NEW
YORK, Nov. 7, 2024 /PRNewswire/ -- Burford
Capital Limited ("Burford"), the leading global finance and asset
management firm focused on law, today announces its unaudited
financial results at and for the three and nine months ended
September 30, 2024.
In addition, Burford has made available an accompanying three
and nine months ended September 30,
2024 results presentation on its website at
http://investors.burfordcapital.com.
|
Christopher Bogart,
Chief Executive Officer of Burford Capital,
commented:
|
|
"We are having a great
year as we enjoy the long-awaited momentum in the portfolio. We
have generated $556 million in Burford-only cash receipts YTD24 and
$310 million just in 3Q24, setting new records. Our core portfolio
net realized gains are already in line with the previous annual
peak, with $184 million in YTD24 up 49% from YTD23, and $56 million
in 3Q24, around twice the level of the 2023 and 2022 third
quarters. Net realized gains in YTD24 reflect a ROIC of 94% on
realizations which remains above our historical track record. We
reported Burford-only net income attributable to shareholders of
$136 million in 3Q24 and grew tangible book value to more than $10
per share for the first time. And despite the team being focused on
the very active portfolio, new commitments are up substantially in
3Q24 over 3Q23."
|
Consolidated financial results
|
|
|
|
|
|
|
|
|
|
Summary statements
of operations
|
|
Nine months
ended
September
30,
|
|
Three months
ended
September
30,
|
|
Consolidated (US
GAAP)
($ in thousands, except
per share data)
|
2024
|
2023
|
%
change
|
|
2024
|
2023
|
%
change
|
|
Capital provision
income
|
469,494
|
1,016,113
|
-54 %
|
|
270,988
|
504,513
|
-46 %
|
|
Asset management
income
|
6,654
|
5,767
|
15 %
|
|
3,147
|
1,876
|
68 %
|
|
Total
revenues
|
453,062
|
794,329
|
-43 %
|
|
249,114
|
368,873
|
-32 %
|
|
Total operating
expenses
|
115,182
|
150,999
|
-24 %
|
|
46,893
|
53,068
|
-12 %
|
|
Net income/(loss)
attributable to Burford Capital Limited shareholders
|
159,452
|
510,427
|
-69 %
|
|
135,643
|
272,542
|
-50 %
|
|
Per diluted ordinary
share
|
0.71
|
2.29
|
-69 %
|
|
0.61
|
1.22
|
-50 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary statements
of financial position
|
|
Consolidated (US
GAAP)
($ in thousands, except
per share data)
|
September 30,
2024
|
December 31,
2023
|
%
change
|
|
Capital provision
assets
|
5,356,300
|
5,045,388
|
6 %
|
|
Total Burford
Capital Limited equity
|
2,432,109
|
2,290,858
|
6 %
|
|
Book value per ordinary
share
|
11.08
|
10.46
|
6 %
|
|
Non-controlling
interests
|
865,242
|
916,922
|
-6 %
|
|
Total shareholders'
equity
|
3,297,351
|
3,207,780
|
3 %
|
|
Total liabilities
and shareholders' equity
|
6,274,902
|
5,837,394
|
7 %
|
|
|
|
|
|
|
In this
announcement, references to "3Q24" and "YTD24" are to Burford's
financial results for the three and nine months ended September 30,
2024, respectively, and references to "3Q23" and "YTD23" are to
Burford's financial results for the three and nine months ended
September 30, 2023, respectively. All figures in this announcement
are presented on an unaudited consolidated basis in accordance with
the generally accepted accounting principles in the United States
("US GAAP"), unless otherwise stated. Figures at and for the three
and nine months ended September 30, 2024 are not necessarily
indicative of the results that may be expected for the full year
ending December 31, 2024.
In addition, in this
announcement, the term "core portfolio" refers to Burford-only
capital provision direct.
Definitions,
reconciliations and information additional to those set forth in
this announcement are available on Burford's website at
http://investors.burfordcapital.com.
|
Burford-only operational and financial review
(non-GAAP)
|
Selected
metrics1
|
|
Nine months ended
September 30,
|
|
Three months ended
September 30,
|
|
Burford-only
(non-GAAP)
($ in
thousands)
|
2024
|
2023
|
%
change
|
|
2024
|
2023
|
%
change
|
|
Net realized
gains/(losses)
|
184,164
|
123,539
|
49 %
|
|
56,257
|
29,145
|
93 %
|
|
Realizations
|
380,442
|
274,101
|
39 %
|
|
164,704
|
79,158
|
108 %
|
|
Cash
receipts2
|
555,548
|
379,732
|
46 %
|
|
310,491
|
132,794
|
134 %
|
|
Deployments
|
263,103
|
304,432
|
-14 %
|
|
72,277
|
55,986
|
29 %
|
|
New
commitments
|
443,451
|
448,682
|
-1 %
|
|
100,861
|
17,648
|
472 %
|
|
1 Represents
Burford-only capital provision-direct, unless noted
otherwise.
|
|
2 Represents
Burford-only proceeds from capital provision-direct, capital
provision-indirect and asset management and other
services.
|
|
|
Group-wide
(non-GAAP)
($ in
thousands)
|
September 30,
2024
|
December 31,
2023
|
%
change
|
|
Total
portfolio
|
7,478,292
|
7,170,308
|
4 %
|
|
|
|
|
|
- Realizations are on a record annual pace in 2024
- Core portfolio realizations of $380
million in YTD24 up 39% compared to YTD23 and diversified
across 40 assets
- We continue to see progress in clearing the pandemic-driven
backlog with about half of the capital provision assets generating
realizations in YTD24 being from 2020 and prior vintages
- During YTD24, 10 assets have each generated more than
$10 million in realizations, with
five of those assets each delivering $20
million or more
- Net realized gains through 3Q24 are already near record annual
levels
- Core portfolio net realized gains of $184 million in YTD24 up 49% compared to YTD23,
already in line with the previous annual peak of $186 million achieved in the full year 2023
- YTD24 net realized gains reflect a ROIC of 94% on YTD24
realizations which remains above our historical track record
- Record cash generation underscores portfolio progress and
healthy liquidity
- Cash receipts of $310 million in
3Q24 and $556 million in YTD24 driven
by realizations, collection of receivables and asset management
income
- New business remains solid
- Core portfolio new commitments of $443
million and deployments of $263
million in YTD24 remain on a consistent pace even as
substantial portfolio activity places demands on team
resources
- Definitive undrawn commitments of $727
million at September 30, 2024
up 25% in YTD24 and support deployment activity looking
forward
|
Selected financial
metrics
|
|
Nine months
ended
September
30,
|
|
Three months
ended
September
30,
|
|
Burford-only
(non-GAAP)
($ in thousands, except
per share data)
|
2024
|
2023
|
%
change
|
|
2024
|
2023
|
%
change
|
|
Total
revenues
|
394,688
|
725,927
|
-46 %
|
|
226,033
|
344,013
|
-34 %
|
|
Total operating
expenses
|
112,977
|
150,377
|
-25 %
|
|
46,011
|
52,801
|
-13 %
|
|
Operating
income/(loss)
|
281,711
|
575,550
|
-51 %
|
|
180,022
|
291,212
|
-38 %
|
|
Net
income/(loss)
|
159,452
|
510,427
|
-69 %
|
|
135,643
|
272,542
|
-50 %
|
|
|
|
|
|
|
|
|
|
Burford-only
(non-GAAP)
($ in thousands, except
per share data)
|
September 30,
2024
|
December 31,
2023
|
$
change
|
%
change
|
|
Tangible book value
attributable to Burford Capital Limited
|
2,298,094
|
2,156,893
|
141,201
|
7 %
|
|
Tangible book value
attributable to Burford Capital Limited per ordinary
share
|
10.47
|
9.85
|
0.62
|
6 %
|
|
|
|
|
|
|
- Net income in 3Q24 accelerated relative to the first half of
the year
- 3Q24 net income attributable to Burford Capital Limited
shareholders of $136 million, or
$0.61 per diluted share
- 3Q23 and YTD23 results benefited from substantial positive
impact of YPF-related capital provision income, which impacts 3Q24
and YTD24 comparisons
- Within total revenues, 3Q24 was a strong quarter for capital
provision income, which is up significantly from prior year,
excluding YPF-related assets impact
- 3Q24 Burford-only capital provision income of $205 million was driven, among other things, by
positive impact across the major valuation inputs of discount
rates, case milestones and duration
- Excluding YPF-related assets, which heavily impacted 2023
results, Burford-only total net realized and unrealized gains were
up 200% in 3Q24 and 17% in YTD24 compared to 3Q23 and YTD23,
respectively
|
Selected portfolio
metrics
|
|
Burford-only
(non-GAAP)
($ in
thousands)
|
September 30,
2024
|
December 31,
2023
|
$
change
|
%
change
|
|
Deployed
cost
|
1,645,667
|
1,573,531
|
72,136
|
5 %
|
|
Plus: Fair value
adjustments
|
1,967,677
|
1,814,070
|
153,607
|
8 %
|
|
Fair value
|
3,613,344
|
3,387,601
|
225,743
|
7 %
|
|
Undrawn
commitments
|
1,562,125
|
1,396,061
|
166,064
|
12 %
|
|
Total capital
provision-direct portfolio
|
5,175,469
|
4,783,662
|
391,807
|
8 %
|
|
Total capital provision
portfolio1
|
5,215,932
|
4,840,117
|
375,815
|
8 %
|
|
1 Represents capital
provision-direct and capital provision-indirect.
