World’s largest litigation funder formed

Burford Capital acquires GKC Holdings, the parent of its rival Gerchen Keller Capital

World’s largest litigation funder formed
Burford Capital has confirmed that its acquisition of GKC Holdings, the parent of its Chicago-based rival Gerchen Keller Capital, is complete.
 
The deal is worth US$160 million (about $214.22 million) in a mix of cash, shares and loan notes creates what Burford claims is the largest legal financier in the world. There is also a US$15 million (about $20 million) performance-based bonus contingent on GKC contributing US$100 million (about $133.89 million) in income.
 
“We know each other well and we approach the legal market in similar ways,” said Burford CEO Christopher Bogart.
 
“The opportunity to combine the largest public player and the largest private capital manager is unique and will create the clear leader in this rapidly growing and evolving industry,” added the former Time Warner VP and general counsel.
 
The combined firm, which will use the Burford name, will have US$1.2 billion (about $1.61 billion) in investments under management and 80 staff including 40 lawyers. Since their inceptions, the firms have committed more than US$2 billion (about $2.68 billion) to investments.
 
Registered investment adviser Gerchen Keller has US$1.3 billion (about $1.74 billion) in assets raised from public pensions, financial institutions, university endowments, foundations and family wealth offices.
 
“Our firms share similar cultures and ambitions, and we are looking forward to all of the exciting things we can do together for the benefit of all of our investors and clients,” said GKC CEO Adam Gerchen.
 
GKC principals are subject to a three-year lock-up period and multi-year non-compete agreements.
 

Related stories:
More law firms start trading uncollected billings for cash
Litigation backer believes Brexit bodes business boon
 

Recent articles & video

Ashurst, Sullivan & Cromwell guide Alcoa Corp acquisition of Alumina Limited

KWM snags Clayton Utz partner for ERS practice

Federal Court denies Medibank's request to restrain Australian Information Commissioner

Search for the best specialised law firms

Addisons corporate star commences with Keypoint Law

CIE Legal partner on lawyers needing to chill out

Most Read Articles

DLA Piper guides $9bn cross-border acquisition

Ashurst lures Corrs gender equality head

Gadens adds five partners in Melbourne, Sydney

Women’s Legal Services Australia executive officer on why gender inequality is still a challenge