9 July 2014Print This Post

Burford reports five-fold increase in litigation funding commitments

Bogart: market demand

Burford Capital, the world’s biggest litigation funder, has reported a surge in funding commitments in the first half of this year.

In a trading update, Burford said the amount committed in the past six months, £36m, was five times higher than in the same period last year.

Further, £14m in cash had been generated in the past six months from the investment portfolio, an increase of 94% on the same period last year.

Since its inception in 2009, the company said 26 cases had concluded, yielding £102m in gross investment recoveries and £39m net of invested capital – a net return of 63%.

Christopher Bogart, Burford’s chief executive, said the company’s performance vindicated its approach to investment selection. “Moreover, the volume of new commitments made during the last six months shows clearly the market demand for litigation finance solutions.”

Mr Bogart added that the success of the Rurelec transaction showed its continuing market leadership. In the Rurelec deal, announced in April, Burford said it had made a £6.6m profit on a £9m investment by providing a corporate debt facility linked to an arbitration claim.

Burford added that it would release its full interim financial statements for the six months ending 30 June 2014 in September.

In a separate development Vannin Capital has announced that it provided funding for Gul Bottlers, a soft drinks manufacturer in Pakistan, in a successful High Court claim against Nichols plc, owner of the Vimto brand.

Mr Justice Cooke awarded Gul Bottlers the equivalent of £8m in damages, after Gul Brothers complained about the withdrawal of a license agreement.

Iain McKenny, solicitor at Vannin Capital, said: “Vannin successfully funds a great many cases like this every year and it is unusual that we get to talk about the results so openly as most of the awards are confidential or settle under confidential terms.

“We were confident that Gul had a strong case, having undertaken our rigorous assessment process before agreeing to fund it, and we are delighted that we were able to help the company access the justice it deserved.”

By Nick Hilborne

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