Business
$360m Pre-Settlement Investment Fund Close
$360m Pre-Settlement Investment Fund Close.
About this update from Burford Capital Limited
[{"type":"text","content":"\n \n \n \n RNS Number : 1551G\n Burford Capital Limited\n 28 March 2022\n \n \n \n \n \n \n \n 28 March 2022\n \n \n \n \n \n \n \n \n BURFORD CAPITAL CLOSES NEW $360 MILLION PRIVATE INVESTMENT FUND\n \n \n \n \n \n Burford Capital Limited, the leading global finance and asset management firm focused on law, today\n announces that it has raised a new $360 million private investment fund, the Burford Advantage Master Fund LP (\"Advantage Fund\").\n \n \n \n \n \n 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.\n \n \n \n \n \n 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.)\n \n \n \n \n \n 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. \n \n \n \n \n \n Christopher Bogart, Burford Capital's chief executive officer, commented:\n \n \n \n \n \n \"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 i...