Burford Capital
TypePublic
LSE: BUR
NYSE: BUR
IndustryFinancial services
Founded2009 (2009)
FoundersChristopher Bogart
Jonathan Molot
HeadquartersGuernsey
New York City
Chicago
London
Key people
Christopher Bogart (CEO)[1]
Jonathan Molot (CIO)
ProductsLitigation finance
Websitewww.burfordcapital.com

Burford Capital, founded in 2009, provides specialized finance to the legal market.[2] It operates as a finance and professional services company worldwide with principal offices in New York, London and Chicago. The company offers financing to lawyers and clients engaged in litigation and arbitration,[3] asset recovery and other legal finance and advisory activities.[4]

History

Burford was founded by Christopher Bogart as a way to fund legal cases. The company was launched with Jonathan Molot in 2009.[5]

Burford has been publicly traded on the London AIM Stock Exchange (BUR:LN) [6] since October 2009 and issued further shares in a follow-on in 2010. In 2017, Burford received the AIM Award for Innovative Fundraising of the Year.[7]

On 7 August 2019, Muddy Waters Research cited issues[8][9] with Burford's fair value accounting practices and of misrepresenting its returns on invested capital and rates of return.[10] [11] Burford responded to each of the seven claims made by Muddy Waters, raising what it called “many factual inaccuracies”.[12] On 12 August 2019, Burford alleged it had identified evidence consistent with “illegal market manipulation” of its shares in the run up to a short attack.[13] Three days later, on 15 August 2019, Burford announced the replacement of its chief finance officer, the spouse of the chief executive officer.[14]

On 21 June 2021, Burford Capital announced it had successfully been paid $103m USD, resulting from the divorce settlement between Farkhad Akhmedov, a Russian businessman and Tatiana Akhmedova. [15] Bloomberg claims the total settlement was $186m USD. Burford Capital were successful in financing the litigation and were paid over 55% of the total settlement, which contributed $20m to its 2021 operating profit, according to Burford Capital. [16][17]

References

  1. ↑ "Q&A with litigation financier Chris Bogart". New York Business Journal. Retrieved 14 August 2015.
  2. ↑ "What Do You Get if You Cross a Lawyer With a Banker?". Bloomberg.com. 2018-06-11. Retrieved 2018-06-11.
  3. ↑ "Burford Capital Ltd (BUR:London Stock Exchange)". Bloomberg. Retrieved 14 August 2015.
  4. ↑ "N+1 Singer Begins Coverage on Burford Capital Limited (BUR)". WKRB. Retrieved 14 August 2015.
  5. ↑ Kinder, Tabby; Beioley, Kate (9 August 2019). "Behind Burford Capital: the litigation funder under siege". Financial Times. Retrieved 19 December 2019.
  6. ↑ "BUR BURFORD CAPITAL LIMITED ORD NPV". London Stock Exchange. Archived from the original on 2015-09-07. Retrieved 14 August 2015.
  7. ↑ "Best AIM companies of 2017 confirmed". Interactive Investor. Retrieved 2018-02-16.
  8. ↑ "Burford Capital attacks short sellers as shares plunge 40 per cent". City A.M. 7 August 2019. Retrieved 7 August 2019.
  9. ↑ Russell, Harriet; O'Dwyer, Michael (7 August 2019). "Short seller Muddy Waters attacks litigation funder Burford Capital". The Telegraph. Retrieved 7 August 2019.
  10. ↑ "Muddy Waters criticises Burford Capital: the report unspun". The Times. Retrieved 8 August 2019.
  11. ↑ "Shares crash as short seller Muddy Waters savages Burford Capital". City A.M. 7 August 2019. Retrieved 12 September 2019.
  12. ↑ "Clarity on Burford Capital is needed after Muddy Waters treatment". The Guardian. 7 August 2019. Retrieved 12 September 2019.
  13. ↑ "Burford Capital alleges illegal market manipulation". The Times. 12 August 2019. Retrieved 12 September 2019.
  14. ↑ "Burford Capital ditches finance chief in response to activist pressure". City A.M. 15 August 2019. Retrieved 12 September 2019.
  15. ↑ "Legal financiers paid £75m for role in Russian billionaire divorce battle". The Independent. 2021-07-16. Retrieved 2022-05-17.
  16. ↑ Burford Capital Website. "Akhmedov Judgment Enforcement Resolution". Burford Capital. Retrieved 2022-05-17.
  17. ↑ "Billionaire Ends Largest U.K. Divorce With $186 Million Deal". Bloomberg.com. 2021-07-16. Retrieved 2022-05-17.
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