Burford Capital Limited · LSE:BUR
Burford Capital — Merger or Acquisition (December 2016)
8 slides from Burford Capital's merger presentation, December 2016
Slide 1: Acquisition of Gerchen Keller Capital
Acquisition of Gerchen Keller Capital Burford Capital Limited Investor Presentation December 2016
Slide 2: Transaction highlights
Transaction highlights Creation of the global leader in legal finance • Burford to acquire GKC Holdings, LLC (“GKC”), the parent of Gerchen Keller Capital, LLC, a leading US litigation finance investment manager with $1.3 billion AUM • $160 million in consideration at closing: – $93.75 million in ca
Slide 3: Global leader in litigation finance
Global leader in litigation finance Combination yields scale, revenue and capital diversification Scale Revenue Diversification Industry leader with combined $1.2 billion in current Ongoing management and performance fees investment assets and commitments alongside investment income Broadened
Slide 4: Benefits of multiple capital sources
Benefits of multiple capital sources Management fees: 1 – 2% Annually Investment returns Burford Capital Performance fees: 15 – 50% Carry (1) Burford Capital Gerchen Keller Capital Pre-Settlement Post- Other “Litigation Finance” Settlement Investments Litigation New ATE Insurance Finance Initiatives
Slide 5: Overview of GKC fund investments
Overview of GKC fund investments Pre-Settlement Post-Settlement Other Investments “Litigation Finance” Investor $717 million (1) $416 million (1) $300 million (2) commitments Weighted average 1.4% 1.6% (3) N/A management fee Weighted average 23.0% 20.0% (4) N/A performance fee IRR on early concluded
Slide 6: Illustrative earnings from investment
Illustrative earnings from investment Economics of a hypothetical $100 investment in a GKC fund Key Inputs Financial Impact A Amount of capital invested $100 Yearly Management Fee B Weighted average management fee 1.4% A B $1.40 C GKC’s ROIC 52% $100 1.4% D Burford’s ROIC 70% E Weighted average perf
Slide 7: Summary
Summary Creation of the global leader in legal finance • Clear strategic rationale with GKC acquisition delivering compelling scale and diversification benefits • Transaction immediately EPS accretive and expected to accelerate future earnings growth • Combination expands Burford’s access to capital
Slide 8: Notice and Disclaimer
NOTICE AND DISCLAIMER: This presentation (“Presentation”) does not constitute or form part of, and should not be construed as solicitation of any offer or invitation to acquire or dispose of any shares or other securities of Burford Capital Limited (the “Company”) nor should it or any part of it for
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