|
|
- Strong returns on realizations in YTD24 drove an increase in
the cumulative ROIC since inception from Burford-only capital
provision-direct assets from 82% at December
31, 2023 to 84%, while cumulative IRR declined by 40 basis
points to 26% reflecting extended duration of certain assets
(December 31, 2023: 27%)
|
Liquidity and
capital
|
|
|
|
|
|
|
Burford-only
(non-GAAP)
($ in
thousands)
|
September 30,
2024
|
December 31,
2023
|
$
change
|
%
change
|
|
Liquidity
|
|
|
|
|
|
Cash and cash
equivalents
|
553,158
|
195,915
|
357,243
|
182 %
|
|
Marketable
securities
|
75,801
|
107,561
|
(31,760)
|
-30 %
|
|
Total
liquidity
|
628,959
|
303,476
|
325,483
|
107 %
|
|
Due from settlement
of capital provision assets
|
64,489
|
185,267
|
(120,778)
|
-65 %
|
|
|
|
|
|
- Burford-only cash and cash equivalents and marketable
securities of $629 million at
September 30, 2024 (December 31, 2023: $303
million)
- Strong liquidity position at September
30, 2024 augmented by $556
million of Burford-only cash receipts in YTD24 and
$275 million add-on offering to 2031
senior notes in January 2024
- Burford-only due from settlement of capital provision assets of
$64 million at September 30, 2024 (December 31, 2023: $185
million), with 95% of December 31,
2023 balance collected in YTD24
- Total debt outstanding of $1.8
billion at September 30, 2024
(December 31, 2023: $1.6 billion)
- Leverage remains well below covenant ceiling levels
Investor and analyst conference call
Burford will hold a conference call for investors and analysts
at 10.00am EST / 3.00pm GMT on
Thursday, November 7, 2024. The
dial-in numbers for the conference call are +1 (646) 307-1963
(USA) or +1 (800) 715-9871
(USA & Canada toll free) / +44 (0)20 3481 4247 (UK)
or +44 800 260 6466 (UK toll free) and the access code is 1730316.
To minimize the risk of delayed access, participants are urged to
dial into the conference call by 9.40am
EST / 2.40pm GMT.
A live webcast of the call will also be available at
https://events.q4inc.com/attendee/431913320, and pre-registration
at that link is encouraged.
An accompanying 3Q24 results presentation for investors and
analysts will also be made available on Burford's website prior to
the conference call at http://investors.burfordcapital.com.
Following the conference call, a replay facility for this event
will be accessible through the webcast at
https://events.q4inc.com/attendee/431913320.
For further information, please contact:
|
Burford Capital
Limited
|
|
|
For investor and
analyst inquiries:
|
|
|
Americas: Josh Wood,
Head of Investor Relations - email
|
+1 212 516
5824
|
|
EMEA & Asia: Rob
Bailhache, Head of EMEA & Asia Investor Relations -
email
|
+44 (0)20 3530
2023
|
|
For press
inquiries:
|
|
|
David Helfenbein, Vice
President, Public Relations - email
|
+1 (212) 516
5824
|
|
|
|
Deutsche Numis -
NOMAD and Joint Broker
|
+44 (0)20 7260
1000
|
|
Giles Rolls
|
|
|
Charlie
Farquhar
|
|
|
|
|
Jefferies
International Limited - Joint Broker
|
+44 (0)20 7029
8000
|
|
Graham
Davidson
|
|
|
James Umbers
|
|
|
|
|
Berenberg –
Joint Broker
|
+44 (0)20 3207
7800
|
|
Toby Flaux
|
|
|
James
Thompson
|
|
|
Yasmina
Benchekroun
|
|
About Burford Capital
Burford Capital is the leading
global finance and asset management firm focused on law. Its
businesses include litigation finance and risk management, asset
recovery and a wide range of legal finance and advisory activities.
Burford is publicly traded on the New York Stock Exchange (NYSE:
BUR) and the London Stock Exchange (LSE: BUR), and it works with
companies and law firms around the world from its offices in
New York, London, Chicago, Washington,
DC, Singapore,
Dubai and
Hong Kong.
For more information, please visit www.burfordcapital.com.
Summary financial statements and reconciliations
The tables below set forth summaries of the condensed
consolidated and Burford-only statements of operations for the
three and nine months ended September 30,
2024 and 2023, the condensed consolidated and Burford-only
statements of financial position at September 30, 2024 and December 31, 2023 and corresponding
reconciliations from consolidated to Burford-only financial
results. Furthermore, the tables below set forth certain additional
reconciliations for financial information contained in this
announcement.
