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21 Jan 2010 07:00
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21Β January 2010Β
Burford Capital Announces FurtherΒ Investments
And Reports on Business Progress
Burford Group Announces Expanded Team; Jonathan MolotΒ Appointed Chief Investment Officer
Burford Capital Limited ("Burford" or "the Company"), the commercial dispute investor, todayΒ is pleased toΒ report on its progress during its first quarter of existence.
InvestmentΒ Update
Burford has now closed five investments with total capital commitments in excess of $15Β million, two of which were previously described in ourΒ announcement dated 23 NovemberΒ 2009Β and the other threeΒ of which are described below.
BurfordΒ hasΒ closed a $5 million investmentΒ originated fromΒ a major US law firm in connection with a pending corporate litigation matter involving alleged breach of contract and fiduciary duty.Β In the event of recovery,Β the structure of the investment providesΒ for theΒ upfrontΒ and priorityΒ repaymentΒ of Burford'sΒ entire commitmentΒ plusΒ 33% of any settlementΒ beforeΒ judgmentΒ or 40% of any judgmentΒ if the matter does not settle beforeΒ judgment.Β Factual discovery inΒ this matter is largely complete. Although the current trial dateΒ in June 2010 is not definite,Β theΒ matterΒ is expected to be resolved withinΒ aΒ 12-18 month periodΒ and is a further investment for Burford's short duration portfolio.
Burford has also closed two investments in international arbitration matters, both of which are alreadyΒ pending before arbitral tribunals.Β Burford expects to commit approximately $6 millionΒ in totalΒ between the two investments if both remain outstanding through adjudication, and BurfordΒ is entitled toΒ betweenΒ 40% andΒ 50% of any recovery depending onΒ theΒ amount.Β If not resolved beforehand, one matter would be expected to have its merits hearing in theΒ second halfΒ of 2010 and the otherΒ in mid-2011.Β Following a merits hearing it can take a number of months for an arbitral tribunal to release a decision.Β Both of these matters are for Burford's core investment portfolio.
Investment Pipeline
Burford continues to see strong interest in its investment proposition from lawΒ firms,Β corporationsΒ and others.Β As expected, the major US law firms are a significant source of potential investments for the Company.Β BurfordΒ GroupΒ Limited ("Burford Group"), the Company's Investment Adviser,Β hasΒ informedΒ BurfordΒ that it hasΒ a substantialΒ and growingΒ pipeline of investment opportunities that it is reviewing and on which it is performing diligence. As expected, Burford Group rejects many more potential investments than it recommends to the CompanyΒ for investment, and also as expected, larger investment opportunities take longer to review and assess than do investments for Burford's short duration portfolio.
Burford Group Expanded Team and Management Structure
Burford GroupΒ has informed the Company of the following updates in its staffing andΒ organisation:
Jonathan T. Molot has been appointed as the Chief Investment Officer of Burford Group and has become a full equity partner.1Β Mr. Molot has chaired Burford Group'sΒ InvestmentΒ Committee since inception.Β Mr. Molot is also a Professor of Law at Georgetown University Law CenterΒ and has been a visiting professor at Harvard Law School.Β Mr. MolotΒ has also beenΒ a senior advisor to the Obama Transition Team and to theΒ USΒ Treasury Department during the early days of the Obama Administration.Β Mr. Molot is aΒ magna cum laudeΒ graduate of Harvard Law School and Yale University, clerked for the United States Supreme Court,Β is an experienced litigator,Β andΒ isΒ an expert in litigation risk management andΒ litigation finance.
Selvyn SeidelΒ and Christopher Bogart, Burford's founding Principals, will continue in their current roles;Β their titles will become Chairman and Chief Executive Officer, respectively.Β
Peter Benzian has been appointed a Managing Director of Burford Group LLC, Burford Group's US subsidiary, with responsibility for complex investment review and monitoring.Β Mr. Benzian was for many years a senior partner at Latham & Watkins and Chairman of the Litigation Department of Latham'sΒ San DiegoΒ office.Β He is a member of the National Institute of Trial Advocacy and a member of the Board of Governors and Past President of the Association of Business Trial Lawyers of San Diego.Β Mr. Benzian is a highly experienced commercial trial lawyer.
Renee Russell has been appointed Manager, BusinessΒ AffairsΒ of Burford Group LLC.Β Ms. Russell started her career at Goldman Sachs and Time Warner and later attended law school,Β graduatingΒ cum laudeΒ andΒ in the top 5% of the classΒ from Howard Law School,Β andΒ practisedΒ as an Assistant District Attorney in New York CityΒ before joining BurfordΒ Group LLC.
Stefanie Meyenhofer-Peters has joined the investment review team of Burford Group LLC.Β Ms. Meyenhofer-Peters holds a Masters of Law,Β magna cum laude, from the University of Fribourg Law School in Switzerland and is a qualified and experienced Swiss lawyer who has also recently completed a second Masters of LawsΒ degreeΒ from the University of Chicago Law School.
1Β Subject to the approval of the Guernsey Financial Services Commission.
Β
Christopher Bogart,Β Chief ExecutiveΒ OfficerΒ of Burford Group, commented:Β
"We are pleased to report our substantial progress over our first 90 days.Β We are gratified that our team has expanded in an exceptional way, and are thrilled to have a world-class talent like Jon MolotΒ as a full partner and CIO.Β Β These developments and our ability to closeΒ fiveΒ attractiveΒ investments inΒ our first 90 days isΒ a testament to ourΒ team, ourΒ business model and the market opportunity that exists."
For further information, please contact:
Fox-Pitt, Kelton LimitedΒ
Marc Milmo +44 (0)20Β 7065 2000
Jonny Franklin-Adams
Financial Dynamics
Rob Bailhache +44 (0)20 7269 7200
Nick Henderson +44 (0)20 7269 7114
www.burfordcapital.com
About Burford Capital
Burford Capital's strategy is to create and manage a portfolio of commercial dispute financing investmentsΒ diversified byΒ duration, claim type, geography and a number of other variables,Β with the aim of providing shareholders with attractive levels of dividends and capital growth. The Company expects returns to be uncorrelated to general equity market performance.Β
In the short term, the Company intends to focus on commercial disputes in theΒ United StatesΒ and on international arbitration matters; in the medium term, the Company may expand its focus to other attractive and suitable jurisdictions.
In the absence of unforeseen circumstances, theΒ CompanyΒ anticipates that the net proceeds of theΒ IPOΒ should be fully invested (or committed to be invested) within 18 to 24 months of Admission.
Burford Group LimitedΒ (the "Investment Adviser") will act as Investment Adviser to the Company. The principals of the Investment Adviser are Christopher Bogart,Β Selvyn SeidelΒ and Jonathan Molot.Β Mr. Seidel has 40 years of experience as a practising litigator andΒ chairedΒ a variety of litigationΒ and arbitration activities and casesΒ for one of the largest law firms in the world. Mr. Bogart has been a practising litigator, the general counsel of a Fortune 50 corporation managing a portfolio of litigation, and an investment manager.Β Mr. Molot has been a practicing litigator, a senior advisor to the Obama Administration, a law school professor, and one of the leadingΒ USΒ experts in litigation finance and risk transfer.
The Company is chaired by Sir Peter Middleton, former Group Chairman and Group Chief Executive of Barclays Bank plc. Sir Peter is currentlyΒ UKΒ Chairman of Marsh & McLennan Companies, Chairman of Camelot Group plc and Chairman of the Centre for Effective Dispute Resolution, and also chaired a review of Civil Justice for the Blair Government.
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