Burford’s growth continues to spiral with £193m fund-raise

Bogart: Strong response from shareholders

Burford Capital, the world’s largest litigation funder, has raised a further £193m ($250m) in less than 24 hours after an oversubscribed placing.

The new shares were placed at 1850p, reflecting the extraordinary growth in the AIM-listed company’s share price in recent years. It is now valued at over £4bn.

Having been 121p at the end of 2014, the share price was 193p 12 months later, 573p at the end of 2016, 1152p when 2017 drew to a close, and at the time of writing 1800p – down nearly 10% on yesterday.

As well as more funding for litigation and arbitration, Burford intends to grow its already 100+ team, and increase the pace of geographical expansion into Germany, Australia and underserved parts of the USA, among others.

Chief executive Chris Bogart said: “We are delighted with the strong response from current and new shareholders to this modest expansion of our equity capital, which will serve as an even stronger foundation for the debt and private funds issues that we expect to follow shortly.

“We have not issued any equity into the public market since 2010 and we continually review our capital structure in light of our desire to support the growth of the business to capture the opportunities before us.

“It remains important to us that we both optimise our capital structure and retain a conservative balance sheet. We remain excited about the opportunities we see to deploy capital in legal finance to continue to develop our business.”

Meanwhile, Augusta Ventures – the third-part funder that announced a £150m capital raise earlier in the summer, has announced eight new hires to its London office.

Most are City lawyers, led by Jacqueline Young, who was previously head of group litigation at Slater & Gordon Lawyers and has joined as head of group litigation funding.

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