Summary condensed consolidated statements of
operations
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
September
30,
|
|
Nine months
ended
September
30,
|
|
($ in
thousands)
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
Capital provision
income/(loss)
|
|
270,988
|
|
504,513
|
|
469,494
|
|
1,016,113
|
|
(Less)/Plus:
Third-party interests in capital
provision
assets
|
|
(35,152)
|
|
(140,412)
|
|
(46,640)
|
|
(235,944)
|
|
Asset management
income/(loss)
|
|
3,147
|
|
1,876
|
|
6,654
|
|
5,767
|
|
Services and other
income/(loss)
|
|
10,131
|
|
2,896
|
|
23,554
|
|
8,393
|
|
Total
revenues
|
|
249,114
|
|
368,873
|
|
453,062
|
|
794,329
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
46,893
|
|
53,068
|
|
115,182
|
|
150,999
|
|
|
|
|
|
|
|
|
|
|
Operating
income/(loss)
|
|
202,221
|
|
315,805
|
|
337,880
|
|
643,330
|
|
|
|
|
|
|
|
|
|
|
Finance costs and loss
on debt extinguishment
|
|
34,399
|
|
29,013
|
|
101,432
|
|
70,690
|
|
Foreign currency
transactions (gains)/losses
|
|
(1,510)
|
|
(9,811)
|
|
(951)
|
|
(21,149)
|
|
|
|
|
|
|
|
|
|
|
Income/(loss) before
income taxes
|
|
169,332
|
|
296,603
|
|
237,399
|
|
593,789
|
|
|
|
|
|
|
|
|
|
|
Benefit from/(provision
for) income taxes
|
|
(11,468)
|
|
531
|
|
(21,761)
|
|
(15,550)
|
|
Net
income/(loss)
|
|
157,864
|
|
297,134
|
|
215,638
|
|
578,239
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss)
attributable to Burford Capital Limited shareholders
|
|
135,643
|
|
272,542
|
|
159,452
|
|
510,427
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss)
attributable to Burford Capital Limited shareholders per ordinary
share
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$0.62
|
|
$1.24
|
|
$0.73
|
|
$2.33
|
|
Diluted
|
|
$0.61
|
|
$1.22
|
|
$0.71
|
|
$2.29
|
Summary Burford-only statement of operations
|
|
Three months
ended
September
30,
|
Nine months
ended
September
30,
|
|
($ in
thousands)
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
Capital provision
income
|
|
204,961
|
|
324,995
|
|
342,224
|
|
676,402
|
|
Asset management
income
|
|
11,110
|
|
16,141
|
|
29,270
|
|
41,182
|
|
Services and other
income
|
|
9,962
|
|
2,877
|
|
23,194
|
|
8,343
|
|
Total
revenues
|
|
226,033
|
|
344,013
|
|
394,688
|
|
725,927
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
46,011
|
|
52,801
|
|
112,977
|
|
150,377
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
180,022
|
|
291,212
|
|
281,711
|
|
575,550
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
135,643
|
|
272,542
|
|
159,452
|
|
510,427
|
|
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$0.62
|
|
$1.24
|
|
$0.73
|
|
$2.33
|
|
Diluted
|
|
$0.61
|
|
$1.22
|
|
$0.71
|
|
$2.29
|
Reconciliation of summary condensed consolidated statement of
operations to summary Burford-only statement of operations
|
|
|
|
|
|
|
|
|
Three months ended
September 30, 2024
|
|
(GAAP)
|
(Non-GAAP)
|
|
|
Elimination of
third-party interests
|
|
|
($ in
thousands)
|
Consolidated
|
|
BOF-C
|
Colorado
|
Advantage
Fund
|
Other
|
Burford-
only
|
|
Capital provision
income
|
270,988
|
|
(18,742)
|
(34,546)
|
(10,257)
|
(2,482)
|
204,961
|
|
(Less): Third-party
interests in capital provision assets
|
(35,152)
|
|
-
|
34,518
|
-
|
634
|
-
|
|
Asset management
income
|
3,147
|
|
7,963
|
-
|
-
|
-
|
11,110
|
|
Services and other
income
|
10,131
|
|
(165)
|
-
|
-
|
(4)
|
9,962
|
|
Total
revenues
|
249,114
|
|
(10,944)
|
(28)
|
(10,257)
|
(1,852)
|
226,033
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
46,893
|
|
62
|
(28)
|
(96)
|
(820)
|
46,011
|
|
|
|
|
|
|
|
|
|
Operating
income
|
202,221
|
|
(11,006)
|
-
|
(10,161)
|
(1,032)
|
180,022
|
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
157,864
|
|
(11,006)
|
-
|
(10,161)
|
(1,054)
|
135,643
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30, 2023
|
|
(GAAP)
|
(Non-GAAP)
|
|
|
Elimination of
third-party interests
|
|
|
($ in
thousands)
|
Consolidated
|
Strategic
Value Fund
|
BOF-C
|
Colorado
|
Advantage
Fund
|
Other
|
Burford-
only
|
|
Capital provision
income
|
540,513
|
(845)
|
(36,193)
|
(140,690)
|
(8,368)
|
6,578
|
324,995
|
|
(Less): Third-party
interests in capital provision assets
|
(140,412)
|
-
|
-
|
140,699
|
-
|
(287)
|
-
|
|
Asset management
income
|
1,876
|
16
|
14,249
|
-
|
-
|
-
|
16,141
|
|
Services and other
income
|
2,896
|
(1)
|
(3)
|
-
|
-
|
(15)
|
2,877
|
|
Total
revenues
|
368,873
|
(830)
|
(21,947)
|
9
|
(8,368)
|
6,276
|
344,013
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
53,068
|
(637)
|
73
|
9
|
(76)
|
364
|
52,801
|
|
|
|
|
|
|
|
|
|
Operating
income
|
315,805
|
(193)
|
(22,020)
|
-
|
(8,292)
|
5,912
|
291,212
|
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
297,134
|
(193)
|
(22,020)
|
-
|
(8,292)
|
5,913
|
272,542
|
|
Nine months ended
September 30, 2024
|
|
(GAAP)
|
(Non-GAAP)
|
|
|
Elimination of
third-party interests
|
|
|
($ in
thousands)
|
Consolidated
|
|
BOF-C
|
Colorado
|
Advantage
Fund
|
Other
|
Burford-
only
|
|
Capital provision
income
|
469,494
|
|
(51,760)
|
(47,372)
|
(23,302)
|
(4,836)
|
342,224
|
|
(Less): Third-party
interests in capital provision assets
|
(46,640)
|
|
-
|
47,272
|
-
|
(632)
|
-
|
|
Asset management
income
|
6,654
|
|
22,616
|
-
|
-
|
-
|
29,270
|
|
Services and other
income
|
23,554
|
|
(350)
|
-
|
-
|
(10)
|
23,194
|
|
Total
revenues
|
453,062
|
|
