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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 has appointed Jordan Licht as its new Chief Financial Officer, transitioning from his role as COO at Caliber Home Loans. Licht's extensive experience includes significant positions at Morgan Stanley and consulting at Diamond Consulting. He aims to enhance Burford's finance function as the firm completes its transition to a full US SEC-registered issuer. Licht replaces Ken Brause, who will act as a Senior Advisor during the transition. CEO Christopher Bogart expressed confidence in Licht's capabilities to advance the company's finance structure.
Burford Capital Limited will disclose its interim results for the six months ended June 30, 2022, on August 9, 2022, at 7.00am EDT. A conference call for investors and analysts is scheduled for the same day at 10.00am EDT. Investors can pre-register for the call through the provided link to ensure dedicated access. An interim results presentation will be available on Burford's website on the same date. A replay facility will also be accessible until August 23, 2022.
Burford Capital announced that Andrea Muller, a non-executive director, purchased 10,000 ordinary shares between June 21 and June 23, 2022, for an average price of $8.88 per share on the New York Stock Exchange. This transaction follows the company's ongoing commitment to transparency in dealings by insiders. The notification is part of regulatory compliance for securities transactions by persons discharging managerial responsibilities.
Burford Capital announced the closing of $350 million for its Burford Alternative Income Fund II LP, focusing on post-settlement investments. This fund will support law firms and clients by monetizing legal receivables. In addition, Burford has raised over $1 billion in three months through a new bond issue and a pre-settlement fund. The investment period for BAIF II will last until September 11, 2025. CEO Christopher Bogart expressed satisfaction with the fund's launch, highlighting its importance in addressing payment delays in settlements.
Burford Capital Limited announced its plan to purchase ordinary shares worth approximately £160,000 to meet the awards for its non-employee directors. This initiative aims to buy up to 23,066 Shares based on recent average closing prices on the New York and London Stock Exchanges. The purchase will take place in the open market following this announcement. An update will be provided once the purchases are completed.
Burford Capital has announced details for its global retail shareholder call scheduled for June 16, 2022, at 9:00 AM EDT. CEO Christopher Bogart will review 2021 results and previous disclosures. Shareholders can participate by pre-registering at this link and submit questions via email. Burford Capital is publicly traded on the NYSE and LSE under the ticker BUR, focusing on finance and asset management in the legal sector.
Burford Capital Limited announced the Sterling conversion rate for its 2021 final dividend, set at 6.25 US cents per ordinary share, payable on June 17, 2022. Shareholders opting for Sterling will receive 4.954419 pence per share based on an exchange rate of £1 = US$1.2615 as of May 27, 2022. This dividend reward continues to reflect Burford's commitment to returning value to its shareholders.
Burford Capital Limited has announced an extension of its arrangement with a sovereign wealth fund (SWF) until December 31, 2023. The BOF-C fund had $633 million in active commitments, but only $274 million was deployed. The new terms allow Burford to allocate 25% of new matters to BOF-C, with the remaining 75% on the balance sheet. This change reflects a strategic capital raise of $360 million and aims to diversify investments. Burford continues to manage funds with varying potential returns, emphasizing a structured approach to capital allocation.
Burford Capital Limited announced the approval of all resolutions at its annual general meeting on May 18, 2022. A final dividend of 6.25 US cents per ordinary share was approved, scheduled for payment on June 17, 2022. Shareholders registered by May 27, 2022, will be eligible. The meeting also confirmed the appointment of Christopher Halmy as a new director. Total voting results showed overwhelming support for the resolutions, with the majority receiving over 106 million votes in favor and minimal opposition.
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