[Executive Summary & Highlights](index=1&type=section&id=1.%20Executive%20Summary%20%26%20Highlights) Burford Capital reported an extraordinary 2023, with substantial growth in earnings, revenues, and tangible book value [CEO Commentary](index=1&type=section&id=1.1.%20CEO%20Commentary) CEO Christopher Bogart highlights an "extraordinary year" for Burford Capital in 2023, with earnings per share rising 19x to $2.74, consolidated total revenues tripling to $1.1 billion, and a Burford-only net income margin of 63% - 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[21](index=21&type=chunk) - We achieved a Burford-only net income margin of **63%**[21](index=21&type=chunk) - Our ROTE soared to **32%** in 2023 from **2%** in 2022, and we increased tangible book value by **34% to $9.85**[21](index=21&type=chunk) [Key Consolidated Financial Highlights (Unaudited)](index=1&type=section&id=1.2.%20Key%20Consolidated%20Financial%20Highlights%20(Unaudited)) Consolidated financial results for 2023 showed substantial growth across key metrics, with capital provision income increasing by 321%, total revenues by 240%, and net income attributable to shareholders by 1,901% Consolidated Income Statement Metrics (US GAAP, $ in thousands) | Metric (US GAAP, $ in thousands) | 2023 | 2022 | % Change | | :------------------------------- | :---------- | :---------- | :------- | | Capital provision income | 1,341,923 | 319,108 | 321% | | Total revenues | 1,086,902 | 319,227 | 240% | | Operating expenses | 271,236 | 124,272 | 118% | | Net income attributable to Burford Capital Limited shareholders | 610,522 | 30,506 | 1,901% | | Per diluted ordinary share | 2.74 | 0.14 | 1,857% | Consolidated Balance Sheet Metrics (US GAAP, $ in thousands) | Metric (US GAAP, $ in thousands) | Dec 31, 2023 | Dec 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% | | Total shareholders' equity | 3,207,780 | 2,387,070 | 34% | | Total liabilities and shareholders' equity | 5,837,394 | 4,288,359 | 36% | [Key Burford-only Operational & Financial Highlights (Non-GAAP)](index=2&type=section&id=1.3.%20Key%20Burford-only%20Operational%20%26%20Financial%20Highlights%20(Non-GAAP)) Burford-only results for FY23 demonstrated strong operational performance, with realized gains up 40% to $186 million, realizations up 42% to $496 million, and cash receipts up 49% to $489 million, alongside significant earnings growth and a 32% ROTE Burford-only Operational Metrics (Non-GAAP, $ in thousands) | Metric (Burford-only, $ in thousands) | 2023 | 2022 | % Change | | :------------------------------------ | :-------- | :-------- | :------- | | Realized gains | 186,443 | 133,357 | 40% | | Realizations | 496,216 | 350,209 | 42% | | Cash receipts | 489,209 | 327,986 | 49% | | Deployments | 382,195 | 457,106 | -16% | | New commitments | 691,086 | 726,273 | -5% | - Realized gains in FY23 up **40% to $186 million** from the prior year (FY22: $133 million), with no contribution from the YPF-related assets[50](index=50&type=chunk) - Cash receipts in FY23 up **49% to $489 million** (FY22: $328 million) and meaningfully exceeded total operating expenses and finance costs[50](index=50&type=chunk)[84](index=84&type=chunk) - 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[50](index=50&type=chunk) Burford-only Income Statement Metrics (Non-GAAP, $ in thousands) | Metric (Burford-only, $ in thousands) | 2023 | 2022 | % Change | | :------------------------------------ | :-------- | :-------- | :------- | | Total revenues | 976,542 | 250,605 | 290% | | Operating expenses | 268,538 | 122,696 | 119% | | Operating income/(loss) | 708,004 | 127,909 | 454% | | Net income/(loss) | 610,522 | 30,506 | 1901% | | Net income per diluted share | $2.74 | $0.14 | 1901% | - 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[52](index=52&type=chunk) - Burford-only ROTE for FY23 of **32%** (FY22: 2%)[52](index=52&type=chunk) [Financial Statements & Reconciliations](index=11&type=section&id=2.%20Financial%20Statements%20%26%20Reconciliations) This section presents detailed consolidated and Burford-only financial statements, covering operations, financial position, and key performance metrics [Consolidated Statements of Operations (GAAP)](index=11&type=section&id=2.1.%20Consolidated%20Statements%20of%20Operations%20(GAAP)) The consolidated statements of operations show significant growth in 2023 compared to 2022, with capital provision income increasing by 321%, total revenues by 240%, and net income attributable to Burford Capital Limited shareholders by 1,901% Consolidated Statements of Operations (US GAAP, $ in thousands) | Metric (US GAAP, $ in thousands) | 2023 | 2022 | % Change | | :------------------------------- | :---------- | :---------- | :------- | | Capital provision income | 1,341,923 | 319,108 | 321% | | Asset management income | 7,642 | 9,116 | -16% | | Services and other income | 16,600 | (8,503) | N/A | | Total revenues | 1,086,902 | 319,227 | 240% | | Total operating expenses | 271,236 | 124,272 | 118% | | Operating income/(loss) | 815,666 | 194,955 | 318% | | Net income attributable to Burford Capital Limited shareholders | 610,522 | 30,506 | 1,901% | [Burford-only Statements of Operations (Non-GAAP)](index=11&type=section&id=2.2.