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Overview of Burford Capital Ltd
Burford Capital Ltd (symbol: BUR) is a global finance and asset management firm with a specialized focus on legal finance, litigation finance, and risk management. The company transforms legal claims into valuable assets by providing innovative financing solutions to litigants and law firms. Its services enable clients to secure capital for commercial disputes, ensuring that meritorious cases can be pursued based solely on their merits.
Business Model and Core Services
Burford Capital operates through two primary segments that reflect its diverse expertise:
- Principal Finance: This segment involves deploying capital from the company’s balance sheet to fund legal finance assets. It supports legal claims through structured financial products and capital provision assets. This approach allows the firm to directly engage in litigation finance while managing risk and optimizing capital allocation.
- Asset Management and Other Services: This segment encompasses advisory services, law firm lending, litigation insurance, corporate intelligence, judgment enforcement, and other related legal finance activities. Through these offerings, Burford Capital provides a wide array of solutions that help mitigate financial risk and unlock cash flow opportunities for its clients.
Industry Position and Market Presence
Burford Capital is recognized for its innovative approach in the legal finance space. By treating legal claims as assets, the company has positioned itself as a pioneer in a field often described as a "game-changer" by industry commentators. Its client base spans across the globe, including major corporations, high-profile law firms, and financial institutions. With operations in strategic markets such as the United States, United Kingdom, Singapore, Hong Kong, China, and Australia, Burford Capital effectively leverages its international presence to serve a diverse range of clients.
Diversification and Risk Management
The firm’s diversified portfolio includes litigation finance, insurance and risk transfer, law firm lending, asset recovery, and a broad suite of legal finance and advisory activities. This diversified business model helps manage risk through multiple revenue streams and strategic asset allocation. By integrating robust risk management frameworks, Burford Capital ensures that financial resources are deployed efficiently and that clients receive comprehensive support across various legal and financial challenges.
Operational Excellence and Expertise
Burford Capital’s operations are underpinned by deep industry expertise and a commitment to transparency. The company employs a precise and measured approach to financing legal claims, supporting its reputation as a reliable partner in complex commercial disputes. Its financial and advisory services are designed to provide clear value-addition by shifting legal expenses away from operational budgets, thus enabling more effective capital management.
Competitive Landscape
Operating in a niche yet rapidly evolving market, Burford Capital faces competition from both traditional financial institutions and emerging legal finance specialists. The company differentiates itself through its extensive experience, a diversified service offering, and a strategic focus on treating legal claims as investable assets. These factors enable Burford Capital to maintain a competitive edge in the global legal finance arena.
Clientele and Global Reach
Burford Capital’s clientele ranges from startups and growing companies to large public corporations and premier law firms, including collaborations with notable industry groups such as the majority of top-tier law firms in the United Kingdom and many in the United States. Its global offices in New York, London, Chicago, Washington, DC, Singapore, Dubai, Sydney, and Hong Kong allow the firm to serve a geographically diverse and sophisticated market effectively.
Conclusion
In summary, Burford Capital Ltd exemplifies a sophisticated integration of financial acumen with legal expertise. Its innovative business model not only provides capital solutions for litigation and legal disputes but also reinforces a robust risk management framework that adapts to the evolving needs of its global clientele. The company’s approach to converting legal claims into liquid financial assets continues to set industry benchmarks, making it a pivotal player in the legal finance sector.
Burford Capital Limited has announced an upcoming investor event scheduled for November 2, 2021, from 10:00 AM to 12:30 PM EDT. CEO Christopher Bogart and CIO Jonathan Molot will host the event, which is aimed at institutional investors and analysts. It will take place in-person at the New York Stock Exchange with a simultaneous online video webcast available to registered participants. Further details on registration will be provided later. Burford is publicly traded on the NYSE under the symbol BUR.
