NEW
YORK, March 14, 2024 /PRNewswire/
-- Burford Capital Limited ("Burford"), the leading global
finance and asset management firm focused on law, today announces
its fourth quarter and full year 2023 results.
In addition, Burford has made available an accompanying fourth
quarter and full year 2023 results presentation, a shareholder
letter and capital provision-direct and capital provision-indirect
asset data tables on its website at
http://investors.burfordcapital.com.
Christopher Bogart, Chief
Executive Officer of Burford Capital, commented:
"Burford had an extraordinary year. Our earnings per share rose
19x to $2.74, driven by a tripling of
consolidated total revenues to $1.1
billion in 2023 due to significant growth in capital
provision income, with and without our YPF-related assets. We
achieved a Burford-only net income margin of 63%. With the courts
fully back in business, we had an active year and we anticipate
further substantial levels of activity in 2024 and 2025. Increased
portfolio velocity was reflected in record core legal finance
realizations, cash receipts and realized gains, as well as sizeable
unrealized gains arising from the portfolio moving forward. Our
ROTE soared to 32% in 2023 from 2% in 2022, and we increased
tangible book value by 34% to $9.85."
Consolidated financial results (unaudited)
Summary statements
of operations
|
|
Years
ended
December
31,
|
|
Three months
ended
December
31,
|
Consolidated (US
GAAP)
($ in thousands, except
per share data)
|
2023
|
2022
|
%
change
|
|
2023
|
2022
|
%
change
|
Capital provision
income
|
1,341,923
|
319,108
|
321 %
|
|
325,810
|
165,942
|
96 %
|
Asset management
income
|
7,642
|
9,116
|
-16 %
|
|
1,875
|
2,025
|
-7 %
|
Total
revenues
|
1,086,902
|
319,227
|
240 %
|
|
292,573
|
161,336
|
81 %
|
Operating
expenses
|
271,236
|
124,272
|
118 %
|
|
120,237
|
42,126
|
185 %
|
Net income/(loss)
attributable to Burford Capital Limited shareholders
|
610,522
|
30,506
|
1,901 %
|
|
100,095
|
81,914
|
22 %
|
|
Per diluted ordinary
share
|
2.74
|
0.14
|
1,857 %
|
|
0.45
|
0.37
|
22 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary statements
of financial position
|
Consolidated (US
GAAP)
($ in thousands, except
per share data)
|
December 31,
2023
|
December 31,
2022
|
%
change
|
Capital provision
assets
|
5,045,388
|
3,735,556
|
35 %
|
Total Burford
Capital Limited equity
|
2,290,858
|
1,742,584
|
31 %
|
Book value per ordinary share
|
10.46
|
7.97
|
31 %
|
Non-controlling
interests
|
916,922
|
644,486
|
42 %
|
Total shareholders'
equity
|
3,207,780
|
2,387,070
|
34 %
|
Total liabilities
and shareholders' equity
|
5,837,394
|
4,288,359
|
36 %
|
|
|
|
|
|
|
|
|
|
|
In this announcement, references to "FY23"and "FY22" are to
Burford's financial results for the years ended December 31, 2023 and 2022, respectively. All
figures in this announcement are presented on a preliminary and
unaudited consolidated basis in accordance with the generally
accepted accounting principles in the
United States ("US GAAP"), unless otherwise stated.
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
|
|
Years ended December
31,
|
|
Three months ended
December 31,
|
Burford-only
(non-GAAP)
($ in
thousands)
|
2023
|
2022
|
%
change
|
|
2023
|
2022
|
%
change
|
Realized
gains
|
186,443
|
133,357
|
40 %
|
|
62,904
|
70,487
|
-11 %
|
Realizations
|
496,216
|
350,209
|
42 %
|
|
222,115
|
157,729
|
41 %
|
Cash
receipts2
|
489,209
|
327,986
|
49 %
|
|
109,477
|
98,514
|
11 %
|
Deployments
|
382,195
|
457,106
|
-16 %
|
|
77,763
|
181,687
|
-57 %
|
New
commitments
|
691,086
|
726,273
|
-5 %
|
|
242,404
|
325,705
|
-26 %
|
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)
|
December 31,
2023
|
December 31,
2022
|
%
change
|
Total
portfolio
|
7,170,308
|
6,146,871
|
17 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Realized gains in FY23 up 40% to $186
million from the prior year (FY22: $133 million), with no contribution from the
YPF-related assets
- Realizations in FY23 up 42% to $496
million (FY22: $350 million)
- Continued strength in realizations in FY23 reflects increased
portfolio velocity, as the case backlog in the courts continues to
clear
- Cash receipts in FY23 up 49% to $489
million (FY22: $328 million)
- Cash receipts in FY23 meaningfully exceeded total operating
expenses and finance costs
- Deployments in FY23 down 16% to $382
million (FY22: $457 million)
- Current vintage year Burford-only capital provision-direct
deployments were ~40% of 2023 total compared to ~60% in 2022 – this
is simply a business mix variation as 2022 had more monetizations
and the rapid settlement of a large 2023 matter, producing 37% IRR,
meant there was a $100 million of
available commitment not deployed
- New commitments in FY23 up 4% to $1.2
billion on a group-wide basis (FY22: $1.2 billion)
- However, capital provision-direct new commitments on
Burford-only basis down 5% to $691
million as BOF-C took a larger share of new commitments
(FY22: $726 million)
- Group-wide total portfolio increased 17% to $7.2 billion at December
31, 2023 (December 31, 2022:
$6.1 billion), due to significant
fair value gains and growth in deployments and undrawn
commitments
Selected financial
metrics
|
|
Years
ended
December
31,
|
|
Three months
ended
December
31,
|
Burford-only
(non-GAAP)
($ in thousands, except
per share data)
|
2023
|
2022
|
%
change
|
|
2023
|
2022
|
%
change
|
Total
revenues
|
976,542
|
250,605
|
290 %
|
|
250,615
|
143,173
|
75 %
|
Operating
expenses
|
268,538
|
122,696
|
119 %
|
|
118,161
|
41,751
|
183 %
|
Operating
income/(loss)
|
708,004
|
127,909
|
454 %
|
|
132,454
|
101,422
|
31 %
|
Net
income/(loss)
|
610,522
|
30,506
|
1901 %
|
|
100,095
|
81,914
|
22 %
|
|
|
|
|
|
|
|
|
Burford-only
(non-GAAP)
($ in thousands, except
per share data)
|
December 31,
2023
|
December 31,
2022
|
$
