Burford Capital nets almost £300m for new fund

Burford Capital on Monday closed its new law focused Burford Alternative Income Fund LP (BAIF) after having raised £297.3m.

The global finance and investment management firm said the fund will invest in settled litigation matters, monetising a claimant's settlement and other associated legal receivables, meeting the needs of law firms awaiting payment of their fees and clients, eager to release cash from the settlement, who therefore find it attractive to secure financing against those expected receipts.

The fund's investment period runs until 4 September 2021, with a multi-year harvest period thereafter, and will pay management fees of 1.5% of invested capital, with performance fees of 10% after a 5% preferred return with a full catch-up.

With the new fund, which is the successor to Burford's maiden post-settlement fund, the AIM traded company's total assets under management are now $2.7bn.

Christopher Bogart, chief executive of Burford, said: "We are pleased to complete our latest fundraising and to have an expanded post-settlement offering for our clients. BAIF's investment strategy helps clients manage the frequent and significant delays that occur between the point at which parties agree a settlement and the finalisation of and payment under the settlement. Furthermore, the solution supports our aim of fulfilling client needs across the lifespan of a litigation matter's duration, from inception through to conclusion."

Burford Capital's shares were down 0.81% at 1,707.00 at 1614 BST.