%20Burford-only%20Statements%20of%20Operations%20(Non-GAAP)) Burford-only operations also demonstrated strong performance in 2023, with capital provision income increasing by 342%, total revenues by 290%, operating income by 454%, and net income by 1901% to $610.5 million Burford-only Statements of Operations (Non-GAAP, $ in thousands) | Metric (Burford-only, $ in thousands) | 2023 | 2022 | % Change | | :------------------------------------ | :-------- | :-------- | :------- | | Capital provision income | 896,371 | 202,878 | 342% | | Asset management income | 63,712 | 56,080 | 14% | | Services and other income | 16,459 | (8,353) | N/A | | Total revenues | 976,542 | 250,605 | 290% | | Operating expenses | 268,538 | 122,696 | 119% | | Operating income | 708,004 | 127,909 | 454% | | Net income | 610,522 | 30,506 | 1901% | | Net income per diluted share (Diluted)| $2.74 | $0.14 | 1857% | - Total operating expenses in 2023 include almost **$130 million** of non-cash accruals and one-time or case expenses[52](index=52&type=chunk)[40](index=40&type=chunk) [Consolidated Statements of Financial Position (GAAP)](index=14&type=section&id=2.3.%20Consolidated%20Statements%20of%20Financial%20Position%20(GAAP)) The consolidated balance sheet shows significant growth from December 31, 2022, to December 31, 2023, with total assets increasing by 36% to $5.8 billion, total liabilities by 38% to $2.6 billion, and total shareholders' equity by 34% to $3.2 billion Consolidated Statements of Financial Position (US GAAP, $ in thousands) | Metric (US GAAP, $ in thousands) | Dec 31, 2023 | Dec 31, 2022 | % Change | | :------------------------------- | :----------- | :----------- | :------- | | Total assets | 5,837,394 | 4,288,359 | 36% | | Total liabilities | 2,629,614 | 1,901,289 | 38% | | Total Burford Capital Limited equity | 2,290,858 | 1,742,584 | 31% | | Non-controlling interests | 916,922 | 644,486 | 42% | | Total shareholders' equity | 3,207,780 | 2,387,070 | 34% | [Burford-only Statements of Financial Position (Non-GAAP)](index=14&type=section&id=2.4.%20Burford-only%20Statements%20of%20Financial%20Position%20(Non-GAAP)) Burford-only financial position at December 31, 2023, shows total assets of $4.2 billion, total liabilities of $1.9 billion, and total shareholders' equity of $2.3 billion, derived after various eliminations and adjustments Burford-only Statements of Financial Position (Non-GAAP, $ in thousands) | Metric (Burford-only, $ in thousands) | Dec 31, 2023 | | :------------------------------------ | :----------- | | Total assets | 4,215,864 | | Total liabilities | 1,925,006 | | Total shareholders' equity | 2,290,858 | [Realizations](index=15&type=section&id=2.5.%20Realizations) Total Group-wide realizations for the year ended December 31, 2023, increased to $1.1 billion from $734.6 million in 2022, while Burford-only realizations rose 42% to $496.2 million Group-wide Realizations ($ in thousands) | Metric ($ in thousands) | 2023 (Group-wide) | 2022 (Group-wide) | % Change | | :---------------------- | :---------------- | :---------------- | :------- | | Total realizations | 1,117,791 | 734,609 | 52.2% | Burford-only Realizations ($ in thousands) | Metric ($ in thousands) | 2023 (Burford-only) | 2022 (Burford-only) | % Change | | :---------------------- | :------------------ | :------------------ | :------- | | Total realizations | 530,626 | 360,531 | 47.2% | | Capital provision-direct| 496,216 | 350,209 | 41.7% | | Capital provision-indirect| 34,410 | 10,322 | 233.4% | Q4 Group-wide Realizations ($ in thousands) | Metric ($ in thousands) | Q4 2023 (Group-wide) | Q4 2022 (Group-wide) | % Change | | :---------------------- | :------------------- | :------------------- | :------- | | Total realizations | 511,570 | 303,866 | 68.4% | [Deployments](index=15&type=section&id=2.6.%20Deployments) Group-wide total deployments for the year ended December 31, 2023, were $791.8 million, a decrease from $927.8 million in 2022, with Burford-only deployments also decreasing by 16% to $382.2 million Group-wide Deployments ($ in thousands) | Metric ($ in thousands) | 2023 (Group-wide) | 2022 (Group-wide) | % Change | | :---------------------- | :---------------- | :---------------- | :------- | | Total deployments | 791,757 | 927,826 | -14.6% | Burford-only Deployments ($ in thousands) | Metric ($ in thousands) | 2023 (Burford-only) | 2022 (Burford-only) | % Change | | :---------------------- | :------------------ | :------------------ | :------- | | Total deployments | 411,551 | 477,429 | -13.8% | | Capital provision-direct| 382,195 | 457,106 | -16.3% | - 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[50](index=50&type=chunk) [Cash & Liquidity](index=5&type=section&id=2.7.