RNS Number : 3692L
Burford Capital Limited
07 November 2024
 

 

 

November 7, 2024   

 

 

Burford Capital Reports Third Quarter 2024 Results

 

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 and at http://www.rns-pdf.londonstockexchange.com/rns/3692L_1-2024-11-7.pdf.

 


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 in YTD24 of $216 million (YTD23: $195 million)

§

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


 

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, Sydney and Hong Kong.

 

www.burfordcapital.com.

 

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.

 

 

condensed consolidated and Burford-only statements of operations for the three and six months ended June 30, 2024 and 2023, the condensed consolidated and Burford-only statements of financial position at June 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 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)

 

($ 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

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

60,084


142,799

(57,472)

85,327

Income on capital provision assets, excluding YPF

325,679

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

 

 

 

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:

 

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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