Sean Coffey, the former securities-class-action heavyweight, has found a new calling in the wake of his unsuccessful campaign to become New York’s attorney general: funding other people’s litigation.

Mr. Coffey, who left Bernstein Litowitz Berger & Grossmann in October 2009 to run for office, has co-founded BlackRobe Capital, a New York-based investment management firm that invests in litigation. He is partnering with Timothy Scrantom, co-founder of the first publicly traded litigation funder in the United States, Juridica Investments Ltd.