(29,494)
|
(100)
|
(23,302)
|
(5,478)
|
394,688
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
115,182
|
|
152
|
(100)
|
(370)
|
(1,887)
|
112,977
|
|
|
|
|
|
|
|
|
|
Operating
income
|
337,880
|
|
(29,646)
|
-
|
(22,932)
|
(3,591)
|
281,711
|
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
215,638
|
|
(29,646)
|
-
|
(22,932)
|
(3,608)
|
159,452
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 30, 2023
|
|
(GAAP)
|
(Non-GAAP)
|
|
|
Elimination of
third-party interests
|
|
|
($ in
thousands)
|
Consolidated
|
Strategic
Value Fund
|
BOF-C
|
Colorado
|
Advantage
Fund
|
Other
|
Burford-
only
|
|
Capital provision
income
|
1,016,113
|
(1,052)
|
(84,429)
|
(235,731)
|
(20,373)
|
(1,874)
|
676,402
|
|
(Less): Third-party
interests in capital provision assets
|
(235,944)
|
-
|
-
|
235,710
|
-
|
234
|
-
|
|
Asset management
income
|
5,767
|
108
|
35,307
|
-
|
-
|
-
|
41,182
|
|
Services and other
income
|
8,393
|
(1)
|
(5)
|
-
|
-
|
(44)
|
8,343
|
|
Total
revenues
|
794,329
|
(945)
|
(49,127)
|
(21)
|
(20,373)
|
(2,064)
|
725,927
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
150,999
|
(933)
|
290
|
(21)
|
(279)
|
(321)
|
150,377
|
|
|
|
|
|
|
|
|
|
Operating
income
|
643,330
|
(12)
|
(49,417)
|
-
|
(20,094)
|
(1,743)
|
575,550
|
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
578,239
|
(12)
|
(49,417)
|
-
|
(20,094)
|
(1,711)
|
510,427
|
Summary condensed consolidated statement of financial
position
|
|
|
|
|
|
|
|
|
|
|
($ in
thousands)
|
|
September
30,
2024
|
|
December
31,
2023
|
|
|
|
|
|
|
Total assets
|
|
6,274,902
|
|
5,837,394
|
|
|
|
|
|
|
Total
liabilities
|
|
2,977,551
|
|
2,629,614
|
|
|
|
|
|
|
Total Burford
Capital Limited equity
|
|
2,432,109
|
|
2,290,858
|
|
|
|
|
|
|
Non-controlling
interests
|
|
865,242
|
|
916,922
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
3,297,351
|
|
3,207,780
|
|
|
|
|
|
|
Basic ordinary shares
outstanding
|
|
219,421,376
|
|
218,962,441
|
|
|
|
|
|
|
Total shareholders'
equity attributable to Burford Capital Limited per basic ordinary
share
|
|
11.08
|
|
10.46
|
|
Total shareholders'
equity per basic ordinary share
|
|
15.03
|
|
14.65
|
Reconciliation of summary consolidated statement of financial
position to summary Burford-only statement of financial
position
|
|
|
|
|
|
|
|
|
September
30, 2024
|
|
(GAAP)
|
(Non-GAAP)
|
|
|
Elimination of
third-party interests
|
|
|
($ in
thousands)
|
Consolidated
|
BOF-C
|
Colorado
|
Advantage
Fund
|
Other
|
Burford-
only
|
|
|
|
|
|
|
|
|
Total assets
|
6,274,902
|
(602,059)
|
(733,574)
|
(199,160)
|
(81,977)
|
4,658,132
|
|
|
|
|
|
|
|
|
Total
liabilities
|
2,977,551
|
-
|
(733,574)
|
(52)
|
(17,902)
|
2,226,023
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
3,297,351
|
(602,059)
|
-
|
(199,108)
|
(64,075)
|
2,432,109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2023
|
|
(GAAP)
|
(Non-GAAP)
|
|
|
Elimination of
third-party interests
|
|
|
($ in
thousands)
|
Consolidated
|
BOF-C
|
Colorado
|
Advantage
Fund
|
Other
|
Burford-
only
|
|
|
|
|
|
|
|
|
Total assets
|
5,837,394
|
(634,239)
|
(686,304)
|
(222,413)
|
(78,574)
|
4,215,864
|
|
|
|
|
|
|
|
|
Total
liabilities
|
2,629,614
|
-
|
(686,304)
|
(100)
|
(18,204)
|
1,925,006
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
3,207,780
|
(634,239)
|
-
|
(222,313)
|
(60,370)
|
2,290,858
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of components of realizations from a
consolidated basis to a Group-wide basis
|
Three months ended
September 30, 2024
|
|
(GAAP)
|
|
(Non-GAAP)
|
|
($ in
thousands)
|
Consolidated
|
|
Eliminations
and
adjustments
|
Burford-
only
|
Other
funds
|
BOF-C
|
Group-wide
|
|
Capital
provision-direct
|
231,891
|
|
(67,187)
|
164,704
|
58,567
|
33,431
|
256,702
|
|
Capital
provision-indirect
|
22,274
|
|
(18,562)
|
3,712
|
18,562
|
-
|
22,274
|
|
Post-settlement
|
-
|
|
-
|
-
|
34,940
|
-
|
34,940
|
|
Total
realizations
|
254,165
|
|
(85,749)
|
168,416
|
112,069
|
33,431
|
313,916
|
|
Three months ended
September 30, 2023
|
|
(GAAP)
|
|
(Non-GAAP)
|
|
($ in
thousands)
|
Consolidated
|
|
Eliminations
and
adjustments
|
Burford-
only
|
Other
funds
|
BOF-C
|
Group-wide
|
|
Capital
provision-direct
|
89,162
|
|
(10,004)
|
79,158
|
16,539
|
12,243
|
107,940
|
|
Capital
provision-indirect
|
19,575
|
|
(6,228)
|
13,347
|
6,228
|
-
|
19,575
|
|
Post-settlement
|
-
|
|
-
|
-
|
20,050
|
-
|
20,050
|
|
Total
realizations
|
108,737
|
|
(16,232)
|
92,505
|
42,817
|
12,243
|
147,565
|
|
Nine months ended
September 30, 2024
|
|
(GAAP)
|
|
(Non-GAAP)
|
|
($ in
thousands)
|
Consolidated
|
|
Eliminations
and
adjustments
|
Burford-
only
|
Other
funds
|
BOF-C
|
Group-wide
|
|
Capital
provision-direct
|
515,475
|
|
(135,033)
|
380,442
|
124,912
|
88,152
|
593,506
|
|
Capital
provision-indirect
|
43,544
|
|
(36,287)
|
7,257
|
36,287
|
-
|
43,544
|
|
Post-settlement
|
-
|
|
-
|
-
|
87,442
|
-
|
87,442
|
|
Total
realizations
|
559,019
|
|
(171,320)
|
387,699
|
248,641
|
88,152
|
724,492
|
|
Nine months ended
September 30, 2023
|
|
(GAAP)
|
|
(Non-GAAP)
|
|
($ in
thousands)
|
Consolidated
|
|
Eliminations
and
adjustments
|
Burford-
only
|
Other
funds
|
BOF-C
|
Group-wide
|
|
Capital
provision-direct
|
335,414
|
|
(61,313)
|
274,101
|
89,915
|
64,944
|
429,010
|
|
Capital
provision-indirect
|
59,219
|
|
(39,317)
|
19,902
|
39,002
|
-
|
58,904
|
|
Post-settlement
