Burford Capital, litigation funder, has earned a whooping $36 million in profit on one of its cases, the largest recovery to date.
It has been reported that the company has had a 48 per cent increase in income for the half year to $40.6 million. This was possible because of a 64 per cent increase in income resulting from its litigation investment portfolio to $30.7 million. About 38 investments have triggered $299 million in gross investment recoveries and $124 million net of invested capital, concluding a 71 per cent net return on invested capital. Its largest recovery generated $61 million in gross proceeds on a $25 million investment, for a profit of $36 million and a net return on invested capital of 144 per cent.
Burford Capital has also moved into bankruptcy financing in the US and has joined hands with bankruptcy and restructuring firm, Chilmark Partners, to form a $100 million venture called Bankruptcy Litigation Funding LLC.