Burford Capital Limited announced its financial results for the first half of 2021, reporting substantial growth in new business. Direct new commitments soared by 334% to $503 million, while deployments jumped 229% to $398 million. The portfolio grew to $4.8 billion, and the return on invested capital improved to 95%. However, the company posted a net accounting loss after tax of $67 million, largely due to non-cash accruals, although adjusted profit after tax was $17 million. An interim dividend of 6.25¢ per share was declared, payable on December 2, 2021.
Burford Capital announced the details for its earnings call on September 9, 2021, at 10:00 AM EDT for the six-month period ending June 30, 2021. Investors and analysts are encouraged to pre-register for the call, with dial-in options available. A results presentation will be accessible on the company’s website. A replay of the call will be available until September 23, 2021. Burford Capital, known for its focus on finance and asset management in law, operates globally, providing litigation finance, risk management, and asset recovery services.
Burford Capital Limited reported significant advancements for the six months ending June 30, 2021. New commitments exceeded $500 million, with nearly $400 million deployed. Portfolio returns rose to 95% ROIC, while realized losses decreased to 0.5%. However, the company anticipates a net loss of approximately $70 million due to one-time non-cash accruals. The liquidity position remains strong, exceeding $430 million. Burford is considering converting to US GAAP by year-end, which may lead to balance sheet adjustments. The interim results will be announced on September 9, 2021.
Burford Capital has released research highlighting CFOs' growing influence on corporate legal departments and the management of legal costs. Key findings reveal that 73% of financial officers have extensive recovery programs, with 75% of companies over $1 billion in revenue holding unenforced judgments valued between $20-$100 million. Notably, only 24% apply quantitative modeling to litigation decisions, indicating significant untapped potential for financial innovation in legal contexts. The report outlines a shift in recognizing pending litigations as valuable assets and the importance of integrating commercial strategies into legal departments.
Burford Capital announced it will release interim results for the six months ending June 30, 2021, on September 9, 2021, at 7am EDT. A conference call for investors will follow at 10am EDT. Burford, a leading global finance and asset management firm focused on law, is involved in litigation finance, risk management, and asset recovery. The company, publicly traded on NYSE and LSE under the ticker BUR, operates in major cities including New York and London. Key forward-looking statements highlight potential risks and uncertainties that may affect future performance.
Burford Capital Limited has appointed Kenneth A. Brause as its new Chief Financial Officer, effective May 3, 2021. Brause brings 35 years of financial services experience, having previously served as CFO at OnDeck Capital and held executive roles at CIT Group. His appointment follows the tenure of Jim Kilman, who led for nearly two years and will transition to a Senior Advisor role. CEO Christopher Bogart expressed confidence in Brause's expertise, particularly in enhancing Burford's growth and US capital markets presence.
Burford Capital, a leader in legal finance, announced significant team enhancements to meet rising client expectations. With a portfolio of $4.5 billion in legal finance assets, the firm has expanded its workforce to 136 employees, comprising 50% lawyers and a diverse team. Key promotions include John Lazar moving to London to develop UK and European markets, alongside Michael Redman and Daniel Hall as Managing Directors. New hires include Emily Tillett in Hong Kong and Reda Hicks in Houston, reflecting Burford's growth in international legal finance.
Burford Capital Limited reported its FY 2020 audited results, marking a historic year with significant portfolio performance improvements. Asset recoveries accelerated, with direct asset realizations soaring 72% to $608 million. The Burford-only capital provision net realized gains increased 42% to $182 million. The firm reported robust cash generation, with $1 billion in cash receipts and a liquidity increase of 63% to $336 million. Despite challenges, total income was only down 1%, and the dividend was restored to 12.5c per share, showcasing resilience amid the pandemic.
Burford Capital Limited announced the details for its earnings call scheduled for March 24, 2021, covering the twelve-month period ended December 31, 2020. Investors and analysts are encouraged to pre-register via the provided link to access the call at 10.00am EDT. A comprehensive presentation of the 2020 results will be available on the Burford Capital website. A replay of the earnings call will also be provided until April 7, 2021. Burford Capital is a leading global finance and asset management firm focused on law and is publicly traded on the NYSE (BUR).
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