change
|
%
change
|
Tangible book value
attributable to Burford Capital Limited
|
2,156,893
|
1,608,672
|
548,221
|
34 %
|
|
Tangible book value
attributable to Burford Capital Limited per ordinary
share
|
9.85
|
7.36
|
2.49
|
34 %
|
|
|
|
|
|
|
- Total revenues in FY23 of $977
million (FY22: $251 million)
were a driver of significant earnings growth
- Realized gains on total capital provision assets of
$187 million in FY23 driven by
capital provision-direct assets, representing our highest returning
core legal finance strategy
- Unrealized gains, excluding YPF-related assets, on capital
provision assets increased 120% in FY23 to $158 million (FY22: $72
million), due to portfolio progress
- YPF-related assets generated $543
million of unrealized gains in FY23, due mainly to favorable
summary judgment in the first quarter of 2023 and favorable final
judgment in the third quarter of 2023
- Operating income in FY23 of $708
million (FY22: $128 million),
attributable principally to growth of 290% in total revenues
- Operating expenses in FY23 of $269
million (FY22: $123 million),
reflecting strong portfolio performance
- Total operating expenses in 2023 include almost $130 million of non-cash accruals and one-time or
case expenses
- Strong revenue growth caused total operating expenses
(including all non-cash accruals) as a percentage of total revenues
to decline to 27% in 2023 from 49% in 2022
- Increase in portfolio value, including unrealized gains on the
YPF-related assets, drove increase in accrued compensation expense
associated with carried interest
- Long-term incentive compensation includes accrued expenses and
related employee benefits and are only paid out upon receipt of
cash proceeds from net realized gains of capital provision
assets
- Net income in FY23 of $611
million (FY22: $31 million)
amounted to 63% of total revenues
- Net income per diluted share in FY23 of $2.74 (FY22: $0.14
per diluted share)
- Tangible book value attributable to Burford Capital Limited of
$2.2 billion at December 31, 2023 (December 31, 2022: $1.6
billion)
- Tangible book value attributable to Burford Capital Limited per
ordinary share increased 34% to $9.85
at December 31, 2023 (December 31, 2022: $7.36), primarily reflecting strong earnings
- Burford-only ROTE for FY23 of 32% (FY22: 2%)
Selected portfolio
metrics
|
Burford-only
($ in
thousands)
|
December 31,
2023
|
December 31,
2022
|
$
change
|
%
change
|
Deployed
cost
|
1,573,531
|
1,486,150
|
87,381
|
6 %
|
Plus: Fair value
adjustments
|
1,814,070
|
1,117,855
|
696,215
|
62 %
|
Fair value
|
3,387,601
|
2,604,005
|
783,596
|
30 %
|
Undrawn
commitments
|
1,396,061
|
1,299,048
|
97,013
|
7 %
|
Total capital
provision-direct portfolio
|
4,783,662
|
3,903,053
|
880,609
|
23 %
|
Total capital provision
portfolio1
|
4,840,117
|
3,942,7002
|
897,417
|
23 %
|
1 Represents capital
provision-direct and capital provision-indirect.
|
2 The fair value of $31.4
million for the Burford-only capital provision-indirect assets did
not include an additional $1.0 million for the Burford-only portion
of the receivable from due from settlement of capital provision
assets on concluded assets in the Strategic Value Fund for a total
fair value of $32.4 million for Burford-only capital
provision-indirect assets.
|
|
- Fair value of Burford-only capital provision-direct assets
increased by $784 million to
$3.4 billion at December 31, 2023 (December 31, 2022: $2.6
billion)
- Of the $784 million increase in
capital provision-direct asset fair value in FY23, $549 million attributable to the YPF-related
assets
- Cumulative ROIC since inception from Burford-only capital
provision-direct assets of 82% (December 31,
2022: 88%) and IRR of 27% (December
31, 2022: 29%)
Liquidity and
capital
|
|
|
|
|
|
Burford-only
(non-GAAP)
($ in
thousands)
|
December 31,
2023
|
December 31,
2022
|
$
change
|
%
change
|
Liquidity
|
|
|
|
|
|
Cash and cash
equivalents
|
195,915
|
73,679
|
122,236
|
166 %
|
|
Marketable
securities
|
107,561
|
136,358
|
(28,797)
|
-21 %
|
|
Total
liquidity
|
303,476
|
210,037
|
93,439
|
44 %
|
Due from settlement
of capital provision assets
|
185,267
|
114,650
|
70,617
|
62 %
|
|
|
|
|
|
- Burford-only cash and cash equivalents and marketable
securities of $303 million at
December 31, 2023 (December 31, 2022: $210
million)
- Robust liquidity position at December
31, 2023 primarily reflects continued solid Burford-only
cash receipts and issuance in June
2023 of $400 million of senior
notes due 2031
- Liquidity position enhanced in January
2024 by $275 million tack-on
offering of senior notes originally issued in June 2023
- Burford-only due from settlement of capital provision assets of
$185 million at December 31, 2023 (December 31, 2022: $115
million)
- Total debt outstanding of $1.6
billion at December 31, 2023
(December 31, 2022: $1.3 billion)
- Leverage decreased in FY23, primarily driven by asset and
equity growth and remains well below covenant ceiling levels
- In June 2023, Moody's revised its
outlook on its Ba2 rating to positive from stable
- In October 2023, S&P revised
its outlook on its BB- rating to positive from stable
- Declared dividend of 6.25¢ per ordinary share payable, subject
to shareholder approval at the annual general meeting to be held in
May 2024, on June 14, 2024 to shareholders of record on
May 24, 2024, with an ex-dividend
date of May 23, 2024
SEC Reporting
We anticipate filing our annual report on Form 20-F with the US
Securities and Exchange Commission within the next 30 days. We
expect that to be our last filing on Form 20-F, used by foreign
private issuers. Even if we do not lose foreign private issuer
status by having more than 50% US investors on June 30, 2024, we nevertheless intend to move to
reporting as a full US issuer and using Form 10-K for the 2024
fiscal year.
