LONDON (ShareCast) - (Sharecast News) - Burford Capital announced the extension of its 'BOF-C' arrangement with its sovereign wealth fund strategic partner on Thursday, to 31 December 2023.

The AIM-traded firm said that, while BOF-C was "nearly full" at the end of 2021 with $633m in active commitments out of its $667m fund size, only $274m was deployed.

It said it believed BOF-C was able to support additional commitments, and so the company had agreed with the sovereign wealth fund partner (SWF) to extend the investment period by one year.

"If BOF-C reaches the point prior to the expiration of the extended investment period where we regard it as fully committed, we expect to cease allocating new matters to BOF-C," the board said in its statement.

"Until that time, we will allocate 25% of each new matter that meets the relevant investment criteria to BOF-C, and the balance sheet will take the remaining 75%.

"This change from the current 50-50 allocation permits the balance sheet to take more of each new core legal finance asset in light of Burford's recent incremental capital raise, while providing a greater diversity of matters to the SWF."

Burford's board said it was "very pleased" with the "constructive and ongoing" relationship with the SWF partner, as reflected in both the BOF-C changes, as well as in the fund's provision of a $100m sidecar facility during 2021.

At 1116 BST, shares in Burford Capital were up 0.54% at 655.5p.

Reporting by Josh White at Sharecast.com.

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