The self-proclaimed largest third party litigation funder has revealed that it increased its investment in worldwide cases by 300% in 2014.
Burford Capital Limited said in an announcement to the London stock exchange that new investment commitments in 2014 were more than three times the level of 2013.
In total, the company invested almost £100m in litigation across the world during last year.
Since incorporating in 2009, the funder says 32 investments have generated £134m in recoveries, with a 60% net return on invested capital.
Last year alone Burford secured almost £42m from its portfolio – an increase of 97% compared with 2013.
The results were part of an interim statement ahead of a full financial announcement expected in March.
Christopher Bogart, Burford’s chief excecutive (pictured), said: ‘Burford’s performance continues to validate our approach to investment selection and the quality of our team. Moreover, the volume of new commitments made during the last year shows clearly the market demand for litigation finance solutions and our leadership in meeting that demand.’
Bogart said more corporate legal departments are turning to litigation funding to increase efficiency
The company’s annual survey found litigation finance is considered a ‘useful tool’ by 72% of outside lawyers, 69% of general counsel, and 78% of chief finance officers.
In addition to the financial statement, Burford has also announced the acquisition of London-based Focus Intelligence Ltd, a firm that specializes in asset tracing and judgment enforcement.
Focus’s team of eight legal and investigative specialists will join Burford, and its co-founders Daniel Hall and Michael Redman will lead Burford’s global judgment enforcement business.
The deal will allow Burford to combine its investment business with judgment enforcement for lawyers and clients, who may win litigation claims but then face difficulties in locating assets and enforcing court rulings.