In our forthcoming Form 20-F, we will be reporting a material
weakness in our internal control over financial reporting and that
our disclosure controls and procedures were not effective in the
aftermath of the adoption of our new valuation policy. That
material weakness and corresponding controls' determinations relate
to the lack of documented available evidence demonstrating the
precision of management's application of the process to determine
certain assumptions used in the measurement of the fair value of
capital provision assets. To be clear, this is an issue of internal
documentation of a management process; no material accounting
errors were identified as a result.
Investor and analyst conference call
Burford will hold a conference call for investors and analysts
at 8.00am EDT / 12.00pm GMT on
Thursday, March 14, 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 9722470.
To minimize the risk of delayed access, participants are urged to
dial into the conference call by 7.40am
EDT / 11.40am GMT.
A live webcast of the call will also be available at
https://events.q4inc.com/attendee/461322893, and pre-registration
at that link is encouraged.
An accompanying FY23 and 4Q23 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/461322893.
For further information, please contact:
Burford Capital
Limited
|
|
For investor and
analyst inquiries:
|
|
Robert Bailhache, Head
of Investor Relations, EMEA and Asia - email
|
+44 (0)20 3530
2023
|
Jim Ballan, Head of
Investor Relations, Americas - email
|
+1 (646) 793
9176
|
For press
inquiries:
|
|
David Helfenbein, Vice
President, Public Relations - email
|
+1 (212) 235
6824
|
|
|
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, Sydney and Hong
Kong.
For more information, please visit www.burfordcapital.com.
Summary financial statements and reconciliations
The tables below set forth summaries of the consolidated and
Burford-only statements of operations for the years ended
December 31, 2023 and 2022 and the
three months ended December 31, 2023
and 2022, the consolidated and Burford-only statements of financial
position at December 31, 2023 and
2022 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 consolidated statements of operations
|
|
Years
ended
December
31,
|
|
Three months
ended
December
31,
|
($ in
thousands)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenues
|
|
|
|
|
|
|
|
|
Capital provision
income/(loss)
|
|
1,341,923
|
|
319,108
|
|
325,810
|
|
165,942
|
(Less)/Plus:
Third-party interests in capital
provision
assets
|
|
(279,263)
|
|
(494)
|
|
(43,319)
|
|
(12,622)
|
Asset management
income
|
|
7,642
|
|
9,116
|
|
1,875
|
|
2,025
|
Services and other
income/(loss)
|
|
16,600
|
|
(8,503)
|
|
8,207
|
|
5,991
|
Total
revenues
|
|
1,086,902
|
|
319,227
|
|
292,573
|
|
161,336
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
271,236
|
|
124,272
|
|
120,237
|
|
42,126
|
|
|
|
|
|
|
|
|
|
Operating
income/(loss)
|
|
815,666
|
|
194,955
|
|
172,336
|
|
119,210
|
|
|
|
|
|
|
|
|
|
Finance costs and loss
on debt extinguishment
|
|
99,135
|
|
78,264
|
|
28,445
|
|
20,452
|
Foreign currency
transactions (gains)/losses
|
|
(21,752)
|
|
7,674
|
|
603
|
|
(1,712)
|
|
|
|
|
|
|
|
|
|
Income/(loss) before
income taxes
|
|
738,283
|
|
109,017
|
|
144,494
|
|
100,470
|
|
|
|
|
|
|
|
|
|
Benefit from/(provision
for) income taxes
|
|
(20,084)
|
|
(11,558)
|
|
(4,534)
|
|
(754)
|
Net
income/(loss)
|
|
718,199
|
|
97,459
|
|
139,960
|
|
99,716
|
|
|
|
|
|
|
|
|
|
Net income/(loss)
attributable to Burford Capital Limited shareholders
|
|
610,522
|
|
30,506
|
|
100,095
|
|
81,914
|
|
|
|
|
|
|
|
|
|
Net income/(loss)
attributable to Burford Capital Limited shareholders per ordinary
share
|
|
|
|
|
|
|
|
|
Basic
|
|
$2.79
|
|
$0.14
|
|
$0.46
|
|
$0.37
|
Diluted
|
|
$2.74
|
|
$0.14
|
|
$0.45
|
|
$0.37
|
Summary Burford-only statement of operations
|
|
Years
ended
December
31,
|
Three months
ended
December 31,
|
($ in
thousands)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenues
|
|
|
|
|
|
|
|
|
Capital provision
income
|
|
896,371
|
|
202,878
|
|
219,969
|
|
122,436
|
Asset management
income
|
|
63,712
|
|
56,080
|
|
22,530
|
|
14,758
|
Services and other
income
|
|
16,459
|
|
(8,353)
|
|
8,116
|
|
5,979
|
Total
revenues
|
|
976,542
|
|
250,605
|
|
250,615
|
|
143,173
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
268,538
|
|
122,696
|
|
118,161
|
|
41,751
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
708,004
|
|
127,909
|
|
132,454
|
|
101,422
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
610,522
|
|
30,506
|
|
100,095
|
|
81,914
|
