* Burford invests $4.3 mln in two cases
* Company is in due dilligence on more potential cases
LONDON, Nov 23 (Reuters) - Burford Capital (BURF.L), the AIM-listed investor in corporate lawsuits -- said on Monday it has made its first two investments since raising 80 million pounds ($132.3 million) in an IPO last month.
Burford has invested $2 million in a trade secret theft and breach of contract case pending in a U.S. federal court and put up $2.3 million for a shareholder dispute over proceeds from the sale of a business.
Commercial dispute funds seek to secure a proportion of the payouts awarded in legal cases by paying a proportion of the costs. Burford is chaired by former Barclays chairman and chief executive officer Peter Middleton and competes with London-listed Juridica Investments (JIL.L).
It also said in a statement that more investments are imminent and it is in due diligence with a number of the 25 potential cases it has reviewed in the last month.
The two cases are for Burford's short duration portfolio of disputes expected to pay a return within 18 months.
The trade secret theft case has a trial date set for May next year. Burford will be entitled to receive 35 percent to 67 percent of settlements depending on the size of payout.
The second investment is structured to pay three times Burford's commitment if the case is settled during arbitration, and four times if settled subsequently. ($1=.6047 Pound) (Reporting by Chris Vellacott) (For the Hedge Hub blog: blogs.reuters.com/hedgehub) (For Global Investing: here) ((chris.vellacott@thomsonreuters.com; +44 (0) 20 7542 3987; Reuters Messaging chris.vellacott.thomsonreuters.com@reuters.net)
Many people just see the headline and don't understand the terms. This post goes into the weeds of the legal funding industry. Litigation Funding is a risky business with a lot of downside. The funding is non recourse which means once they fund a case and the amount cannot be paid back by the borrower under any circumstances.
ReplyDeletePretty good post. I just stumbled upon your blog and wanted to say that I have really enjoyed reading your
ReplyDeleteblog posts.
business lawyer ma
I give praise to Mr Pedro enough for his help in securing a loan to buy our new home for our family. Pedro was a wealth of information and he helped educate me and my family as to why a home loan was the best option for our particular situation. After conferring with Pedro Jerome and our financial advisor everyone agreed that a home loan was the perfect solution.
ReplyDeleteYou can contact Mr PEDRO JEROME if you also looking for any kind of loan on Email/Whatsapp
email: pedroloanss@gmail.com
Whatsapp: +1-8632310632