Stan
- 19 Dec 2018 11:35
- 11 of 15
Burford Capital secures funding for $1.6bn in new litigation investments
StockMarketWire.com
Investment manager Burford Capital said Wednesday it had entered into a strategic relationship with a sovereign wealth fund and raised a new private fund to finance its litigation investments.
The capital for Burford's next $1.6bn litigation finance investments would be supported by three sources: a sovereign wealth fund; a new private investment fund; and the company's own balance sheet.
The size of its new private fund, the Burford Opportunities Fund, would limited to $300m and the company pledged to allocate 25% of each new litigation finance investment to the fund during the its three-year investment period or until the fund is fully committed. The sovereign wealth fund committed a $1bn pool of capital to be invested on a 2:1 basis, with the investor deploying $667m and Burford providing the remaining $333m.
Burford would allocate 50% of each new litigation finance investment to this pool of capital for the next four years or until the pool is fully committed, whichever occurs first, the company said.
After the recovery of the capital invested, Burford would receive 60% of investment profits while investing only 33% of the capital. The company would also receive a priority distribution in an expected amount of approximately $7m annually to defray Burford's running costs.
'The new capital sources we are announcing will enable us to make $1.6 billion in new investments with only $633 million of that coming from the balance sheet,' said Elizabeth O'Connell, Burford's Chief Financial Officer.
At 9:31am: (LON:BUR) Burford Capital Ltd share price was +253p at 1551p
Story provided by StockMarketWire.com
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SP up 17 1/2%! so far.
cynic
- 19 Dec 2018 12:31
- 12 of 15
a very good company
i have thought about buying in on a few occasions, but never pulled the trigger