Burford Capital Limited Announces Closing of $360 Million Pre-Settlement Investment Fund


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GUERNSEY / ACCESSWIRE / March 28, 2022 / Burford Capital Limited (NYSE:BUR)(LSE:BUR), the leading global law-focused finance and asset management company, today announces that it has raised a new $360 private equity fund million dollars, the Burford Advantage Master Fund LP (“Advantage Fund”).

The Advantage Fund focuses on lower risk, lower return pre-settlement litigation investments than those we include in our core legal funding portfolio, targeting cases expected to produce returns in the range of 12 to 20% IRR. The Advantage Fund bridges the gap between the Burford Alternative Income Fund, which focuses on post-settlement low yield 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 top 10% of annual simple returns to investors in the fund while Burford retains any excess returns. 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 higher than normal returns for this level of risk, which is not expected, a level of sharing with the fund’s investors would come into play.)

A series of institutional investors have pledged a total of $300 million. Burford has pledged 20%, or an additional $60 million. The Advantage Fund’s investment period runs until December 24, 2024, with a harvest period of several years thereafter under a US waterfall.

Christopher Bogart, Managing Director of Burford Capital, said:

“Burford is only scratching the surface of the legal finance market. As we continue to meet the needs of our clients, we have seen unmet demand for mid-range products where the risk of litigation remains, but where the risk should be lower for or for other reasons.In response to this demand, we created the Advantage Fund to match client demand with institutional investors seeking exposure to uncorrelated legal finance cash flows at a lower risk of loss with commensurate returns.

For more information, please contact:

Burford Capital Limited

Robert Bailhache, Head of Investor Relations, EMEA and Asia – email

+44 (0)20 3530 2023

Jim Ballan, Head of Investor Relations, Americas – email

+1 (646) 793 9176

Numis Securities Limited – NOMAD and co-broker

+44 (0)20 7260 1000

Gilles Rolls

Charlie Farquhar

Jefferies International Limited – Joint Broker

+44 (0)20 7029 8000

Graham Davidson

Tony White

About Burford Capital
Burford Capital is the world’s leading legal-focused finance and asset management company. Its activities include financing litigation and risk management, asset recovery and a wide range of legal finance and advisory activities. Burford is listed 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 main offices in New York, London , Chicago, Washington. , DC, Singapore, Sydney and Hong Kong.

For more information, please visit www.burfordcapital.com.

This communication does not constitute an offer to sell or the solicitation of an offer to buy common stock or other securities of Burford.

This press release does not constitute an offer by any Burford fund. Burford Capital Investment Management LLC (“BCIM”), which acts as fund manager for all Burford funds, is registered as an investment adviser with the United States Securities and Exchange Commission. The information provided here is for informational purposes only. Past performance does not represent 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, interest or shares of funds) . Such an offer or solicitation may only be made 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 United States Securities Exchange Act of 1934, as amended, regarding assumptions, expectations, projections, intentions and beliefs regarding future events. These statements are intended as “forward-looking statements”. In some cases, predictive, future, or forward-looking words such as “aim”, “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “plan”, “direction ” “, “intend”, “may”, “plan”, “potential”, “predict”, “project”, “should” or “will” or the negative form of these or other terms statements are intended to identify 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 that are forward-looking statements, including in our reports periodicals we file with the United States 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, as they are event-related and depend on circo nstances 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 many 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 implied by, the forward-looking statements contained in this announcement. Important factors that could cause actual results to differ from those we expect include those discussed in the “Risk Factors” section of our Annual Report on Form 20-F filed with the United States Securities and Exchange Commission. on March 24, 2021. Further, 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, such results or developments may not not be indicative of results or developments in subsequent periods.

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

This information is provided by RNS, the information service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a primary information provider in the UK. Terms and conditions relating to the use and distribution of this information may apply. For more information, please contact [email protected] or visit www.rns.com.

THE SOURCE: Burford Capital Limited

See the source version on accesswire.com:
https://www.accesswire.com/694846/Burford-Capital-Limited-Announces-360m-Pre-Settlement-Investment-Fund-Close

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