RE: Reality Check?6 Apr 2023 15:37
(1) Jim Kilman was an interim appointment, brought out of retirement, as a safe pair of hands, see
.."Prior to joining Burford, Mr. Kilman was Vice Chairman of Investment Banking at Morgan Stanley, where he served as Burford’s investment banker. He spent 32 years in the investment banking business, including senior roles at Goldman Sachs, ABN AMRO and PaineWebber. Through much of his career, he worked with the management and boards of diversified financial services companies in providing advice on strategy, mergers and restructurings and in raising debt and equity capital. Following his retirement in 2016, he became a Senior Advisor to Burford and founded and became Chief Executive Officer of KielStrand Capital, a family office based in Scarborough, New York.
Mr. Kilman currently serves as a Trustee of the MFS Mutual Funds, Boston, MA, the oldest and one of the largest mutual fund complexes in the US. He previously held Board roles with alpha-En Corporation, Recombinetics Inc and ModSpace Corporation, among others.
Mr. Kilman graduated with an MA and a BA in Economics from Yale University...."
https://www.burfordcapital.com/team/people/jim-kilman/
(2) This article - https://www.americanbanker.com/news/why-ondeck-capital-is-going-for-a-fire-sale-price - goes some way towards explaining the combination of structural (funding costs) and market circumstances (SME loans during pandemic) that precipitated OnDeck Capital's demise. There's no suggestion of it being a 'Wonga' type operation, AFAICS : it charged a high rate of interest because it paid a high rate of interest (and was hoping to get a bank charter to mitigate this, when it was overtaken by events).
(3) The 'current unresolved accounting issues' are largely SEC-driven and are (esp post Petersen outcome, which validates BUR's over-conservative approach) likely to work to BUR's favour.
Have you bothered to read investor321123's BurforCapital's Investment Thesis?
This fully addresses your concerns, AFAICS.
I note, incidentally, that you haven't answered my question : if you think BUR is mispriced (over), do you have the courage of your convictions and have you gone short? Y/N?
TIA
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