A dozen former employees, investors in the fund, and other people close to the matter describe an investment firm in disarray. Seven years ago, a smooth-talking associate of Peter Thiel promised that he had launched the “capstone” to Thiel’s investment empire, naming their new firm after a mythical metal in Lord of the Rings because it was flashy yet permanent. “It’s invaluable,” leader Ajay Royan told one interviewer about Mithril Capital. “It’s lifesaving. It’s sustainable.