BUR, page-8

Hi Jimmy_C

Thank you for the analysis on wages.

Can you think why there is % decline in the capitalisation of wages? Seems odd to me that a congruent accounting policy would over time change so much?

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I've being spending more time on Burford Capital.

I'll report back - If I find anything worth saying. I believe pg 16 - pg 22 of the Burford 2016 financials should be compulsory reading to anyone who expects to invest in the litigation finance industry 'going forward'. Well at least if they plan to understand the US "Fund Management" of Closed End Investment Funds in the litigation industry.

I am struggling...

Straight off the bat - the Gerchen Keller Corporation GKC operation was purchased for USD $160 million with a further $15 million contingent on future business. GKC had 20 members. That's $8 million per partner on average, with $750 thousand each as an after dinner mint. Undoubtedly most of that accrues to Ashley Keller, Adam Gretchen & Travis Lenkner US pioneers on the litigation funding industry & who become the Presidents of Burfords USA.

These three represent expensive acquisitions, but I imagine the type of leadership that could be needed by IMF-ASX.

I believe where IMF.ASX leans on FIG (NYSE) Burford will discover, for want of a term, its own financiers for its closed-end investment funds. I imagine IMF.ASX felt less secure to foot this field on their virginal own?

Some back of a cigarette pack sums are - GKC had three Partners Funds that are included as a component to the GFC purchase. The three GKC Funds come with USD $800 million in committed capital. The expectation is that these will return 52% - the aggregate ROIC and GKC performance fee in the range of 23% an expected return in the region of say USD $96. The workings are rough, as there are transition clauses, and only future business will accrue 100% to BUR.L

But the GKC acquistion premium, if this thumb calculation any sort of approximation, in the USD $ 60 million ball park.

Management Fees will accrue immediately to BUR.L too, but I assume a large proportion will actually go on management's ongoing expense.