The founders of the world’s largest litigation funder, Buford Capital, each became nearly £60m richer this week after selling some of their shares for the first time since launching the company in 2009. Chief executive Christopher Bogart and chief investment officer Jonathan Molot sold a third of their holdings.
A law firm is attempting to build a group action to win compensation for students who miss out on teaching time due to the ongoing university lecturers’ strike. The firm anticipates that others will attempt to build similar actions, but with the large number of students potentially affected, “there’s enough cake for everybody to have a slice”.
The world’s biggest litigation funder, AIM-listed Burford Capital, yesterday unveiled spectacular results for 2017, with net profit after tax up 130% to £190m and new investments totalling nearly £1bn. It predicted that Brexit would be positive for the company, and also warned that the “English preoccupation” with adverse costs was making this jurisdiction less appealing anyway.
Leading litigation funder Burford Capital has sold a £9.3m investment in a successful arbitration for £77m while a bid to annul the award is ongoing. It said the sale would lock in its gain on the investment and accelerate cash recovery to enable reinvestment of the capital.
Burford Capital has announced that it is to launch its own insurance company to provide adverse costs cover in high-value commercial litigation and arbitration claims where it is also providing third-party funding. It is designed to meet a need for “significant levels of adverse costs cover for major cases in costs-shifting jurisdictions around the world”.
The High Court has reassured third-party funder Harbour Litigation Funding that it will receive a £56m recovery from a successful case it backed, after joining the action over concerns that it would not be paid. If an agreement to pay the money was not fulfilled, Mr Justice Picken said the funder could come back for a court order.
Third-party funder Therium has completed the first close of its new £300m, its largest fund to date. The first close is at £200m with a further £100m expected before final close. The investors include both Therium’s existing major investor and new global institutional investors.
The top 20 UK independent litigation funders now hold assets of just over £1bn, a 42% increase in just 12 months, according to research by City law firm RPC. It attributed the rise to continued investment from private equity firms and hedge funds in “this increasingly popular alternative asset class”.