%20Cash%20%26%20Liquidity) Burford's liquidity position significantly improved in 2023, with total liquidity increasing by 44% to $303.5 million, cash and cash equivalents surging by 166% to $195.9 million, and cash receipts up 49% to $489.2 million Burford-only Cash and Liquidity ($ in thousands) | Metric (Burford-only, $ in thousands) | Dec 31, 2023 | Dec 31, 2022 | % Change | | :------------------------------------ | :----------- | :----------- | :------- | | Cash and cash equivalents | 195,915 | 73,679 | 166% | | Marketable securities | 107,561 | 136,358 | -21% | | Total liquidity | 303,476 | 210,037 | 44% | | Due from settlement of capital provision assets | 185,267 | 114,650 | 62% | Burford-only Cash Receipts ($ in thousands) | Metric (Burford-only, $ in thousands) | 2023 | 2022 | % Change | | :------------------------------------ | :-------- | :-------- | :------- | | Cash receipts | 489,209 | 327,986 | 49% | - 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[31](index=31&type=chunk) [YPF-related Assets](index=21&type=section&id=2.8.%20YPF-related%20Assets) YPF-related assets significantly contributed to unrealized gains in 2023, generating $542.9 million for Burford-only, primarily due to favorable judgments, with their fair value reaching $1.37 billion Burford-only YPF-related Income ($ in thousands) | Metric (Burford-only, $ in thousands) | Dec 31, 2023 | Dec 31, 2022 | | :------------------------------------ | :----------- | :----------- | | YPF-related income | 542,909 | (2,213) | | Capital provision income-unrealized | 700,838 | 69,557 | - YPF-related assets generated **$543 million** of unrealized gains in FY23, due mainly to favorable summary judgment in the first quarter of 2023 and favorable final judgment in the third quarter of 2023[52](index=52&type=chunk) Burford-only YPF-related Assets Fair Value ($ in thousands) | Metric (Burford-only, $ in thousands) | Dec 31, 2023 | Dec 31, 2022 | | :------------------------------------ | :----------- | :----------- | | YPF-related assets (Fair Value) | 1,371,657 | 823,035 | [Tangible Book Value & ROTE](index=22&type=section&id=2.9.%20Tangible%20Book%20Value%20%26%20ROTE) Tangible book value attributable to Burford Capital Limited increased by 34% to $2.16 billion, with tangible book value per ordinary share rising to $9.85, and ROTE significantly improving from 2% to 32% Tangible Book Value ($ in thousands, except per share data) | Metric ($ in thousands, except per share data) | Dec 31, 2023 | Dec 31, 2022 | % Change | | :--------------------------------------------- | :----------- | :----------- | :------- | | Tangible book value attributable to Burford Capital Limited | 2,156,893 | 1,608,672 | 34% | | Tangible book value per ordinary share | $9.85 | $7.36 | 34% | Return on Tangible Equity (ROTE) | Metric | 2023 | 2022 | | :----- | :--- | :--- | | ROTE | 32% | 2% | - Total Burford Capital Limited equity at end of period increased to **$2,290,858 thousand** in 2023 from **$1,742,584 thousand** in 2022[12](index=12&type=chunk) [SEC Reporting & Corporate Information](index=7&type=section&id=3.%20SEC%20Reporting%20%26%20Corporate%20Information) This section outlines Burford's SEC reporting plans, provides a company overview, and lists investor and media contacts [SEC Reporting Update](index=7&type=section&id=3.1.%20SEC%20Reporting%20Update) Burford anticipates filing its annual report on Form 20-F within 30 days, expecting it to be its last before transitioning to Form 10-K for the 2024 fiscal year, while also reporting a material weakness in internal control over financial reporting without identified material accounting errors - 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[56](index=56&type=chunk) - 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. To be clear, this is an issue of internal documentation of a management process; no material accounting errors were identified as a result[32](index=32&type=chunk) [About Burford Capital](index=9&type=section&id=3.2.%20About%20Burford%20Capital) Burford Capital is a leading global finance and asset management firm specializing in law, offering litigation finance, risk management, asset recovery, and various legal finance and advisory services, publicly traded on the NYSE and LSE with worldwide offices - 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[59](index=59&type=chunk) - 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[59](index=59&type=chunk) [Investor & Media Contacts](index=7&type=section&id=3.3.%20Investor%20%26%20Media%20Contacts) Provides contact information for investor relations, press inquiries, and joint brokers (Deutsche Numis, Jefferies International Limited, Berenberg) for Burford Capital - Contact information for investor and analyst inquiries: Robert Bailhache, Head of Investor Relations, EMEA and Asia (**+44 (0)20 3530 2023**); Jim Ballan, Head of Investor Relations, Americas (**+1 (646) 793 9176**)[57](index=57&type=chunk) - Contact information for press inquiries: David Helfenbein, Vice President, Public Relations (**+1 (212) 235 6824**)[57](index=57&type=chunk) - Joint Brokers: **Deutsche Numis**, **Jefferies International Limited**, **Berenberg**[57](index=57&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk) [Definitions and Non-GAAP Measures](index=24&type=section&id=4.