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$2.79
|
|
$0.14
|
|
$0.46
|
|
$0.37
|
Diluted
|
|
$2.74
|
|
$0.14
|
|
$0.45
|
|
$0.37
|
Reconciliation of summary consolidated statement of
operations to summary Burford-only statement of operations
|
Year ended December
31, 2023
|
|
|
(GAAP)
|
(Non-GAAP)
|
|
|
|
Elimination of
third-party interests
|
|
|
($ in
thousands)
|
Consolidated
|
Strategic
Value Fund
|
BOF-C
|
Colorado
|
Advantage
Fund
|
Other
|
Burford-
only
|
Capital provision
income
|
1,341,923
|
(1,073)
|
(132,094)
|
(277,102)
|
(31,385)
|
(3,898)
|
896,371
|
(Less): Third-party
interests in capital provision assets
|
(279,263)
|
-
|
-
|
277,030
|
-
|
2,233
|
-
|
Asset management
income
|
7,642
|
108
|
55,962
|
-
|
-
|
-
|
63,712
|
Services and other
income
|
16,600
|
(2)
|
(76)
|
-
|
-
|
(63)
|
16,459
|
Total
revenues
|
1,086,902
|
(967)
|
(76,208)
|
(72)
|
(31,385)
|
(1,728)
|
976,542
|
|
|
|
|
|
|
|
|
Operating
expenses
|
271,236
|
(965)
|
369
|
(72)
|
(411)
|
(1,619)
|
268,538
|
|
|
|
|
|
|
|
|
Operating
income
|
815,666
|
(2)
|
(76,577)
|
-
|
(30,974)
|
(109)
|
708,004
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
718,199
|
(2)
|
(76,577)
|
-
|
(30,974)
|
(124)
|
610,522
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December
31, 2022
|
|
(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
|
391,108
|
3,709
|
(112,370)
|
661
|
(1,417)
|
(6,813)
|
202,878
|
(Less): Third-party
interests in capital provision assets
|
(494)
|
-
|
-
|
(693)
|
-
|
1,187
|
-
|
Asset management
income
|
9,116
|
312
|
46,652
|
-
|
-
|
-
|
56,080
|
Services and other
income
|
(8,503)
|
184
|
(3)
|
-
|
-
|
(31)
|
(8,353)
|
Total
revenues
|
319,227
|
4,205
|
(65,721)
|
(32)
|
(1,417)
|
(5,657)
|
250,605
|
|
|
|
|
|
|
|
|
Operating
expenses
|
124,272
|
(995)
|
136
|
(32)
|
(498)
|
(187)
|
122,696
|
|
|
|
|
|
|
|
|
Operating
income
|
194,955
|
5,200
|
(65,857)
|
-
|
(919)
|
(5,470)
|
127,909
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
97,459
|
5,200
|
(65,857)
|
-
|
(919)
|
(5,377)
|
30,506
|
|
|
|
|
|
|
|
|
|
|
Three months
December 31, 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
|
325,810
|
(21)
|
(47,665)
|
(41,371)
|
(11,012)
|
(5,772)
|
219,969
|
(Less): Third-party
interests in capital provision assets
|
(43,319)
|
-
|
-
|
41,320
|
-
|
1,999
|
-
|
Asset management
income
|
1,875
|
-
|
20,655
|
-
|
-
|
-
|
22,530
|
Services and other
income
|
8,207
|
(1)
|
(71)
|
-
|
-
|
(19)
|
8,116
|
Total
revenues
|
292,573
|
(22)
|
(27,081)
|
(51)
|
(11,012)
|
(3,792)
|
250,615
|
|
|
|
|
|
|
|
|
Operating
expenses
|
120,237
|
(32)
|
79
|
(51)
|
(132)
|
(1,940)
|
118,161
|
|
|
|
|
|
|
|
|
Operating
income
|
172,336
|
10
|
(27,160)
|
-
|
(10,880)
|
(1,852)
|
132,454
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
139,960
|
10
|
(27,610)
|
-
|
(10,880)
|
(1,835)
|
100,095
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31, 2022
|
|
|
(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
|
165,942
|
(152)
|
(27,105)
|
(11,907)
|
(1,194)
|
(3,148)
|
122,436
|
(Less): Third-party
interests in capital provision assets
|
(12,622)
|
-
|
-
|
11,877
|
-
|
745
|
-
|
Asset management
income
|
2,025
|
46
|
12,687
|
-
|
-
|
-
|
14,758
|
Services and other
income
|
5,991
|
1
|
(3)
|
-
|
-
|
(10)
|
5,979
|
Total
revenues
|
161,336
|
(105)
|
(14,421)
|
(30)
|
(1,194)
|
(2,413)
|
143,173
|
|
|
|
|
|
|
|
|
Operating
expenses
|
42,126
|
(183)
|
27
|
(30)
|
(145)
|
(44)
|
41,751
|
|
|
|
|
|
|
|
|
Operating
income
|
119,210
|
78
|
(14,448)
|
-
|
(1,049)
|
(2,369)
|
101,422
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
99,716
|
78
|
(14,449)
|
-
|
(1,049)
|
(2,382)
|
81,914
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of consolidated capital provision income
excluding YPF-related assets
|
|
|
|
|
($ in
thousands)
|
|
Year
ended
December 31,
2023
|
|
Three months
ended
December 31,
2023
|
Capital provision
income
|
|
1,341,923
|
|
325,810
|
Less: Capital provision
income from YPF-related assets
|
|
820,011
|
|
124,773
|
Capital provision
income excluding YPF-related assets
|
|
521,912
|
|
201,037
|
Reconciliation of operating expenses from the consolidated
statements of operations to Burford-only statements of
operations
|
|
|
|
|
|
|
|
|
Year ended December
31, 2023
|
|
|
(GAAP)
|
|
(non-GAAP)
|
|
|
|
|
Eliminations
and
|
|
|
($ in
millions)
|
|
Consolidated
|
|
adjustments
|
|
Burford-only
|
Operating
expenses
|
|
271.2
|
|
(2.7)
|
|
268.5
|
Non-cash accruals and
one-time or case expenses:
|
|
|
|
|
|
|
Long-term incentive
compensation including accruals (YPF-related assets)
|
|
69.2
|
|
-
|
|
69.2
|
Long-term incentive