|
-
|
|
-
|
-
|
118,307
|
-
|
118,307
|
|
Total
realizations
|
394,633
|
|
(100,630)
|
294,003
|
247,224
|
64,944
|
606,221
|
Reconciliation of components of deployments from a
consolidated basis to a Group-wide basis
|
Three months ended
September 30, 2024
|
|
(GAAP)
|
|
(Non-GAAP)
|
|
($ in
thousands)
|
Consolidated
|
|
Eliminations
and
adjustments
|
Burford-
only
|
Other
funds
|
BOF-C
|
Group-wide
|
|
Capital
provision-direct
|
88,769
|
|
(16,492)
|
72,277
|
5,400
|
15,947
|
93,624
|
|
Capital
provision-indirect
|
9,371
|
|
(7,818)
|
1,563
|
7,817
|
-
|
9,380
|
|
Post-settlement
|
-
|
|
-
|
-
|
10,308
|
-
|
10,308
|
|
Total
deployments
|
98,150
|
|
(24,310)
|
73,840
|
23,525
|
15,947
|
113,312
|
|
Three months ended
September 30, 2023
|
|
(GAAP)
|
|
(Non-GAAP)
|
|
($ in
thousands)
|
Consolidated
|
|
Eliminations
and
adjustments
|
Burford-
only
|
Other
funds
|
BOF-C
|
Group-wide
|
|
Capital
provision-direct
|
69,690
|
|
(13,704)
|
55,986
|
4,379
|
21,819
|
82,184
|
|
Capital
provision-indirect
|
32,257
|
|
(26,881)
|
5,376
|
26,881
|
-
|
32,257
|
|
Post-settlement
|
-
|
|
-
|
-
|
7,466
|
-
|
7,466
|
|
Total
deployments
|
101,947
|
|
(40,585)
|
61,362
|
38,726
|
21,819
|
121,907
|
|
Nine months ended
September 30, 2024
|
|
(GAAP)
|
|
(Non-GAAP)
|
|
($ in
thousands)
|
Consolidated
|
|
Eliminations
and
adjustments
|
Burford-
only
|
Other
funds
|
BOF-C
|
Group-wide
|
|
Capital
provision-direct
|
332,788
|
|
(69,685)
|
263,103
|
12,763
|
73,498
|
349,364
|
|
Capital
provision-indirect
|
68,106
|
|
(56,755)
|
11,351
|
56,755
|
-
|
68,106
|
|
Post-settlement
|
-
|
|
-
|
-
|
39,836
|
-
|
39,836
|
|
Total
deployments
|
400,894
|
|
(126,440)
|
274,454
|
109,354
|
73,498
|
457,306
|
|
Nine months ended
September 30, 2023
|
|
(GAAP)
|
|
(Non-GAAP)
|
|
($ in
thousands)
|
Consolidated
|
|
Eliminations
and
adjustments
|
Burford-
only
|
Other
funds
|
BOF-C
|
Group-wide
|
|
Capital
provision-direct
|
401,215
|
|
(96,783)
|
304,432
|
17,362
|
97,775
|
419,569
|
|
Capital
provision-indirect
|
145,051
|
|
(120,876)
|
24,175
|
120,876
|
-
|
145,051
|
|
Post-settlement
|
-
|
|
-
|
-
|
43,272
|
-
|
43,272
|
|
Total
deployments
|
546,266
|
|
(217,659)
|
328,607
|
181,510
|
97,775
|
607,892
|
Reconciliation of consolidated proceeds from capital
provision assets to Burford-only cash receipts
|
|
|
|
|
($ in
thousands)
|
|
Three months
ended
September 30, 2024
|
Three months
ended
September 30, 2023
|
|
Consolidated
proceeds from capital provision assets
|
|
395,943
|
132,147
|
|
Less: Elimination of
third-party interests
|
|
(91,185)
|
(7,074)
|
|
Burford-only total
proceeds from capital provision assets
|
|
340,758
|
125,073
|
|
Burford-only proceeds
from capital provision-direct assets
|
|
301,345
|
105,915
|
|
Less: Funding of
financial liabilities at fair value through profit or
loss
|
|
(2,583)
|
-
|
|
Burford-only
proceeds from capital provision-direct assets
(adjusted)
|
|
298,765
|
105,915
|
|
Burford-only proceeds
from capital provision-indirect assets
|
|
3,413
|
19,158
|
|
Burford-only total
proceeds from capital provision assets
|
|
302,175
|
125,073
|
|
Consolidated asset
management income
|
|
3,147
|
1,876
|
|
Plus: Eliminated
income from funds
|
|
7,963
|
14,265
|
|
Burford-only asset
management income
|
|
11,110
|
16,141
|
|
Less: Non-cash
adjustments(1)
|
|
(9,389)
|
(10,409)
|
|
Burford-only
proceeds from asset management income
|
|
1,721
|
5,732
|
|
Burford-only proceeds
from marketable security interest and dividends
|
|
4,567
|
2,062
|
|
Burford-only proceeds
from other income
|
|
2,028
|
(73)
|
|
Burford-only
proceeds from other items
|
|
6,595
|
1,989
|
|
Cash
receipts
|
|
310,491
|
132,794
|
|
|
(1) Adjustments for the
change in asset management receivables accrued during the
applicable period but not yet received at the end of such
period.
|
|
|
|
|
|
($ in
thousands)
|
|
Nine months
ended
September 30, 2024
|
Nine months
ended
September 30, 2023
|
|
Consolidated
proceeds from capital provision assets
|
|
768,848
|
440,154
|
|
Less: Elimination of
third-party interests
|
|
(248,062)
|
(94,587)
|
|
Burford-only total
proceeds from capital provision assets
|
|
520,786
|
345,567
|
|
Burford-only proceeds
from capital provision-direct assets
|
|
500,595
|
319,236
|
|
Less: Funding of
financial liabilities at fair value through profit or
loss
|
|
(2,583)
|
-
|
|
Burford-only
proceeds from capital provision-direct assets
(adjusted)
|
|
498,012
|
319,236
|
|
Burford-only proceeds
from capital provision-indirect assets
|
|
20,191
|
26,331
|
|
Burford-only total
proceeds from capital provision assets
|
|
518,203
|
345,567
|
|
Consolidated asset
management income
|
|
6,654
|
5,767
|
|
Plus: Eliminated
income from funds
|
|
22,616
|
35,415
|
|
Burford-only asset
management income
|
|
29,270
|
41,182
|
|
Less: Non-cash
adjustments(1)
|
|
(12,081)
|
(12,137)
|
|
Burford-only
proceeds from asset management income
|
|
17,189
|
29,045
|
|
Burford-only proceeds
from marketable security interest and dividends
|
|
15,136
|
3,625
|
|
Burford-only proceeds
from other income
|
|
5,020
|
1,495
|
|
Burford-only
proceeds from other items
|
|
20,156
|
5,120
|
|
Cash
receipts
|
|
555,548
|
379,732
|
|
|
(1) Adjustments for the
change in asset management receivables accrued during the
applicable period but not yet received at the end of such
period.