%20Definitions%20and%20Non-GAAP%20Measures) This section defines Burford's capital provision asset categories, key performance metrics, and non-GAAP financial measures [Capital Provision Asset Categories](index=24&type=section&id=4.1.%20Capital%20Provision%20Asset%20Categories) Burford categorizes its financial reporting and capital provision assets into "Consolidated" (US GAAP), "Burford-only" (proprietary basis), and "Group-wide" (totality of assets managed), further dividing capital provision assets into "Direct" and "Indirect" - 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[13](index=13&type=chunk) - **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**[93](index=93&type=chunk) - **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[93](index=93&type=chunk) - **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[93](index=93&type=chunk) - **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[13](index=13&type=chunk) - **Indirect**, which includes our balance sheet's participations in one of our private funds (i.e., Burford Advantage Master Fund LP)[13](index=13&type=chunk) [Key Performance Metrics Definitions](index=24&type=section&id=4.2.%20Key%20Performance%20Metrics%20Definitions) This section defines key performance metrics used by Burford, including Internal Rate of Return (IRR), Return on Invested Capital (ROIC), and YPF-related assets - **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[74](index=74&type=chunk) - **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[74](index=74&type=chunk) - **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[75](index=75&type=chunk) [Non-GAAP Financial Measures Definitions](index=26&type=section&id=4.3.%20Non-GAAP%20Financial%20Measures%20Definitions) This section defines specific non-GAAP financial measures used by Burford, including Book value per ordinary share, Cash receipts, Return on tangible equity (ROTE), and Tangible book value attributable to Burford Capital Limited - **Book value per ordinary share** is calculated by dividing total Burford Capital Limited equity by the number of ordinary shares issued and outstanding[75](index=75&type=chunk) - **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[75](index=75&type=chunk) - **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[75](index=75&type=chunk) - **Tangible book value attributable to Burford Capital Limited** is calculated by subtracting intangible assets (such as goodwill) from total Burford Capital Limited equity[96](index=96&type=chunk) [Forward-Looking Statements & Disclaimers](index=28&type=section&id=5.%20Forward-Looking%20Statements%20%26%20Disclaimers) This section includes standard disclaimers for forward-looking statements and clarifies that the announcement is not an offer of securities or private funds [Forward-Looking Statements](index=28&type=section&id=5.1.%20Forward-Looking%20Statements) This section contains a standard disclaimer regarding forward-looking statements, noting that they involve known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from expectations, and Burford undertakes no obligation to update them - 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[17](index=17&type=chunk) - 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... may differ materially from (and be more negative than) those made in, or suggested by, the **forward-looking statements**[17](index=17&type=chunk) - 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[99](index=99&type=chunk) [General Disclaimers](index=28&type=section&id=5.2.%20General%20Disclaimers) This section includes disclaimers stating that the announcement does not constitute an offer to sell or solicit securities, nor an offer of any Burford private fund, and clarifies that the 2023 financial information is unaudited and subject to material variation - 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[16](index=16&type=chunk) - This announcement does not constitute an offer of any Burford private fund... The information provided in this announcement is for informational purposes only. Past performance is not indicative of future results[97](index=97&type=chunk) - 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[79](index=79&type=chunk)

NEW YORK, March 7, 2024 /PRNewswire/ -- Burford Capital Limited ("Burford"), the leading global finance and asset management firm focused on law, today announces that it will release its financial results for the year ended December 31, 2023 ("FY23") and the three months ended December 31, 2023 ("4Q23") on Thursday, March 14, 2024, at 7.00am EDT / 11.00am GMT. 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 c ...

