Bloomberg article here.
You can learn a lot about an investor when he sues someone or gets sued. A lot is revealed through discovery and depositions and testimony. It will probably become a bigger part of money manager due diligence, at least in the world of private equity.
The other thing to examine, as the article mentions in passing, is the use of the lawsuit as a tactical or strategic instrument, as itself a type of investment. To pursue a civil lawsuit requires an outlay of money, time, effort, and reputation in the hope of achieving some monetary reward. A large corporate lawsuit can rival a good-sized PE acquisition in terms of the financial and human resources required. Each lawsuit has its own prospective risk-adjusted return which can be evaluated (some even do it professionally), and when a professional investor like Terra Firma sues someone, that lawsuit becomes another portfolio asset and a subject of due diligence.
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