|
Reconciliation of consolidated portfolio to Group-wide
portfolio
|
|
September
30, 2024
|
|
|
|
(GAAP)
|
|
(non-GAAP)
|
|
|
|
|
|
Elimination of
|
|
|
|
|
|
|
|
|
|
|
($ in
thousands)
|
|
Consolidated
|
|
third-party
interests
|
|
Burford-only
|
|
Other
funds
|
|
BOF-C
|
|
Group-
wide
|
|
|
Capital provision
assets - direct:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deployed
cost
|
|
2,172,043
|
|
(526,376)
|
|
1,645,667
|
|
362,230
|
|
459,211
|
|
2,467,108
|
|
|
Plus: Fair
value adjustments
|
|
2,946,300
|
|
(978,623)
|
|
1,967,677
|
|
168,275
|
|
227,300
|
|
2,363,252
|
|
|
Fair value
|
|
5,118,343
|
|
(1,504,999)
|
|
3,613,344
|
|
530,505
|
|
686,511
|
|
4,830,360
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital provision
assets - indirect:
|
|
|
|
|
|
|
|
|
|
|
|
|
Deployed
cost
|
|
205,831
|
|
(174,918)
|
|
30,913
|
|
174,918
|
|
-
|
|
205,831
|
|
|
Plus: Fair
value adjustments
|
|
32,126
|
|
(23,156)
|
|
8,970
|
|
23,156
|
|
-
|
|
32,126
|
|
|
Fair value
|
|
237,957
|
|
(198,074)
|
|
39,883
|
|
198,074
|
|
-
|
|
237,957
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital
provision assets
|
|
5,356,300
|
|
(1,703,073)
|
|
3,653,227
|
|
728,579
|
|
686,511
|
|
5,068,317
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post-settlement
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deployed
cost
|
|
-
|
|
-
|
|
-
|
|
217,352
|
|
-
|
|
217,352
|
|
|
Plus: Fair
value adjustments
|
|
-
|
|
-
|
|
-
|
|
44,301
|
|
-
|
|
44,301
|
|
|
Fair value
|
|
-
|
|
-
|
|
-
|
|
261,653
|
|
-
|
|
261,653
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Undrawn
commitments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
provision-direct
|
|
1,987,200
|
|
(425,075)
|
|
1,562,125
|
|
107,578
|
|
416,320
|
|
2,086,023
|
|
|
Capital
provision-indirect
|
|
3,479
|
|
(2,899)
|
|
580
|
|
2,899
|
|
-
|
|
3,479
|
|
|
Post-settlement
|
|
-
|
|
-
|
|
-
|
|
58,820
|
|
-
|
|
58,820
|
|
|
Total undrawn
commitments
|
|
1,990,679
|
|
(427,974)
|
|
1,562,705
|
|
169,297
|
|
416,320
|
|
2,148,322
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
portfolio
|
|
7,346,979
|
|
(2,131,047)
|
|
5,215,932
|
|
1,159,529
|
|
1,102,831
|
|
7,478,292
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2023
|
|
|
(GAAP)
|
|
(non-GAAP)
|
|
|
|
|
Elimination of
|
|
|
|
|
|
|
|
|
|
|
|
|
third-party
|
|
|
|
|
|
|
|
|
|
($ in
thousands)
|
|
Consolidated
|
|
interests
|
|
Burford-only
|
|
Other
funds
|
|
BOF-C
|
|
Group-wide
|
|
Capital provision
assets - direct:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deployed
cost
|
|
2,116,304
|
|
(542,773)
|
|
1,573,531
|
|
416,318
|
|
428,110
|
|
2,417,959
|
|
Plus: Fair
value adjustments
|
|
2,743,575
|
|
(929,505)
|
|
1,814,070
|
|
180,169
|
|
220,363
|
|
2,214,602
|
|
Fair value
|
|
4,859,879
|
|
(1,472,278)
|
|
3,387,601
|
|
596,487
|
|
648,473
|
|
4,632,561
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital provision
assets - indirect:
|
|
|
|
|
|
|
|
|
|
|
|
|
Deployed
cost
|
|
164,259
|
|
(125,508)
|
|
38,751
|
|
125,508
|
|
-
|
|
164,259
|
|
Plus: Fair
value adjustments
|
|
21,250
|
|
(15,490)
|
|
5,760
|
|
15,490
|
|
-
|
|
21,250
|
|
Fair value
|
|
185,509
|
|
(140,998)
|
|
44,511
|
|
140,998
|
|
-
|
|
185,509
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital
provision assets
|
|
5,045,388
|
|
(1,613,276)
|
|
3,432,112
|
|
737,485
|
|
648,473
|
|
4,818,070
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post-settlement
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deployed
cost
|
|
-
|
|
-
|
|
-
|
|
253,062
|
|
-
|
|
253,062
|
|
Plus: Fair
value adjustments
|
|
-
|
|
-
|
|
-
|
|
45,792
|
|
-
|
|
45,792
|
|
Fair value
|
|
-
|
|
-
|
|
-
|
|
298,854
|
|
-
|
|
298,854
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Undrawn
commitments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
provision-direct
|
|
1,801,627
|
|
(405,566)
|
|
1,396,061
|
|
126,560
|
|
396,646
|
|
1,919,267
|
|
Capital
provision-indirect
|
|
71,662
|
|
(59,718)
|
|
11,944
|
|
59,718
|
|
-
|
|
71,662
|
|
Post-settlement
|
|
-
|
|
-
|
|
-
|
|
62,455
|
|
-
|
|
62,455
|
|
Total undrawn
commitments
|
|
1,873,289
|
|
(465,284)
|
|
1,408,005
|
|
248,733
|
|
396,646
|
|
2,053,384
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
portfolio
|
|
6,918,677
|
|
(2,078,560)
|
|
4,840,117
|
|
1,285,072
|
|
1,045,119
|
|
7,170,308
|
Reconciliation of consolidated to Burford-only cash and
cash equivalents and marketable securities
|
|
|
|
|
|
|
|
|
September 30, 2024
|
|
December
31, 2023
|
|
(GAAP)
|
(Non-GAAP)
|
|
(GAAP)
|
(Non-GAAP)
|
|
($ in
thousands)
|
Consolidated
|
Elimination of
third-party interests
|
Burford-only
|
|
Consolidated
|
Elimination
of third-party interests
|
Burford-only
|
|
Cash and cash
equivalents
|
574,014
|
(20,856)
|
553,158
|
|
220,549
|
(24,634)
|
195,915
|
|
Marketable
securities
|
75,801
|
-
|
75,801
|
|
107,561
|
-
|
107,561
|
|
Total cash and cash
equivalents and marketable securities
|
649,815
|
(20,856)
|
628,959
|
|
328,110
|
(24,634)
|
303,476
|
Reconciliation of consolidated to Burford-only due from
settlement of capital provision assets
|
|
|
|
|
|
|
|
|
September 30, 2024
|
|
December
31, 2023
|
|
|
(GAAP)
|
(Non-GAAP)
|
|
(GAAP)
|
(Non-GAAP)
|
|
($ in
thousands)
|
Consolidated
|
Elimination of
third-party
interests
|
Burford-
only
|
|
Consolidated
|
Elimination of
third-party
interests
|
Burford-
only
|
|
Due from settlement of
capital provision assets
|
64,489
|
-
|
64,489
|
|
265,540
|
(80,273)
|
185,267
|
|
|
|
|
|
|
|
|
|
Reconciliation of consolidated to Burford-only net
realized gains/(losses) on capital provision-direct assets
|
|
|
|
|
|
|
|
|
|
|
|
|
(GAAP)
|
|
|
|
(Non-GAAP)
|
|
($ in
thousands)
|
Consolidated
|
|
Eliminations
and
adjustments
|
Burford-
only total
|
Burford-only
Capital
provision-direct
|
Burford-only
Capital
provision-indirect
|
|
Net realized
gains/(losses) for the three months ended September 30,
2024
|
86,940
|
|
(30,450)
|
56,490
|
56,257
|
233
|
|
Net realized
gains/(losses) for the three months ended September 30,
2023
|
37,566
|
|
(7,440)
|
30,126
|
29,145
|
981
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(GAAP)
|
|
|
|
(Non-GAAP)
|
|
($ in
thousands)
|
Consolidated
|
|
Eliminations
and adjustments
|
Burford-
only total
|
Burford-only
Capital
provision-direct
|
Burford-only
Capital
provision-indirect
|
|
Net realized
gains/(losses) for the nine months ended September 30,
2024
|
262,273
|
|
(76,736)
|
185,537
|
184,164
|
1,373
|
|
Net realized
gains/(losses) for the nine months ended September 30,
2023
|
171,331
|
|
(46,811)
|
124,520
|
123,539
|
981
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of consolidated to Burford-only capital