NEW YORK, Feb. 20, 2024 /PRNewswire/ -- Burford Capital, the leading global finance and asset management firm focused on law, today releases new independent research demonstrating that an increasing number of businesses are recognizing litigation portfolios as value sources and are becoming more open to tools that help them reframe the legal department from overhead to capital source. In the nearly 15 years since Burford's inception and in the wake of the last great recession, how businesses view their liti ...

NEW YORK, Jan. 30, 2024 /PRNewswire/ -- Burford Capital Limited ("Burford" or "Burford Capital"), the leading global finance and asset management firm focused on law, today announces the closing on January 30, 2024 of the private offering of $275.0 million aggregate principal amount of additional 9.250% senior notes due 2031 (the "Additional Notes") by its indirect, wholly owned subsidiary, Burford Capital Global Finance LLC (the "Issuer"). The Additional Notes are guaranteed on a senior unsecured basis by ...

NEW YORK, Jan. 18, 2024 /PRNewswire/ -- Burford Capital Limited, the leading global finance and asset management firm focused on law, is pleased to announce the appointment of Pamela Beth Corrie as an independent non-executive director. Ms. Corrie (66) has significant experience at the nexus of finance and law. She is a seasoned Board director with insight garnered from involvement with a number of growth companies operating at varying stages of development. In addition, she brings expertise in providing ov ...

NEW YORK, Jan. 16, 2024 /PRNewswire/ -- Burford Capital Limited ("Burford" or "Burford Capital"), the leading global finance and asset management firm focused on law, today announces the pricing of its private offering of $275.0 million aggregate principal amount of additional 9.250% senior notes due 2031 (the "Additional Notes") by its indirect, wholly owned subsidiary, Burford Capital Global Finance LLC (the "Issuer"), which represents an increase from the previously announced offering size. The Additiona ...

NEW YORK, Jan. 16, 2024 /PRNewswire/ -- Burford Capital Limited ("Burford" or "Burford Capital"), the leading global finance and asset management firm focused on law, today announces the planned private offering of $200.0 million aggregate principal amount of additional 9.250% senior notes due 2031 (the "Additional Notes") by its indirect, wholly owned subsidiary, Burford Capital Global Finance LLC (the "Issuer"), subject to market and other conditions. The Additional Notes will be guaranteed on a senior un ...

Burford Capital Limited (NYSE:BUR) Q3 2023 Earnings Conference Call November 9, 2023 10:00 AM ET Company Participants Christopher Bogart - Chief Executive Officer Jordan Licht - Chief Financial Officer Jonathan Molot - Chief Investment Officer Conference Call Participants Alexander Bowers - Berenberg Portia Patel - Canaccord Matthew Howlett - B. Riley Julian Roberts - Jefferies Operator Thank you all for joining and good morning. I would like to welcome you all to the Burford Capital Q3 2023 Results Call. M ...

