Investment Group has a 20% interest in an Arizona personal injury law firm through a program that allows non-lawyer stakes in legal operations.
The previously undisclosed interest by CF ESQ Holdco in Esquire Law is revealed in an application to the Arizona Supreme Court dated Oct. 30, 2023, to renew a license for an alternative business structure. Bloomberg Law obtained the application through a public records request.
CF ESQ’s authorized signatory is Jack Neumark, who is Fortress’ president, managing partner and co-head of asset-based credit. CF ESQ’s role is the first known instance of a major investment management firm participating in a state program that allows non-lawyer ownership models for law firms.
A state website confirms CF ESQ’s application for an indirect economic interest in Esquire was approved.
Fortress is an asset-management giant that has committed billions of dollars to legal assets, typically by providing loans to law firms against their entire caseload, a growing area for litigation funders.
Esquire Law focuses on representing people injured in car accident cases, touting verdicts and settlements ranging from $400,000 to $750,000, according to its website. Esquire has recovered more than $10 million on behalf of injured Arizona plaintiffs, according to documents filed with the state.
Most state rules require lawyers to own law firms, though Arizona is among a handful of jurisdictions experimenting with alternative models, ostensibly to test whether the different structure would improve access to the legal system for people lacking wealth. Litigation funders, private equity firms, and marketing agencies have flocked to Arizona to participate in the program.
While the Fortress-tied entity has the 20% interest, Esquire is 80%, majority owned by the named partners at Steinger, Greene & Feiner, a Florida law firm, according to the application on file with the state.
Fortress didn’t immediately provide comment. Michael Steinger, Sean Greene, and Michael Feiner did not immediately respond to requests for comment.
Fortress has $53 billion in assets under management and has a dedicated arm specifically for legal assets.
The company said in 2024 it committed $6.6 billion to litigation finance. In January, Bloomberg reported that Fortress sought to raise about $1 billion for its latest litigation finance fund and would more than double the size of the prior version that closed in 2021.
The investment manager has backed law firms behind some of history’s biggest mass tort suits, such as the Roundup cases against Bayer AG and talcum powder litigation against Johnson & Johnson. It also finances other litigation funders.
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