provision income
|
|
|
|
|
|
|
|
|
Three months ended
September 30, 2024
|
|
Three months ended
September 30, 2023
|
|
|
(GAAP)
|
(Non-GAAP)
|
|
(GAAP)
|
(Non-GAAP)
|
|
($ in
thousands)
|
Consolidated
|
Elimination of
third-party interests
|
Burford-only
|
|
Consolidated
|
Elimination of
third-party interests
|
Burford-only
|
|
Net realized
gains/(losses)
|
86,940
|
(30,450)
|
56,490
|
|
37,566
|
(7,440)
|
30,126
|
|
Fair value adjustment
during the period, net of previously recognized unrealized
gains/(losses) transferred to realized gains/(losses)
(excluding-YPF)
|
75,684
|
(554)
|
75,130
|
|
46,125
|
(32,339)
|
13,786
|
|
Income on capital
provision assets, excluding YPF
|
162,624
|
(31,004)
|
131,620
|
|
83,691
|
(39,779)
|
43,912
|
|
Fair value adjustment
during the period, net of previously recognized unrealized
gains/(losses) transferred to realized gains/(losses)
(YPF-only)
|
104,135
|
(34,546)
|
69,589
|
|
417,920
|
(140,690)
|
277,230
|
|
Other
|
4,229
|
(477)
|
3,752
|
|
2,902
|
951
|
3,853
|
|
Total capital
provision income
|
270,988
|
(66,027)
|
204,961
|
|
504,513
|
(179,518)
|
324,995
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 30, 2024
|
|
Nine months ended
September 30, 2023
|
|
|
(GAAP)
|
(Non-GAAP)
|
|
(GAAP)
|
(Non-GAAP)
|
|
($ in
thousands)
|
Consolidated
|
Elimination of
third-party interests
|
Burford-only
|
|
Consolidated
|
Elimination of
third-party interests
|
Burford-only
|
|
Net realized
gains/(losses)
|
262,273
|
(76,736)
|
185,537
|
|
171,331
|
(46,811)
|
124,520
|
|
Fair value adjustment
during the period, net of previously recognized unrealized
gains/(losses) transferred to realized gains/(losses)
(excluding-YPF)
|
63,406
|
(3,322)
|
60,084
|
|
142,799
|
(57,472)
|
85,327
|
|
Income on capital
provision assets, excluding YPF
|
325,679
|
(80,058)
|
245,621
|
|
314,130
|
(104,283)
|
209,847
|
|
Fair value adjustment
during the period, net of previously recognized unrealized
gains/(losses) transferred to realized gains/(losses)
(YPF-only)
|
141,782
|
(47,372)
|
94,410
|
|
695,238
|
(235,731)
|
459,507
|
|
Other
|
2,033
|
160
|
2,193
|
|
6,745
|
303
|
7,048
|
|
Total capital
provision income
|
469,494
|
(127,270)
|
342,224
|
|
1,016,113
|
(339,711)
|
676,402
|
|
|
|
|
|
|
|
|
|
Reconciliation of consolidated undrawn commitments
to Burford-only undrawn commitments
|
|
September 30, 2024
|
|
|
|
|
Elimination
of
third-party
interests
|
|
|
|
($ in
thousands)
|
|
Consolidated
|
|
|
Burford-only
|
|
Definitive
|
|
931,730
|
|
(204,768)
|
|
726,962
|
|
Discretionary
|
|
1,011,019
|
|
(220,307)
|
|
790,712
|
|
Total legal finance
undrawn commitments
|
|
1,942,749
|
|
(425,075)
|
|
1,517,674
|
|
Legal risk
(definitive)
|
|
44,451
|
|
-
|
|
44,451
|
|
Total capital
provision-direct undrawn commitments
|
|
1,987,200
|
|
(425,075)
|
|
1,562,125
|
|
Capital
provision-indirect undrawn commitments
|
|
3,479
|
|
(2,899)
|
|
580
|
|
Total capital
provision undrawn commitments
|
|
1,990,679
|
|
(427,974)
|
|
1,562,705
|
|
|
|
|
|
December
31,2023
|
|
|
|
|
Elimination
of
third-party
interests
|
|
|
|
($ in
thousands)
|
|
Consolidated
|
|
|
Burford-only
|
|
Definitive
|
|
768,311
|
|
(188,313)
|
|
579,998
|
|
Discretionary
|
|
977,733
|
|
(211,196)
|
|
766,537
|
|
Total legal finance
undrawn commitments
|
|
1,746,044
|
|
(399,509)
|
|
1,346,535
|
|
Legal risk
(definitive)
|
|
55,583
|
|
(6,057)
|
|
49,526
|
|
Total capital
provision-direct undrawn commitments
|
|
1,801,627
|
|
(405,566)
|
|
1,396,061
|
|
Capital
provision-indirect undrawn commitments
|
|
71,662
|
|
(59,718)
|
|
11,944
|
|
Total capital
provision undrawn commitments
|
|
1,873,289
|
|
(465,284)
|
|
1,408,005
|
Reconciliation of tangible book value attributable
to Burford Capital Limited per ordinary share
|
|
|
|
|
|
($ in thousands,
except share data)
|
|
September 30,
2024
|
|
December 31,
2023
|
|
Total Burford
Capital Limited equity
|
|
2,432,109
|
|
2,290,858
|
|
Less:
Goodwill
|
|
(134,015)
|
|
(133,965)
|
|
Tangible book value
attributable to Burford Capital Limited
|
|
2,298,094
|
|
2,156,893
|
|
Basic ordinary shares
outstanding
|
|
219,421,376
|
|
218,962,441
|
|
Tangible book value
attributable to Burford Capital Limited per ordinary
share
|
|
$10.47
|
|
$9.85
|
Definitions and use of non-GAAP financial measures and
alternative performance measures
Burford reports its consolidated financial results in accordance
with US GAAP. US GAAP requires us to present financial statements
that consolidate some of the limited partner interests in private
funds we manage as well as assets held on our balance sheet where
we have a partner or minority investor. We therefore refer to
various presentations of our consolidated financial results as
follows:
- Consolidated refers to assets, liabilities and
activities that include those third-party interests, partially
owned subsidiaries and special purpose vehicles that we are
required to consolidate under US GAAP. At the date of this
announcement, the major entities where there is also a third-party
partner in, or owner of, those entities include Burford Opportunity
Fund C LP, Burford Advantage Master Fund LP, Colorado Investments
Limited ("Colorado") and several
other entities in which Burford holds investments where there is
also a third-party partner in, or owner of, those entities.
- Burford-only refers to assets, liabilities and
activities that pertain only to Burford on a proprietary basis,
excluding any third-party interests and the portions of jointly
owned entities owned by others.
- Group-wide refers to the totality of assets managed by
Burford, including those portions of the private funds owned by
third parties and including private funds that are not consolidated
within Burford's consolidated financial statements. Group-wide is
therefore the sum of Burford-only and non-controlling interests in
consolidated and non-consolidated private funds. Group-wide does
not include third-party interests in capital provision assets, the
economics of which have been sold to those third parties, which do
not meet the criteria to be recognized as a sale under US GAAP.
This includes the third-party interests in Colorado and other capital provision asset
subparticipations.
We subdivide our capital provision assets into two
categories:
- Direct, which includes all of our capital provision
assets that we have originated directly (i.e., not through
participation in a private fund) from our balance sheet. We also
include direct (i.e., not through participation in a private
fund) complex strategies assets in this category.
- Indirect, which includes our balance sheet's
participations in one of our private funds (i.e., Burford
Advantage Master Fund LP).