compensation including accruals (CEO and CIO related)
|
|
16.9
|
|
-
|
|
16.9
|
Case-related
expenditures ineligible for inclusion in asset cost
|
|
16.5
|
|
(1.8)
|
|
14.7
|
Legacy asset recovery
incentive compensation including accruals
|
|
17.3
|
|
-
|
|
17.3
|
Expenses related to
audit, professional and corporate legal fees due to the development
of the revised fair value methodology and build-out of quarterly
reporting
|
|
3.3
|
|
-
|
|
3.3
|
Deferred compensation
plan and retirement plan
|
|
7.4
|
|
-
|
|
7.4
|
Total
|
|
130.6
|
|
(1.8)
|
|
128.8
|
Summary consolidated statement of financial position
|
|
|
|
|
($ in
thousands)
|
|
December
31,
2023
|
|
December
31,
2022
|
|
|
|
|
|
Total assets
|
|
5,837,394
|
|
4,288,359
|
|
|
|
|
|
Total
liabilities
|
|
2,629,614
|
|
1,901,289
|
|
|
|
|
|
Total Burford
Capital Limited equity
|
|
2,290,858
|
|
1,742,584
|
|
|
|
|
|
Non-controlling
interests
|
|
916,922
|
|
644,486
|
|
|
|
|
|
Total shareholders'
equity
|
|
3,207,780
|
|
2,387,070
|
|
|
|
|
|
Basic ordinary shares
outstanding
|
|
218,962,441
|
|
218,581,877
|
|
|
|
|
|
Total shareholders'
equity attributable to Burford Capital Limited per basic ordinary
share
|
|
10.46
|
|
7.97
|
Total shareholders'
equity per basic ordinary share
|
|
14.65
|
|
10.92
|
Reconciliation of summary consolidated statement of financial
position to summary Burford-only statement of financial
position
|
December
31, 2023
|
|
(GAAP)
|
(Non-GAAP)
|
|
|
Elimination of
third-party interests
|
|
($ in
thousands)
|
Consolidated
|
Strategic
Value
Fund
|
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
|
|
|
December 31,
2022
|
|
(GAAP)
|
(Non-GAAP)
|
|
|
Elimination of
third-party interests
|
|
($ in
thousands)
|
Consolidated
|
Strategic
Value
Fund
|
BOF-C
|
Colorado
|
Advantage
Fund
|
Other
|
Burford-only
|
|
|
|
|
|
|
|
|
Total assets
|
4,288,359
|
(2,779)
|
(477,590)
|
(409,249)
|
(103,523)
|
(76,792)
|
3,218,426
|
|
|
|
|
|
|
|
|
Total
liabilities
|
1,901,289
|
(228)
|
(4,234)
|
(409,249)
|
(120)
|
(11,616)
|
1,475,842
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
2,387,070
|
(2,551)
|
(473,356)
|
-
|
(103,403)
|
(65,176)
|
1,742,584
|
Reconciliation of components of realizations from a
consolidated basis to a Group-wide basis
|
Year ended
December 31, 2023
|
|
(GAAP)
|
|
(Non-GAAP)
|
($ in
thousands)
|
Consolidated
|
|
Eliminations and
adjustments
|
Burford-
only
|
Other
funds
|
BOF-C
|
Group-wide
|
Capital
provision-direct
|
564,491
|
|
(68,275)
|
496,216
|
112,188
|
124,409
|
732,813
|
Capital
provision-indirect
|
143,802
|
|
(109,392)
|
34,410
|
109,078
|
-
|
143,488
|
Post-settlement
|
-
|
|
-
|
-
|
241,490
|
-
|
241,490
|
Total
realizations
|
708,293
|
|
(177,667)
|
530,626
|
462,756
|
124,409
|
1,117,791
|
|
|
Year ended December
31, 2022
|
|
(GAAP)
|
|
(Non-GAAP)
|
($ in
thousands)
|
Consolidated
|
|
Eliminations and
adjustments
|
Burford-
only
|
Other
funds
|
BOF-C
|
Group-wide
|
Capital
provision-direct
|
402,196
|
|
(51,987)
|
350,209
|
174,707
|
65,988
|
590,904
|
Capital
provision-indirect
|
24,538
|
|
(14,216)
|
10,322
|
28,746
|
-
|
39,068
|
Post-settlement
|
-
|
|
-
|
-
|
104,637
|
-
|
104,637
|
Total
realizations
|
426,734
|
|
(66,203)
|
360,531
|
308,090
|
65,988
|
734,609
|
|
|
Three months ended
December 31, 2023
|
|
(GAAP)
|
|
(Non-GAAP)
|
($ in
thousands)
|
Consolidated
|
|
Eliminations and
adjustments
|
Burford-
only
|
Other
funds
|
BOF-C
|
Group-wide
|
Capital
provision-direct
|
229,077
|
|
(6,962)
|
222,115
|
22,273
|
59,415
|
303,803
|
Capital
provision-indirect
|
84,583
|
|
(70,075)
|
14,508
|
70,076
|
-
|
84,584
|
Post-settlement
|
-
|
|
-
|
-
|
123,183
|
-
|
123,183
|
Total
realizations
|
313,660
|
|
77,037
|
236,623
|
215,532
|
59,415
|
511,570
|
|
|
Three months ended
December 31, 2022
|
|
(GAAP)
|
|
(Non-GAAP)
|
($ in
thousands)
|
Consolidated
|
|
Eliminations and
adjustments
|
Burford-
only
|
Other
funds
|
BOF-C
|
Group-wide
|
Capital
provision-direct
|
165,992
|
|
(8,263)
|
157,729
|
71,871
|
16,445
|
246,045
|
Capital
provision-indirect
|
3,727
|
|
(3,091)
|
636
|
2,997
|
-
|
3,633
|
Post-settlement
|
-
|
|
-
|
-
|
54,188
|
-
|
54,188
|
Total
realizations
|
169,719
|
|
(11,354)
|
158,365
|
129,056
|
16,445
|
303,866
|
Reconciliation of components of deployments from a
consolidated basis to a Group-wide basis
|
Year ended
December 31, 2023
|
|
(GAAP)
|
|
(Non-GAAP)
|
($ in
thousands)
|
Consolidated
|
|
Eliminations and
adjustments
|
Burford-
only
|
Other
funds
|
BOF-C
|
Group-wide
|
Capital
provision-direct
|
505,893
|
|
(123,698)
|
382,195
|
25,679
|
122,352
|
530,226
|
Capital
provision-indirect
|
176,134
