Burford Capital Raises $500M For New Complex Strategies Fund

Jul 3 2017 | 7:34pm ET

Litigation finance specialist Burford Capital has raised $500 million for a new fund that will concentrate on litigation-related complex strategies. 

The new fund closed on June 30, the company said in a statement, and will invest in assets that Burford believes are mispriced and where value can be realized through recourse to litigation and regulatory processes. Burford will generally act as a principal as opposed to financier in the new vehicle, which is structured as an evergreen fund with a perpetual life based on continued LP commitments. More than $100 million of the total raised has already been invested, the company added. 

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. 

The company will rely on its existing team of litigation and financial talent in connection with its investing activities in the new fund, the statement continued, while expanding its investment team with the hire of former Dreihaus Capital executive Matthew Schoenfeld as dedicated portfolio manager. The company has also committed $150 million to the new fund from its own balance sheet (on which it will not pay fees) while Burford’s employees and directors have personally invested more than $5 million in the new fund. 

“We are delighted to broaden Burford’s investment activities with this new fund,” said Adam Gerchen, Burford president. “Institutional investor demand for allocations to the new fund was robust, and we are grateful for the support we received.”

Founded in 2009, headquartered in New York, and listed on the London Stock Exchange, Burford Capital was one of the pioneers in institutional-quality litigation finance. The company’s activities also include risk management, asset recovery and a wide range of legal finance and advisory activities.  

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