We also use certain unaudited alternative performance measures,
including:
- Internal rate of return ("IRR") is a discount rate that
makes the net present value of a series of cash flows equal to zero
and is expressed as a percentage figure. We compute IRR on
concluded (including partially concluded) legal finance assets by
treating that entire portfolio (or, when noted, a subset thereof)
as one undifferentiated pool of capital and measuring actual and,
if necessary, estimated inflows and outflows from that pool,
allocating costs appropriately. IRRs do not include unrealized
gains or losses.
- Return on invested capital ("ROIC") from a concluded
asset is the absolute amount of realizations from such asset in
excess of the amount of expenditure incurred in financing such
asset divided by the amount of expenditure incurred, expressed as a
percentage figure. ROIC is a measure of our ability to generate
absolute returns on our assets. Some industry participants express
returns on a multiple of invested capital ("MOIC") instead
of a ROIC basis. MOIC includes the return of capital and,
therefore, is 1x higher than ROIC. In other words, 70% ROIC is the
same as 1.70x MOIC.
Other unaudited alternative performance measures and terms we
use include:
- Commitment is the amount of financing we agree to
provide for a legal finance asset. Commitments can be definitive
(requiring us to provide financing on a schedule or, more often,
when certain expenses are incurred) or discretionary (allowing us
to provide financing after reviewing and approving a future
matter). Unless otherwise indicated, commitments include deployed
cost and undrawn commitments.
- Deployment refers to the financing provided for an
asset, which adds to our deployed cost in such asset.
- Deployed cost is the amount of financing we have
provided for an asset at the applicable point in time.
- Fair value adjustment is the amount of unrealized gain
or loss recognized in our consolidated statements of operations in
the relevant period and added to or subtracted from, as applicable,
the asset or liability value in our consolidated statements of
financial position.
- Portfolio includes deployed cost, net unrealized
gains or losses and undrawn commitments.
- Realization: A legal finance asset is realized when
the asset is concluded (i.e., when litigation risk has been
resolved). A realization will result in us receiving cash or,
occasionally, non-cash assets, or recognizing a due from settlement
receivable, reflecting what we are owed on the asset.
- Realized gain / loss reflects the total amount of gain
or loss, relative to cost, generated by a legal finance asset when
it is realized, calculated as realized proceeds less deployed cost,
without regard for any previously recognized fair value
adjustment.
- Unrealized gain / loss represents the fair value of our
legal finance assets over or under their deployed cost, as
determined in accordance with the requirements of the applicable US
GAAP standards, for the relevant financial reporting period
(consolidated statements of operations) or cumulatively
(consolidated statements of financial position).
- YPF-related assets refers to our Petersen and Eton Park legal finance assets,
which are two claims relating to the Republic of Argentina's nationalization of YPF S.A., the
Argentine energy company.
We also use certain non-GAAP financial measures, including:
- Book value per ordinary share is calculated by dividing
total Burford Capital Limited equity by the number of ordinary
shares issued and outstanding.
- Cash receipts represent cash generated during the
reporting period from our capital provision assets, asset
management income and certain other items, before any deployments
into financing existing or new assets. Cash receipts are a non-GAAP
financial measure and should not be considered in isolation from,
as a substitute for, or superior to, financial measures calculated
in accordance with US GAAP. The most directly comparable measure
calculated in accordance with US GAAP is proceeds from capital
provision assets as set forth in our consolidated statements of
cash flows. We believe that cash receipts are an important measure
of our operating and financial performance and are useful to
management and investors when assessing the performance of our
Burford-only capital provision assets.
- Tangible book value attributable to Burford Capital
Limited is calculated by subtracting intangible assets
(such as goodwill) from total Burford Capital Limited equity.
Tangible book value attributable to Burford Capital Limited
per ordinary share is calculated by dividing tangible book
value attributable to Burford Capital Limited by the total number
of outstanding ordinary shares. Each of tangible book value
attributable to Burford Capital Limited and tangible book value
attributable to Burford Capital Limited per ordinary share is a
non-GAAP financial measure and should not be considered in
isolation from, as a substitute for, or superior to, financial
measures calculated in accordance with US GAAP. The most directly
comparable measure calculated in accordance with US GAAP is total
Burford Capital Limited equity as set forth in our consolidated
statements of financial position. We believe that tangible book
value attributable to Burford Capital Limited per ordinary share is
an important measure of our financial condition and is useful to
management and investors when assessing capital adequacy and our
ability to generate earnings on tangible equity invested by our
shareholders.
Non-GAAP financial measures should not be considered in
isolation from, as substitutes for, or superior to, financial
measures calculated in accordance with US GAAP.
This announcement does not constitute an offer to sell or the
solicitation of an offer to buy any ordinary shares or other
securities of Burford.
This announcement does not constitute an offer of any Burford
private fund. Burford Capital Investment Management LLC, which
acts as the fund manager of all Burford private funds, is
registered as an investment adviser with the US Securities and
Exchange Commission. The information provided in this announcement
is for informational purposes only. Past performance is not
indicative of future results. The information contained in this
announcement is not, and should not be construed as, an offer to
sell or the solicitation of an offer to buy any securities
(including, without limitation, interests or shares in any of
Burford private funds). Any such offer or solicitation may be made
only by means of a final confidential private placement memorandum
and other offering documents.
Forward-looking statements
This announcement contains "forward-looking statements" within
the meaning of Section 21E of the US Securities Exchange Act of
1934, as amended, regarding assumptions, expectations, projections,
intentions and beliefs about future events. These statements are
intended as "forward-looking statements". In some cases,
predictive, future-tense or forward-looking words such as "aim",
"anticipate", "believe", "continue", "could", "estimate", "expect",
"forecast", "guidance", "intend", "may", "plan", "potential",
"predict", "projected", "should" or "will" or the negative of such
terms or other comparable terminology are intended to identify
forward-looking statements, but are not the exclusive means of
identifying such statements. In addition, Burford and its
representatives may from time to time make other oral or written
statements that are forward-looking, including in its periodic
reports that Burford files with, or furnishes to, the
US Securities and Exchange Commission, other information made
available to Burford's security holders and other written
materials. By their nature, forward-looking statements involve
known and unknown risks, uncertainties and other factors because
they relate to events and depend on circumstances that may or may
not occur in the future. Burford cautions that forward-looking
statements are not guarantees of future performance and are based
on numerous assumptions, expectations, projections, intentions and
beliefs and that Burford's actual results of operations, including
its financial position and liquidity, and the development of the
industry in which it operates, may differ materially from (and be
more negative than) those made in, or suggested by, the
forward-looking statements contained in this announcement.
Significant factors that may cause actual results to differ from
those Burford expects include, among others, those discussed under
"Risk Factors" in Burford's annual report on Form 20-F for the year
ended December 31, 2023 filed with
the US Securities and Exchange Commission on March 28, 2024 and other reports or documents
that Burford files with, or furnishes to, the US Securities
and Exchange Commission from time to time. In addition, even if
Burford's results of operations, including its financial position
and liquidity, and the development of the industry in which it
operates are consistent with the forward-looking statements
contained in this announcement, those results of operations or
developments may not be indicative of results of operations or
developments in subsequent periods.
Except as required by applicable law, Burford undertakes no
obligation to update or revise the forward-looking statements
contained in this announcement, whether as a result of new
information, future events or otherwise.
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SOURCE Burford Capital