REG - Burford Capital Ltd - $360m Pre-Settlement Investment Fund Close

Burford CapitalAnnouncement

28/03/2022 07:00

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RNS Number : 1551G  Burford Capital Limited  28 March 2022

 

28 March 2022

 

 

BURFORD CAPITAL CLOSES NEW $360 MILLION PRIVATE INVESTMENT FUND

 

Burford Capital Limited, the leading global finance and asset management firm
focused on law, today announces that it has raised a new $360 million private
investment fund, the Burford Advantage Master Fund LP ("Advantage Fund").

 

The Advantage Fund focuses on lower risk, lower return pre-settlement
litigation investments than we include in our core legal finance portfolio,
targeting matters expected to produce returns in the 12-20% IRR range. The
Advantage Fund fills the gap between the Burford Alternative Income Fund,
which focuses on lower return post-settlement investments, and Burford's core
business.

 

The Advantage Fund has a structure that rewards Burford more than traditional
fund models for producing good performance: the fund does not have a
traditional management and performance fee structure, but instead provides the
first 10% of annual simple returns to the fund investors while Burford retains
any excess return. Based on our internal modeling, Burford does better with
this approach than a traditional "2 and 20" fee structure once its returns
exceed approximately 13%. (If the fund produces super-normal returns for this
level of risk, which is not expected, a level of sharing with fund investors
would kick in.)

 

A range of institutional investors made commitments in the aggregate amount of
$300 million. Burford has made a 20% commitment, or a further $60 million. The
Advantage Fund's investment period runs until December 24, 2024, with a
multi-year harvest period thereafter under an American waterfall.

 

Christopher Bogart, Burford Capital's chief executive officer, commented:

 

"Burford is still scratching the surface of the legal finance market. As we
continue to respond to our clients' needs, we have found unmet demand for
products in the middle range where litigation risk remains but where the risk
is anticipated to be lower for structural or other reasons. In response to
this demand, we have created the Advantage Fund to match client demand with
institutional investors seeking exposure to the uncorrelated cash flows of
legal finance at a lower risk of loss with commensurate returns."

 

 

For further information, please contact:

 

 Burford Capital Limited
 Robert Bailhache, Head of Investor Relations, EMEA and Asia - email  +44 (0)20 3530 2023
 (mailto:rbailhache@burfordcapital.com)
 Jim Ballan, Head of Investor Relations, Americas - email             +1 (646) 793 9176
 (mailto:JBallan@burfordcapital.com)

 Numis Securities Limited - NOMAD and Joint Broker                    +44 (0)20 7260 1000
 Giles Rolls
 Charlie Farquhar

 Jefferies International Limited - Joint Broker                       +44 (0)20 7029 8000
 Graham Davidson
 Tony White

 

 

About Burford Capital

Burford Capital is the leading global finance and asset management firm
focused on law. Its businesses include litigation finance
(https://www.burfordcapital.com/) and risk management, asset recovery and a
wide range of legal finance and advisory activities. Burford is publicly
traded on the New York Stock Exchange (NYSE: BUR) and the London Stock
Exchange (LSE: BUR), and it works with companies and law firms around the
world from its principal offices in New York, London, Chicago, Washington, DC,
Singapore, Sydney and Hong Kong.

 

For more information, please visit www.burfordcapital.com
(http://www.burfordcapital.com) .

 

 

This communication shall not constitute an offer to sell or the solicitation
of an offer to buy any ordinary shares or other securities of Burford.

 

This release does not constitute an offer of any Burford fund. Burford Capital
Investment Management LLC ("BCIM"), which acts as the fund manager of all
Burford funds, is registered as an investment adviser with the U.S. Securities
and Exchange Commission. The information provided herein is for informational
purposes only. Past performance is not indicative of future results. The
information contained herein is not, and should not be construed as, an offer
to sell or the solicitation of an offer to buy any securities (including,
without limitation, interests or shares in the funds). Any such offer or
solicitation may be made only by means of a final confidential private
placement memorandum and other offering documents.

 

Forward-looking statements

This announcement contains "forward-looking statements" within the meaning of
Section 21E of the US Securities Exchange Act of 1934, as amended, regarding
assumptions, expectations, projections, intentions and beliefs about future
events. These statements are intended as "forward-looking statements". In some
cases, predictive, future-tense or forward-looking words such as "aim",
"anticipate", "believe", "continue", "could", "estimate", "expect",
"forecast", "guidance", "intend", "may", "plan", "potential", "predict",
"projected", "should" or "will" or the negative of such terms or other
comparable terminology are intended to identify forward-looking statements,
but are not the exclusive means of identifying such statements. In addition,
we and our representatives may from time to time make other oral or written
statements which are forward-looking statements, including in our periodic
reports that we file with the US Securities and Exchange Commission, other
information sent to our security holders and other written materials. By their
nature, forward-looking statements involve known and unknown risks,
uncertainties and other factors because they relate to events and depend on
circumstances that may or may not occur in the future. We caution you that
forward-looking statements are not guarantees of future performance and are
based on  numerous assumptions and that our actual results of operations,
including our financial condition and liquidity and the development of the
industry in which we operate, may differ materially from (and be more negative
than) those made in, or suggested by, the forward-looking statements contained
in this announcement. Significant factors that may cause actual results to
differ from those we expect include those discussed under "Risk Factors" in
our Annual Report on Form 20-F filed with the US Securities and Exchange
Commission on March 24, 2021. In addition, even if our results of operations,
including our financial condition and liquidity and the development of the
industry in which we operate, are consistent with the forward-looking
statements contained in this announcement, those results or developments may
not be indicative of results or developments in subsequent periods.

 

Except as required by law, we undertake no obligation to update or revise the
forward-looking statements contained in this announcement, whether as a result
of new information, future events, a change in our views or expectations or
otherwise.

 

 

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