EX-99.1 2 tmb-20241107xex99d1.htm EX-99.1

Graphic

November 7, 2024

inancial results at and for the three and nine months ended September 30, 2024.

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.

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.

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%


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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

o

Core portfolio realizations of $380 million in YTD24 up 39% compared to YTD23 and diversified across 40 assets

o

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

o

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

o

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

o

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

o

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

o

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

o

Definitive undrawn commitments of $727 million at September 30, 2024 up 25% in YTD24 and support deployment activity looking forward

2


Graphic

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

o

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

o

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

o

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%)

3


Graphic

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)

o

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)

o

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

+1 212 516 5824

EMEA & Asia: Rob Bailhache, Head of EMEA & Asia Investor Relations

+44 (0)20 3530 2023

For press inquiries:

David Helfenbein, Vice President, Public Relations

+1 (212) 516 5824

Deutsche Numis - NOMAD and Joint Broker

+44 (0)20 7260 1000

Giles Rolls

Charlie Farquhar

4


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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

5


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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

6


Graphic


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

7


Graphic

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

9


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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

10


Graphic

Three months ended September 30, 2023

(GAAP)

(Non-GAAP)

($ in thousands)

Consolidated

 

Eliminations and adjustments

 Burford-only 

Other funds

 BOF-C 

Group-wide

Capital provision-direct

69,690

(13,704)

55,986

4,379

21,819

82,184

Capital provision-indirect

32,257

(26,881)

5,376

26,881

-

32,257

Post-settlement

-

-

-

7,466

-

7,466

Total deployments

101,947

(40,585)

61,362

38,726

21,819

121,907

Nine months ended September 30, 2024

(GAAP)

(Non-GAAP)

($ in thousands)

Consolidated

 

Eliminations and adjustments

 Burford-only 

Other funds

 BOF-C 

Group-wide

Capital provision-direct

332,788

(69,685)

263,103

12,763

73,498

349,364

Capital provision-indirect

68,106

(56,755)

11,351

56,755

-

68,106

Post-settlement

-

-

-

39,836

-

39,836

Total deployments

400,894

(126,440)

274,454

109,354

73,498

457,306

Nine months ended September 30, 2023

(GAAP)

(Non-GAAP)

($ in thousands)

Consolidated

 

Eliminations and adjustments

 Burford-only 

Other funds

 BOF-C 

Group-wide

Capital provision-direct

401,215

(96,783)

304,432

17,362

97,775

419,569

Capital provision-indirect

145,051

(120,876)

24,175

120,876

-

145,051

Post-settlement

-

-

-

43,272

-

43,272

Total deployments

546,266

(217,659)

328,607

181,510

97,775

607,892

Reconciliation of consolidated proceeds from capital provision assets to Burford-only cash receipts

($ in thousands)

Three months ended September 30, 2024

Three months ended September 30, 2023

Consolidated proceeds from capital provision assets

395,943

132,147

Less: Elimination of third-party interests

(91,185)

(7,074)

Burford-only total proceeds from capital provision assets

340,758

125,073

Burford-only proceeds from capital provision-direct assets

301,345

105,915

Less: Funding of financial liabilities at fair value through profit or loss

(2,583)

-

Burford-only proceeds from capital provision-direct assets (adjusted)

298,765

105,915

Burford-only proceeds from capital provision-indirect assets

3,413

19,158

Burford-only total proceeds from capital provision assets

302,175

125,073

Consolidated asset management income

3,147

1,876

Plus: Eliminated income from funds

7,963

14,265

Burford-only asset management income

11,110

16,141

Less: Non-cash adjustments(1)

(9,389)

(10,409)

Burford-only proceeds from asset management income

1,721

5,732

Burford-only proceeds from marketable security interest and dividends

4,567

2,062

Burford-only proceeds from other income

2,028

(73)

Burford-only proceeds from other items

6,595

1,989

Cash receipts

310,491

132,794

(1) Adjustments for the change in asset management receivables accrued during the applicable period but not yet received at the end of such period.

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Graphic

($ 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

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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

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Graphic

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

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Graphic

Reconciliation of consolidated to Burford-only capital provision income

Three months ended September 30, 2024

Three months ended September 30, 2023

(GAAP)

(Non-GAAP)

(GAAP)

(Non-GAAP)

($ in thousands)

Consolidated

Elimination of third-party interests

Burford-only

Consolidated

Elimination of third-party interests

Burford-only

Net realized gains/(losses)

86,940

(30,450)

56,490

37,566

(7,440)

30,126

Fair value adjustment during the period, net of previously recognized unrealized gains/(losses) transferred to realized gains/(losses) (excluding-YPF)

75,684

(554)

75,130

46,125

(32,339)

13,786

Income on capital provision assets, excluding YPF

162,624

(31,004)

131,620

83,691

(39,779)

43,912

Fair value adjustment during the period, net of previously recognized unrealized gains/(losses) transferred to realized gains/(losses) (YPF-only)

104,135

(34,546)

69,589

417,920

(140,690)

277,230

Other

4,229

(477)

3,752

2,902

951

3,853

Total capital provision income

270,988

(66,027)

204,961

504,513

(179,518)

324,995

Nine months ended September 30, 2024

Nine months ended September 30, 2023

(GAAP)

(Non-GAAP)

(GAAP)

(Non-GAAP)

($ in thousands)

Consolidated

Elimination of third-party interests

Burford-only

Consolidated

Elimination of third-party interests

Burford-only

Net realized gains/(losses)

262,273

(76,736)

185,537

171,331

(46,811)

124,520

Fair value adjustment during the period, net of previously recognized unrealized gains/(losses) transferred to realized gains/(losses) (excluding-YPF)

63,406

(3,322)

60,084

142,799

(57,472)

85,327

Income on capital provision assets, excluding YPF

325,679

(80,058)

245,621

314,130

(104,283)

209,847

Fair value adjustment during the period, net of previously recognized unrealized gains/(losses) transferred to realized gains/(losses) (YPF-only)

141,782

(47,372)

94,410

695,238

(235,731)

459,507

Other

2,033

160

2,193

6,745

303

7,048

Total capital provision income

469,494

(127,270)

342,224

1,016,113

(339,711)

676,402

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Graphic

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.

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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.

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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

18


Graphic

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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