Burford Capital Limited has raised $175 million (£110
million) to create the world's largest dispute financier.
The Guernsey closed-ended investment company is publicly traded
on the London Stock Exchange's Alternative Investment Market
(AIM) following from its initial public offering (IPO) in October
The company has now announced a placing of approximately $175
million (£110 million), consisting of 100 million Placing
Shares at 110 pence per share. A company statement said that
the placing will allow Burford Capital to continue its investment
programme and solidify its position as a market leader in
commercial dispute financing.
The completion of the placing is subject to shareholder approval
and the admission to trading of the shares on AIM, which is
expected to take place on or about 10 December 2010.
Christopher Bogart, Chief Executive Officer of Burford Group,
said: "We are delighted by the response of both new and
existing investors to the placing, which has significantly exceeded
our target, and very excited to have created the world's
largest dispute financier."
"I would like to welcome new shareholders in the
Company and thank our existing investors for their ongoing
support. We believe this is a continued demonstration that
investors recognise the progress of Burford Capital to date, the
attractiveness of the market opportunity and the Company's
investment strategy going forward."
Burford Group is the investment adviser to the fund which is
administered by International Administration (Guernsey) Limited.
Guernsey legal advisers are Ogier and the auditors are Ernst &
Young in Guernsey.
The company statement added that demand for capital, and the
supply of high quality investment opportunities, has enabled
capital to be committed at a significantly faster rate than
anticipated, so that over $100 million representing 80% of its
capital has now been committed to a broad portfolio of litigation
matters (over $40 million in the last quarter).
The Company has consistently advocated a portfolio approach to
investing in this asset class and its early successes affirm the
investment proposition and business model.
It believes that the investment adviser has built the
infrastructure to permit the ongoing deployment of capital rapidly
as attractive opportunities present themselves. Capital
appears to be scarce in this area, and Burford Capital is often the
capital provider of choice in a wide variety of opportunities.
The investment adviser sees continued strong demand for its
capital with an active pipeline of opportunities and continues to
pursue the investment objectives, policies and structures that were
identified at the time of IPO. The Company believes that the
remaining uncommitted proceeds from the IPO and the proceeds of the
current placing can together be committed to investments within
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