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Burford Capital closes new USD300m post-settlement USD300m investment fund

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Burford Capital Limited (Burford), a global finance and investment management firm focused on law, has closed the Burford Alternative Income Fund LP (BAIF), a new private fund focused on post-settlement investments. 

BAIF will invest in settled litigation matters, monetising a claimant’s settlement and other associated legal receivables. The solution serves to meet the needs of law firms awaiting payment of their fees and clients eager to release cash from the settlement, who find it attractive to secure financing against those expected receipts. 

A variety of institutional investors made commitments to BAIF in the aggregate amount of USD297.25 million. BAIF’s investment period runs until 4 September 2021, with a multi-year harvest period thereafter. BAIF will pay management fees of 1.5 per cent of invested capital, with performance fees of 10 per cent after a 5 per cent preferred return with a full catch-up. BAIF is the successor to Burford’s maiden post-settlement fund, which was founded in 2014. There is no investment in BAIF from Burford’s balance sheet. 

Burford’s total assets under management are now USD2.7 billion. 

Please refer to Burford’s most recent annual report for definitions and disclaimers concerning its private fund business. 

Christopher Bogart, Chief Executive Officer of Burford, says: “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.” 

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