Burford Capital $500m complex strategies investment fund close (8170J)
03 July 2017 - 4:00PM
UK Regulatory
TIDMBUR
RNS Number : 8170J
Burford Capital
03 July 2017
This announcement contains inside information.
3 July 2017
BURFORD CAPITAL CLOSES $500 MILLION COMPLEX STRATEGIES
INVESTMENT FUND
Burford Capital Limited ("Burford"), a leading global finance
firm focused on law, announces that on 30 June 2017 its affiliate
Burford Capital Investment Management LLC closed a new $500 million
fund to invest in litigation-related complex strategies.
The new fund will invest in assets that Burford believes are
mispriced and where value can be realized through recourse to
litigation and regulatory processes. As such, Burford, through this
new fund, generally will act as a principal as opposed to
financier. The fund has already invested more than $100 million
contemporaneous with its closing. Burford regards its investment
strategies as proprietary and will not release information about
its underlying investment strategies.
Burford will rely on its existing team of litigation and
financial talent in connection with its investing activities in the
new fund. It also has expanded the team by hiring a dedicated
portfolio manager, Matthew Schoenfeld. Mr. Schoenfeld was most
recently with Driehaus Capital and Morgan Stanley's Special
Situations Group and is a graduate of Columbia University and
Harvard Law School.
The new fund is structured as an evergreen fund with a perpetual
life based on continued LP commitments. Investors in the fund will
pay Burford a management fee of 2% per annum on drawn capital and a
performance fee of 20% of fund profits on each resolved investment,
subject to a 5% per annum priority return to investors, after which
the Burford performance fee will receive a traditional general
partner catch-up.
Burford is enthusiastic about the opportunities in
litigation-related complex strategies, and is attracted to a
greater level of exposure to those investments than it would
achieve simply through performance fee income. As a result, Burford
has committed $150 million to the new fund from its own balance
sheet (a commitment on which it will not pay fees). Burford's
employees and directors are similarly positive and have personally
invested more than $5 million in the new fund. Thus, the amount
raised from third-party investors on which fees will be paid is
nearly $350 million.
Adam Gerchen, Burford's President who will oversee the
activities of the new fund, said:
"We are delighted to broaden Burford's investment activities
with this new fund. Institutional investor demand for allocations
to the new fund was robust, and we are grateful for the support we
received. With Burford's co-investment, we believe that the
alignment of interests will well serve both Burford's shareholders
and the fund's investors. We are excited about the opportunities to
expand Burford's business that have presented themselves since the
combination of Burford and Gerchen Keller."
The person responsible for arranging for the release of this
announcement on behalf of the Company is Elizabeth O'Connell,
Managing Director.
For further information, please contact:
Macquarie Capital (Europe) Limited +44 (0)20 3037
- NOMAD and Joint Broker 2000
Jonny Allison
Nicholas Harland
Liberum Capital Limited - Joint +44 (0)20 3100
Broker 2222
Richard Crawley
Jamie Richards
Numis Securities Limited - Joint +44 (0)20 7260
Broker 1000
Charlie Farquhar
Andrew Holloway
Neustria Partners - Financial +44 (0)20 3021
Communications for Burford Capital 2580
Robert Bailhache [email]
Charles Gorman [email]
Nick Henderson [email]
+1 212 235
Burford Capital Limited 6825
Elizabeth O'Connell, CFA, Managing
Director
About Burford Capital
Burford Capital is a leading global finance firm focused on law.
Its businesses include litigation finance and risk management,
asset recovery and a wide range of legal finance and advisory
activities. Burford is publicly traded on the London Stock
Exchange, and it works with law firms and clients around the world
from its principal offices in New York, London and Chicago.
For more information about Burford, visit
www.burfordcapital.com
Important Information
Burford Capital Investment Management LLC ("BCIM") is registered
as an investment adviser with the U.S. Securities and Exchange
Commission. This release is for informational purposes only. It
describes multiple investment vehicles that total $500 million in
size, are focused on a single investment strategy, and share common
terms such as management and performance fees. Nothing herein
should be construed as a solicitation to offer investment advice or
services. Information about investing in BCIM-managed funds is
available only in the form of private placement memoranda and other
offering documents.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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