Burford Capital: Strategy for Success

Burford operates in the legal finance industry. It offers exposure to a sector that’s incredibly profitable and one which does not offer many options in the public markets.

The company has achieved a 27% IRR with its capital provision since inception in 2009. Management deployed 1.3bn dollars and has realized over 2.48bn, considering concluded cases. Curiously, this is achieved by investing in assets that are uncorrelated with one another.

Although Burford has led the industry, competition is catching up. Capital in the industry is perceived as a commodity and people fear that excess returns will vanish. In this article, I’ll dive into what is Burford’s strategy to eschew competition.