Financial Data and Key Metrics Changes - The company reported earnings of $1.07 in the first half of 2023, with a book value per share of $8.87, indicating strong financial performance [9] - Cash receipts for the first half of 2023 reached $247 million, significantly higher than $99 million for the same period last year [43] - Burford-only capital provision assets exceeded $3 billion, marking the highest level in the company's history, with an equity position just shy of $2 billion [11] Business Line Data and Key Metrics Changes - Capital provision income increased considerably in the first half of 2023 compared to the same period in 2022, approaching double the previous year's figures [31][67] - The company achieved record levels of trailing 12-month realizations at $475 million, reflecting a larger portfolio generating more cash realizations [35] - The asset management business saw cash receipts double year-to-date compared to the previous year, reaching $23 million [42] Market Data and Key Metrics Changes - The company noted a significant increase in new business activity, with over $1 billion of new business in both the previous two years and more than $0.5 billion in the first half of 2023 [46] - The portfolio size has grown to $7 billion, indicating a strong market position and potential for future revenue generation [25][72] Company Strategy and Development Direction - The company is optimistic about the potential of AI to improve business efficiency and open new opportunities, having been active in this area for years [7][8] - The management emphasized the importance of maintaining a strong cash basis for operations rather than focusing solely on accounting metrics, indicating a long-term strategic approach [47][73] - The company aims to leverage its expertise in litigation finance to continue expanding its market presence and capitalize on the evolving legal industry [76] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges of litigation, emphasizing that it often takes longer and costs more than expected, but expressed confidence in the company's ability to navigate these challenges [6][19] - The company is positioned well within the competitive landscape, with management noting that competitors have faced headwinds, allowing Burford to maintain its market leadership [90][106] - The management expressed excitement about the future, highlighting the significant growth potential in the legal finance industry [75][111] Other Important Information - The SEC has completed its review of the company with no further comments, indicating a positive regulatory environment [27] - The company redeemed its 2024 issuance right after the quarter-end, maintaining strong leverage levels well below covenant limits [44] Q&A Session Summary Question: What was the outcome of the exercise to check the percentage of shares held by U.S. shareholders? - The percentage of U.S. shareholders is in the high 40s, just under 50%, meaning the company will remain a foreign private issuer for fiscal 2023 [51][78] Question: Are you seeing any changes in competition and pricing? - The competitive dynamic remains stable, with no significant changes noted. The company continues to compete effectively without sacrificing quality or return levels [84][90] Question: What is the impact of the YPF ruling on the company's competitive position? - The YPF ruling has enhanced the company's brand recognition and competitive position, leading to increased interest from corporate clients [111] Question: Can you discuss the collectability leverage from a sovereign nation like Argentina? - The company refrained from discussing specifics on collectability, emphasizing that such details could be detrimental to shareholder interests [116][122]

Financial Restatements and Accounting Adjustments - Revised fair value accounting approach for capital provision assets using a discounted cash flow model incorporating interest rates, litigation duration, and other valuation factors[2] - Restatement of consolidated financial statements for 2021, 2020, and 2019, and condensed consolidated financial statements for the six months ended June 30, 2022, due to material understatement of capital provision assets and income[2] - The company restated its financial statements for the six months ended June 30, 2022 due to a revised fair value accounting approach for capital provision assets[42] - The restatement corrected a material understatement of capital provision assets and income[42] - The revised valuation approach incorporates discounted cash flow models using interest rates and litigation duration[42] - The company revised its fair value accounting approach for capital provision assets in accordance with ASC 820, retroactively applying it to the prior three years of financial statements[133] Capital Provision Assets and Income - Capital provision assets are categorized into "Direct" and "Indirect," with direct assets originating from the company's balance sheet and indirect assets including participations in private funds[15] - Realized gain or loss reflects the total amount generated by a legal finance asset when concluded, calculated as realized proceeds less deployed cost[19] - Capital provision income for the six months ended June 30, 2023, was $511.6 million, compared to $175.745 million in the same period in 2022[30] - Capital provision income for the six months ended June 30, 2023, was $110.3 million, compared to $175.7 million in the same period in 2022[44] - Capital provision income for the three months ended June 30, 2023 was $35,392 thousand, with an additional $4,813 thousand from third-party interests, totaling $35,667 thousand[72] - Capital provision income for