|
|
(146,778)
|
29,356
|
146,778
|
-
|
176,134
|
Post-settlement
|
-
|
|
-
|
-
|
85,397
|
-
|
85,397
|
Total
deployments
|
682,027
|
|
(270,476)
|
411,551
|
257,854
|
122,352
|
791,757
|
|
|
Year ended
December 31, 2022
|
|
(GAAP)
|
|
(Non-GAAP)
|
($ in
thousands)
|
Consolidated
|
|
Eliminations and
adjustments
|
Burford-
only
|
Other
funds
|
BOF-C
|
Group-wide
|
Capital
provision-direct
|
605,402
|
|
(148,296)
|
457,106
|
30,574
|
147,976
|
635,656
|
Capital
provision-indirect
|
121,896
|
|
(101,573)
|
20,323
|
101,158
|
-
|
121,481
|
Post-settlement
|
-
|
|
-
|
-
|
170,689
|
-
|
170,689
|
Total
deployments
|
727,298
|
|
(249,869)
|
477,429
|
302,421
|
147,976
|
927,826
|
|
|
Three months ended
December 31, 2023
|
|
(GAAP)
|
|
(Non-GAAP)
|
($ in
thousands)
|
Consolidated
|
|
Eliminations and
adjustments
|
Burford-
only
|
Other
funds
|
BOF-C
|
Group-wide
|
Capital
provision-direct
|
104,678
|
|
(26,915)
|
77,763
|
8,317
|
24,577
|
110,657
|
Capital
provision-indirect
|
31,083
|
|
(25,902)
|
5,181
|
25,902
|
-
|
31,083
|
Post-settlement
|
-
|
|
-
|
-
|
42,125
|
-
|
42,125
|
Total
deployments
|
135,761
|
|
(52,817)
|
82,944
|
76,344
|
24,577
|
183,865
|
|
|
Three months ended
December 31, 2022
|
|
(GAAP)
|
|
(Non-GAAP)
|
($ in
thousands)
|
Consolidated
|
|
Eliminations and
adjustments
|
Burford-
only
|
Other
funds
|
BOF-C
|
Group-wide
|
Capital
provision-direct
|
223,920
|
|
(42,233)
|
181,687
|
9,630
|
42,517
|
233,834
|
Capital
provision-indirect
|
92,067
|
|
(76,874)
|
15,193
|
75,960
|
-
|
91,153
|
Post-settlement
|
-
|
|
-
|
-
|
120,118
|
-
|
120,118
|
Total
deployments
|
315,987
|
|
(119,107)
|
196,880
|
205,708
|
42,517
|
445,105
|
Reconciliation of consolidated proceeds from capital
provision assets to Burford-only cash receipts
($ in
thousands)
|
|
Year ended December
31, 2023
|
Year ended December
31, 2022
|
Consolidated
proceeds from capital provision assets
|
|
559,362
|
387,786
|
Less: Elimination of
third-party interests
|
|
(117,296)
|
(81,857)
|
Burford-only total
proceeds from capital provision assets
|
|
442,066
|
305,929
|
Burford-only proceeds
from capital provision-direct assets
|
|
414,726
|
295,636
|
Burford-only proceeds
from capital provision-indirect assets
|
|
27,340
|
10,293
|
Burford-only total
proceeds from capital provision assets
|
|
442,066
|
305,929
|
Consolidated asset
management income
|
|
7,642
|
9,116
|
Plus: Eliminated
income from funds
|
|
56,070
|
46,964
|
Burford-only asset
management income
|
|
63,712
|
56,080
|
Less: Non-cash
adjustments(1)
|
|
(31,391)
|
(41,321)
|
Burford-only
proceeds from asset management income
|
|
32,321
|
14,759
|
Burford-only proceeds
from marketable security interest and dividends
|
|
6,297
|
3,585
|
Burford-only proceeds
from other income
|
|
7,875
|
3,713
|
Burford-only proceeds
from non-recurring items
|
|
650
|
-
|
Burford-only
proceeds from other items
|
|
14,822
|
7,298
|
Cash
receipts
|
|
489,209
|
327,986
|
(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)
|
|
Three months
ended
December 31, 2023
|
Three months
ended
December 31, 2022
|
Consolidated
proceeds from capital provision assets
|
|
119,208
|
105,464
|
Less: Elimination of
third-party interests
|
|
(22,709)
|
(11,720)
|
Burford-only total
proceeds from capital provision assets
|
|
96,499
|
93,744
|
Burford-only proceeds
from capital provision-direct assets
|
|
95,490
|
93,137
|
Burford-only proceeds
from capital provision-indirect assets
|
|
1,009
|
607
|
Burford-only total
proceeds from capital provision assets
|
|
96,499
|
93,744
|
Consolidated asset
management income
|
|
1,875
|
2,025
|
Plus: Eliminated
income from funds
|
|
20,655
|
12,733
|
Burford-only asset
management income
|
|
22,530
|
14,758
|
Less: Non-cash
adjustments(1)
|
|
(19,254)
|
(11,794)
|
Burford-only
proceeds from asset management income
|
|
3,276
|
2,964
|
Burford-only proceeds
from marketable security interest and dividends
|
|
2,672
|
1,740
|
Burford-only proceeds
from other income
|
|
6,380
|
66
|
Burford-only proceeds
from non-recurring items
|
|
650
|
-
|
Burford-only
proceeds from other items
|
|
9,702
|
1,806
|
Cash
receipts
|
|
109,477
|
98,514
|
(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
|
|
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
|
|
2,200,935
|
Fair value
|
|
4,859,879
|
|
(1,472,278)
|
|
3,387,601
|
|
596,487
|
|
648,473
|
|
4,632,561
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital provision
assets - indirect:
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
December 31, 2022
|
|
|
(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
|
|
1,934,662
|
|
(448,512)
