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Burford Capital — Investor Presentation (June 2016)
21 slides from Burford Capital's investor presentation, June 2016
Slide 1: 2016 Judgment Enforcement Survey
BURFORD BAROMETER 2016 Judgment Enforcement Survey Understanding and solving the enforcement challenge
Slide 2: Introduction
Introduction Overcoming the “legal paper” challenge Burford Capital is committed to providing Indeed, 58 percent of in-house lawyers surveyed intelligence and insight to help in-house and in April 2016 by T he Lawyer Research Service private practice lawyers achieve better for this study said that
Slide 3: The challenge
The challenge Enforcing judgments is not a forgone conclusion Judgment enforcement is a significant problem for corporates and the firms who work with them. Being left with little more than a piece of legal paper after a lengthy courtroom battle is an unpleasant outcome of litigation and arbitration
Slide 4: Key findings
2016 Judgment Enforcement Survey Key findings 1. Enforcing judgments is not a foregone conclusion 2. Most clients have experience with 58 % unenforced judgments 3. Unenforced judgments are a significant unrealized corporate asset 4. Enforcement options are available, including financing 5. Understan
Slide 5: Enforcement challenges are widespread
Enforcement challenges are widespread 93 92 73 61 39 28 7 8 Agree Disagree Agree Disagree Enforcing and recovering judgments/awards is a matter of procedure It is not inevitable t hat t he f ull v alue of judgments/awards is recovered Private practice Corporates 5 © Burford Capital 2 016 – All right
Slide 6: Enforcement impacts conversations between firms and clients
Enforcement impacts conversations between firms and clients How often do you discuss Have any of your clients ever not judgment/award enforcement and pursued a claim due to concerns recovery with clients at the outset of regarding enforcement? litigation or arbitration? 89% 60% 33% 11% 6% 1% Always
Slide 7: Enforceability must be the first question
“Enforceability must 74% be the first question when thinking about of in-house executives say ease whether to pursue a and likelihood of recoverability is the most important factor influencing whether to pursue fraud case.” litigation/arbitration Bernard O’Sullivan, Partner Olswang 7 © Burford Capit
Slide 8: Enforcement influences decision-making
Enforcement influences decision-making Impact of ease and likelihood of recoverability on decision to pursue claim 76% 74% 22% 12% 11% 4% 1% 0% Most important f actor Very important f actor Not an important f actor but is Never factored into our decision considered making process Private practice Co
Slide 9: Most clients have not been paid the full value of an award
Most clients have not been paid the full value of an award In the last 5 years, have you/your clients ever not been paid the full face value of a successful litigation or arbitration judgment or award? 86% 58% 42% 14% Yes No Private practice Corporates 9 © Burford Capital 2 016 – All rights reserved
Slide 10: Unenforced judgments are a significant unrealized corporate asset
Unenforced judgments are a significant unrealized corporate asset What is the potential value of your / your clients’ unenforced judgments in the last 5 years? 67% 63% 25% 13% 14% 6% 6% 6% Under $10 million $10-$30 million $30-$50 million Over $50 million Private practice Corporates 10 © Burford C
Slide 11: Judgments often go unenforced because money is hidden offshore
Judgments often go unenforced because money is hidden offshore Have you ever had a judgment/award that was unenforced because money was hidden in offshore jurisdictions? 62% 30% 8% Yes No - all of our judgments/awards have been No - some of our judgments/awards have not satisfied been satisfied bu
Slide 12: The economics of enforcement play a role
The economics of enforcement play a role Typically, what was the main reason the full face value of the successful award was not paid? 61% 45% 33% 22% 22% 17% Economics of s ettlement more f avourable Legal barriers Lack of resources t o pursue Private practice Corporates 12 © Burford Capital 2 016
Slide 13: Judgment enforcement solutions
Judgment enforcement solutions Partners like Burford are able to provide a range of enforcement services • Asset tracing and investigations – Identify assets that are commercially pursuable and strategically important 1/2 – Prove legal and beneficial ownership – Overcome other bars to enforcement •
Slide 14: Judgment enforcement solutions
Judgment enforcement solutions Corporates are less aware of the financing options available for enforcement • Burford is able to offer a range of financing options for judgment enforcement and asset tracing services—enabling corporates to move cost and risk off their balance sheets if desirable 1/4
Slide 15: Private practice firms are aware of enforcement options
Private practice firms are aware of enforcement options What type of judgment enforcement services have your clients used in the past year? 69% 65% 59% 32% 22% 20% 13% 11% 9% Judgment enforcement f ee-based advisory Contingent arrangements (where judgment The sale of unsatisfied judgments and award
Slide 16: Clients are less aware of enforcement options
Clients are less aware of enforcement options What type of judgment enforcement services have you used in the past three years? 60% 58% 50% 35% 31% 26% 19% 14% 8% Judgment enforcement f ee-based advisory Contingent arrangements (where judgment The sale of unsatisfied judgments and awards services (
Slide 17: Litigation funding for enforcement
Litigation funding for enforcement How does it work? • The funder will cover the costs of enforcement, including legal and other costs in return for a proportion of damages recovered • Importantly, the claimant does not pay any fees until cash proceeds are released • This type of funding is still re
Slide 18: Conclusion
Conclusion 2016 Judgment Enforcement Survey • Corporates are ceding staggering sums to unenforced judgments. According to a third of private practice lawyers, the value of their clients’ unenforced judgments in the last five years exceeds $10 million. Some 14 percent said this figure exceeds $50 mil
Slide 19: About the research
About the research 2016 Judgment Enforcement Survey In April 2016, online surveys were distributed to over 200 private practice litigation and arbitration lawyers, in-house counsel and corporate C-level executives. T he majority (61 percent) are private practice lawyers. T he remainder are in-hou
Slide 20: About Burford Capital
About Burford Capital Leading global finance firm focused on law Burford Capital is a leading global finance firm focused on law. Burford’s businesses include litigation finance, insurance and risk transfer, law firm lending, corporate intelligence and judgment enforcement, and a wide range of inves
Slide 21: Contact Liz Bigham
Contact Liz Bigham lbigham@burfordcapital.com +1 212 235 6820 Click here to access the full Judgment Enforcement Survey, and here to access the prior surveys. 21 © Burford Capital 2 016 – All rights reserved