the six months ended June 30, 2023, was $351.4 million, with third-party interests reducing this by $95.5 million, resulting in a total consolidated capital provision income of $511.6 million[73] - Capital provision income surged 191% to $511.6 million for the first half of 2023, compared to $175.7 million in the same period of 2022, driven by case resolutions and portfolio growth[170] - Capital provision income increased to $35.7 million for the three months ended June 30, 2023, compared to $35.0 million in the same period in 2022, driven by a 196% increase in realized gains[153] - Capital provision income surged by 191% to $511.6 million, driven by realized gains and fair value adjustments, particularly from the YPF-related assets[171][173] - Capital provision-direct assets generated proceeds of $268,363 thousand for the six months ended June 30, 2023, while capital provision-indirect assets generated $39,644 thousand, totaling $308,007 thousand[67] - Funding for capital provision-direct assets was $331,525 thousand, and for capital provision-indirect assets, it was $112,794 thousand, totaling $444,319 thousand for the six months ended June 30, 2023[67] - Capital provision-direct assets at June 30, 2023, were $4.21 billion, while capital provision-indirect assets were $200.4 million, primarily through the Advantage Fund[76] - Deployments in capital provision assets for the six months ended June 30, 2023, were $444.3 million, with realizations of $285.9 million and income for the period of $507.8 million[78] - Unrealized fair value of capital provision assets at June 30, 2023, was $2.06 billion, compared to $1.67 billion at June 30, 2022[78] - Total capital provision assets reached $4,386,762 thousand, up from $4,182,258 thousand at the beginning of the period[98] - Total capital provision assets increased from $3,117,263 thousand to $3,373,706 thousand, reflecting a growth of $256,443 thousand[100] - Core legal finance (BOF-C) assets grew from $329,360 thousand to $449,195 thousand, an increase of $119,835 thousand[100] - Portfolio with equity risk assets rose from $200,484 thousand to $208,715 thousand, a growth of $8,231 thousand[100] - Capital provision assets increased 18% to $4.4 billion at June 30, 2023, compared to $3.7 billion at December 31, 2022[193] Financial Performance and Results - Total revenues for the six months ended June 30, 2023, were $425.456 million, compared to $170.592 million in the same period in 2022[30] - Net income attributable to Burford Capital Limited shareholders for the six months ended June 30, 2023, was $237.885 million, compared to $6.928 million in the same period in 2022[30] - Total assets as of June 30, 2023, were $5.177 billion, compared to $4.288 billion as of December 31, 2022[32] - Total liabilities as of June 30, 2023, were $2.441 billion, compared to $1.901 billion as of December 31, 2022[33] - Cash and cash equivalents as of June 30, 2023, were $365.336 million, compared to $107.658 million as of December 31, 2022[32] - Net cash provided by financing activities for the six months ended June 30, 2023, was $478.642 million, compared to $318.173 million in the same period in 2022[36] - Debt payable as of June 30, 2023, was $1.658 billion, compared to $1.252 billion as of December 31, 2022[33] - Total shareholders' equity as of June 30, 2023, was $2.736 billion, compared to $2.387 billion as of December 31, 2022[34] - Net cash used in operating activities for the six months ended June 30, 2023, was $219.863 million, compared to $140.777 million in the same period in 2022[36] - Net loss for the three months ended June 30, 2023 was $21.5 million[38] - Total shareholders' equity at the end of the period was $2.74 billion[38] - Net income for the six months ended June 30, 2023 was $237.9 million[39] - Dividends paid during the six months ended June 30, 2023 totaled $13.7 million[39] - Share-based compensation for the six months ended June 30, 2023 was $6.7 million[39] - Net contributions for the six months ended June 30, 2023 were $106.3 million[39] - Total revenues for the six months ended June 30, 2023, were $105.9 million, compared to $170.6 million in the same period in 2022[44] - Net income attributable to Burford Capital Limited shareholders was a loss of $21.5 million, compared to a profit of $6.9 million in the same period in 2022[44] - Total assets as of June 30, 2023, were $3.85 billion, compared to $4.13 billion as of June 30, 2022[44] - Net cash used in operating activities for the six months ended June 30, 2023, was $140.8 million, unchanged from the same period in 2022[45] - Total operating expenses for the six months ended June 30, 2023, were $54.2 million, compared to $56.8 million in the same period in 2022[44] - Comprehensive income for the six months ended June 30, 2023, was $38.8 million, compared to $90.5 million in the same period in 2022[44] - Total liabilities as of June 30, 2023, were $1.81 billion, compared to $1.88 billion as of June 30, 2022[44] - Total shareholders' equity as of June 30, 2023, was $2.03 billion, compared to $2.25 billion as of June 30, 2022[44] - Third-party interests in capital provision assets increased to $1.0 million in the six months ended June 30, 2023, from $218,000 in the same period in 2022[44] - Total revenues for the six months ended June 30, 2023, were $425.5 million, with asset management and other services contributing $25.9 million and marketable securities and bank interest adding $4.6 million[73] - Operating expenses for the six months ended June 30, 2023, were $97.9 million, with finance costs accounting for $41.7 million and foreign currency transaction losses of $11.3 million[73] - Income before income taxes for the six