|
|
1,486,150
|
|
422,098
|
|
383,322
|
|
2,291,570
|
Plus: Fair
value adjustments
|
|
1,687,641
|
|
(569,786)
|
|
1,117,855
|
|
133,122
|
|
133,660
|
|
1,384,637
|
Fair value
|
|
3,622,303
|
|
(1,018,298)
|
|
2,604,005
|
|
555,220
|
|
516,982
|
|
3,676,207
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital provision
assets - indirect:
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value
|
|
113,253
|
|
(81,839)
|
|
31,414
|
(1)
|
81,840
|
|
-
|
|
113,254
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital
provision assets
|
|
3,735,556
|
|
(1,100,136)
|
|
2,635,419
|
|
637,060
|
|
516,982
|
|
3,789,461
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post-settlement
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Deployed
cost
|
|
-
|
|
-
|
|
-
|
|
358,193
|
|
-
|
|
358,193
|
Plus: Fair
value adjustments
|
|
-
|
|
-
|
|
-
|
|
81,067
|
|
-
|
|
81,067
|
Fair value
|
|
-
|
|
-
|
|
-
|
|
439,260
|
|
-
|
|
439,260
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Undrawn
commitments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
provision-direct
|
|
1,671,327
|
|
(372,279)
|
|
1,299,048
|
|
182,372
|
|
371,724
|
|
1,853,144
|
Capital
provision-indirect
|
|
49,400
|
|
(41,167)
|
|
8,233
|
|
41,167
|
|
-
|
|
49,400
|
Post-settlement
|
|
-
|
|
-
|
|
-
|
|
15,606
|
|
-
|
|
15,606
|
Total undrawn
commitments
|
|
1,720,727
|
|
(413,446)
|
|
1,307,281
|
|
239,145
|
|
371,724
|
|
1,918,150
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
portfolio
|
|
5,456,283
|
|
(1,513,583)
|
|
3,942,700
|
|
1,315,465
|
|
888,706
|
|
6,146,871
|
(1) The fair value of $2,635.4
million for the Burford-only capital provision assets did
not include an additional $1.0
million for the Burford only portion of the receivable from
due from settlement of capital provision assets on concluded assets
in the Strategic Value Fund for a total fair value of $2,636.4 million for Burford-only capital
provision assets as noted in the table under "Reconciliation of
consolidated to Burford-only fair value of the YPF-related
assets".
Reconciliation of consolidated to Burford-only cash and
cash equivalents and marketable securities
|
December 31, 2023
|
|
December
31, 2022
|
|
(GAAP)
|
(Non-GAAP)
|
|
(GAAP)
|
(Non-GAAP)
|
($ in
thousands)
|
Consolidated
|
Elimination
of third-
party
interests
|
Burford-only
|
|
Consolidated
|
Elimination
of third-
party
interests
|
Burford-only
|
Cash and cash
equivalents
|
220,549
|
(24,634)
|
195,915
|
|
107,658
|
(33,979)
|
73,679
|
Marketable
securities
|
107,561
|
-
|
107,561
|
|
136,358
|
-
|
136,358
|
Total cash and cash
equivalents and marketable securities
|
328,110
|
(24,634)
|
303,476
|
|
244,016
|
(33,979)
|
210,037
|
Reconciliation of consolidated to Burford-only fair
value of the YPF-related assets
|
December 31, 2023
|
|
December
31, 2022
|
|
(GAAP)
|
(Non-GAAP)
|
|
(GAAP)
|
(Non-GAAP)
|
($ in
thousands)
|
Consolidated
|
Elimination
of third-party
interests
|
Burford-
only
|
|
Consolidated
|
Elimination
of third-party
interests
|
Burford-
only
|
YPF-related
assets
|
2,058,117
|
(686,460)
|
1,371,657
|
|
1,232,549
|
(409,514)
|
823,035
|
Other assets
|
2,987,271
|
(926,816)
|
2,060,455
|
|
2,503,007
|
(689,602)
|
1,813,405
|
Capital provision
assets
|
5,045,388
|
(1,613,276)
|
3,432,112
|
|
3,735,556
|
(1,099,116)
|
2,636,440
|
Reconciliation of consolidated to Burford-only fair
value adjustment during the period, net of previously recognized
unrealized gains transferred to realized gains on YPF-related
assets
|
December 31, 2023
|
|
December
31, 2022
|
|
(GAAP)
|
(Non-GAAP)
|
|
(GAAP)
|
(Non-GAAP)
|
($ in
thousands)
|
Consolidated
|
Elimination
of third-party
interests
|
Burford-
only
|
|
Consolidated
|
Elimination
of third-party
interests
|
Burford-
only
|
YPF-related
income
|
820,011
|
(277,102)
|
542,909
|
|
(2,715)
|
502
|
(2,213)
|
Excluding YPF-related
income
|
261,633
|
(103,704)
|
157,929
|
|
171,819
|
(100,049)
|
71,770
|
Capital provision
income-unrealized
|
1,081,644
|
(380,806)
|
700,838
|
|
169,104
|
(99,547)
|
69,557
|
Reconciliation of consolidated to Burford-only due from
settlement of capital provision assets
|
December 31, 2023
|
|
December
31, 2022
|
|
(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
|
265,540
|
(80,273)
|
185,267
|
|
116,582
|
(1,932)
|
114,650
|
Reconciliation of consolidated to Burford-only realized
gains on capital provision-direct assets
|
|
|
Periods ended
December 31, 2023 and 2022
|
|
(GAAP)
|
|
|
(Non-GAAP)
|
($ in
thousands)
|
Consolidated
|
Eliminations
and
adjustments
|
Burford-
only total
|
Burford-only
Capital
provision-direct
|
