Business
$350 Million Post-Settlement Investment Fund Close
$350 Million Post-Settlement Investment Fund Close.
About this update from Burford Capital Limited
[{"type":"text","content":"\n \n \n \n \n \n \n 13 June 2022\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n BURFORD CAPITAL RAISES MORE THAN $1 BILLION IN THREE MONTHS\n \n \n \n \n WITH NEW $350 MILLION POST-SETTLEMENT INVESTMENT FUND\n \n \n \n \n \n \n \n \n Burford Capital Limited, the leading global finance and asset management firm focused on law, today announces\n the closing of the $350 million Burford Alternative Income Fund II LP (\"BAIF II\"), a new private fund focused on post-settlement investments. BAIF II will invest in settled litigation matters, monetizing a claimant's settlement and other associated legal receivables. The solution serves to meet the needs of law firms awaiting payment of their fees and clients eager to release cash from a settlement, who find it attractive to secure financing against those expected receipts.\n \n \n \n \n \n Together with a recent new $360 million bond issue and the closing of a new $360 million pre-settlement investment fund, Burford has in total raised more than $1 billion within the past three months to fund the further growth of its business.\n \n \n \n \n \n BAIF II's investment period runs until September 11, 2025, with a multi-year harvest period thereafter. BAIF II will generally pay management fees of 1.5% of invested capital, with performance fees of 12.5% after a 5% preferred return with a full catch-up. BAIF II is the successor to Burford's prior post-settlement funds, Burford Alternative Income Fund (\"BAIF\") founded in 2019 and BCIM Credit Opportunities LP (\"COLP\") founded in 2014. BAIF's investment period ended April 4, 2022, while COLP's investment period ended September 30, 2019. There is no investment in BAIF II from Burford's balance sheet.\n \n \n \n \n \n \n Christopher Bogart, Burford Capital's chief executive officer, commented:\n \n \n \n \n \n \n \"We are delighted to close a new post-settlement fund, backed by a combination of existing and new Burford private fund LPs. BAIF II's investment strategy will mimic BAIF and COLP, helping clients manage the frequent and significant delays that occur between the point at which parties agree a settlement and the finalization of and payment under the settlement. The solution supports our aim of fulfilling client needs across the lifespan of a litigation matter's duration, from inception thro...