Burford-only
Capital
provision-indirect
|
Realized gains for the
year ended December 31, 2023
|
251,618
|
(64,242)
|
187,376
|
186,443
|
933
|
Realized gains for the
year ended December 31, 2022
|
161,707
|
(27,234)
|
134,473
|
133,357
|
1,116
|
Realized gains for the
three months ended December 31, 2023
|
80,287
|
(17,431)
|
62,856
|
62,904
|
(48)
|
Realized gains for the
three months ended December 31, 2022
|
75,898
|
(5,381)
|
70,517
|
70,487
|
30
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of shareholders' equity attributable
to Burford Capital Limited per ordinary share
|
|
|
|
|
($ in thousands,
except share data)
|
|
December 31,
2023
|
|
December 31,
2022
|
Total shareholders'
equity
|
|
3,207,780
|
|
2,387,070
|
Less:
Non-controlling interests
|
|
(916,922)
|
|
(644,486)
|
Total Burford
Capital Limited equity
|
|
2,290,858
|
|
1,742,584
|
Basic ordinary shares
outstanding
|
|
218,962,441
|
|
218,581,877
|
Shareholders' equity
attributable to Burford Capital Limited per ordinary
share
|
|
$10.46
|
|
$7.97
|
Reconciliation of tangible book value attributable
to Burford Capital Limited per ordinary share
|
|
|
|
|
($ in thousands,
except share data)
|
|
December 31,
2023
|
|
December 31,
2022
|
Total shareholders'
equity
|
|
3,207,780
|
|
2,387,070
|
Less:
Non-controlling interests
|
|
(916,922)
|
|
(644,486)
|
Total Burford
Capital Limited equity
|
|
2,290,858
|
|
1,742,584
|
Less:
Goodwill
|
|
(133,965)
|
|
(133,912)
|
Tangible book value
attributable to Burford Capital Limited
|
|
2,156,893
|
|
1,608,672
|
Basic ordinary shares
outstanding
|
|
218,962,441
|
|
218,581,877
|
Tangible book value
attributable to Burford Capital Limited per ordinary
share
|
|
$9.85
|
|
$7.36
|
Reconciliation of Return on tangible equity
|
|
|
|
|
($ in thousands,
except share data)
|
|
December 31,
2023
|
|
December 31,
2022
|
Net
income/(loss)
|
|
718,199
|
|
97,459
|
Less: Net income/(loss)
attributable to noncontrolling interests
|
|
(107,677)
|
|
(66,953)
|
Net income/(loss)
attributable to Burford Capital Limited
|
|
610,522
|
|
30,506
|
|
|
|
|
|
Total shareholders'
equity at beginning of period
|
|
2,387,070
|
|
2,108,017
|
Less:
Non-controlling interests at beginning of period
|
|
(644,486)
|
|
(412,145)
|
Total Burford
Capital Limited equity at beginning of period
|
|
1,742,584
|
|
1,695,872
|
Less:
Goodwill at beginning of period
|
|
(133,912)
|
|
(134,019)
|
Tangible book value
attributable to Burford Capital Limited at beginning of
period
|
|
1,608,672
|
|
1,561,853
|
|
|
|
|
|
Total shareholders'
equity at end of period
|
|
3,207,780
|
|
2,387,070
|
Less:
Non-controlling interests at end of period
|
|
(916,922)
|
|
(644,486)
|
Total Burford
Capital Limited equity at end of period
|
|
2,290,858
|
|
1,742,584
|
Less:
Goodwill at end of period
|
|
(133,965)
|
|
(133,912)
|
Tangible book value
attributable to Burford Capital Limited at end of
period
|
|
2,156,893
|
|
1,608,672
|
|
|
|
|
|
Average tangible
book value attributed to Burford Capital Limited
|
|
1,882,783
|
|
1,585,263
|
|
|
|
|
|
Return on tangible
equity
|
|
32 %
|
|
2 %
|
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 provide a measure of the cash that our
capital provision and other assets generate during a given period
as well as cash from certain other fees and income. In particular,
cash receipts represent the cash generated from capital provision
and other assets, including cash proceeds from realized or
concluded assets and any related hedging assets, and cash received
from asset management income, services and/or other income, 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.
- Return on tangible equity ("ROTE") is Burford-only
net income/(loss) divided by the average of tangible equity at the
beginning and end of the relevant period, with tangible equity
calculated as total Burford Capital Limited equity less goodwill.
ROTE 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 net
income/(loss) attributable to Burford Capital Limited shareholders
as set forth in our consolidated statements of operations. We
believe ROTE is an important measure of our operating and financial
performance and is 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, 2022 filed with
the US Securities and Exchange Commission on May 16, 2023 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.
The 2023 financial information contained in this release and the
accompanying earnings presentation is unaudited; our final audited
numbers could vary materially from the information contained
herein.
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SOURCE Burford Capital