months ended June 30, 2023, was $297.2 million, with a significant contribution from capital provision income and adjustments for third-party interests[73] - Total assets at June 30, 2023, were $5.18 billion, an increase from $4.29 billion at December 31, 2022, driven by growth in capital provision assets[75] - Total revenues for the six months ended June 30, 2023, were $1,903,000[110] - Net loss attributable to Burford Capital Limited shareholders for the three months ended June 30, 2023 was $21.54 million, compared to a net income of $237.89 million for the same period in 2022[112] - Basic and diluted net loss per ordinary share for the three months ended June 30, 2023 was $0.10, compared to a net income per share of $1.09 for the same period in 2022[112] - Total revenues increased by 149% to $425.5 million for the six months ended June 30, 2023, compared to $170.6 million in the same period in 2022[171] - Operating expenses rose by 72% to $97.9 million, largely due to increased compensation expenses tied to the fair value increase of YPF-related assets and higher realized gains[180] - Compensation and benefits increased by 79% to $68.6 million, driven by higher salaries, annual incentive compensation, and share-based compensation[181] - Legacy asset recovery incentive compensation surged by 439% to $12.1 million, reflecting gains from case resolutions and fair value increases in legacy assets[181] - Marketable securities income turned positive at $4.6 million, compared to a loss of $9.0 million in the prior year, due to the reversal of unrealized losses[179] - Insurance income improved to $0.9 million from a loss of $2.3 million, as adverse cost policy payments did not recur in 2023[177] - Case-related expenditures ineligible for inclusion in asset cost increased by 187% to $10.5 million, reflecting higher legal and related expenses tied to capital provision assets[182] - Long-term incentive compensation increased 130% to $15.5 million for the six months ended June 30, 2023, compared to $6.8 million in the same period in 2022[186] - Finance costs increased 14% to $41.7 million for the six months ended June 30, 2023, compared to $36.6 million in the same period in 2022[188] - Foreign currency transactions resulted in a gain of $11.3 million for the six months ended June 30, 2023, compared to a loss of $3.1 million in the same period in 2022[188] - Provision for income taxes decreased 12% to $16.1 million for the six months ended June 30, 2023, compared to $18.4 million in the same period in 2022[189] - Net income attributable to non-controlling interests decreased 10% to $43.2 million for the six months ended June 30, 2023, compared to $47.9 million in the same period in 2022[191] - Cash and cash equivalents increased 239% to $365.3 million at June 30, 2023, compared to $107.7 million at December 31, 2022[191] - Due from settlement of capital provision assets decreased 19% to $94.4 million at June 30, 2023, compared to $116.6 million at December 31, 2022[192] - In the capital provision segment, the company incurred a loss before income taxes of $15.0 million for the three months ended June 30, 2023, compared to a loss of $33.1 million in the same period in 2022[196] - Total revenues for the three months ended June 30, 2023, were $44.6 million, compared to $47.5 million in the same period in 2022[197] - Total revenues for the six months ended June 30, 2023, increased to $425.456 million, up from $170.592 million in the same period in 2022, representing a significant growth of $254.864 million[199] - Income before income taxes in the capital provision segment surged to $239.4 million in H1 2023, compared to $32.4 million in H1 2022, driven by fair value increases in YPF-related assets and higher realized gains[199] - Income before income taxes in the asset management and other services segment decreased to $11.5 million in H1 2023 from $23.5 million in H1 2022, primarily due to lower income from BOF-C and higher segment expenses[199] - The other corporate segment reported income before income taxes of $3.1 million in H1 2023, a significant improvement from a loss of $30.6 million in H1 2022, attributed to higher income from marketable securities and reduced expenses[199] - Total operating expenses for the six months ended June 30, 2023, were $97.931 million, up from $56.827 million in the same period in 2022, reflecting an increase of $41.104 million[199] - Total other expenses decreased to $30.339 million in H1 2023 from $40.535 million in H1 2022, a reduction of $10.196 million, primarily due to lower expenses in the other corporate segment[199] - The reconciliation adjustment for third-party interests in total revenues was $43.542 million in H1 2023, down from $48.937 million in H1 2022, reflecting a decrease of $5.395 million[199] - The asset management and other services segment generated $25.923 million in revenues in H1 2023, a decrease of $8.932 million compared to $34.855 million in H1 2022[199] - The capital provision segment's total revenues increased to $351.407 million in H1 2023, up from $95.777 million in H1 2022, marking a substantial growth of $255.630 million[199] Legal Finance Products and Services - Legal finance products and services comprise core legal finance and alternative strategies, with lower risk legal finance primarily occurring in the Advantage Fund[16] - Post-settlement activity primarily occurs in COLP, BAIF, and BAIF II, focusing on financing legal-related assets after litigation resolution[17] - Strategic Value Fund deploys capital in complex strategies assets, with investors including third-party limited partners and the company's balance sheet[19] - The Burford-only portfolio consisted of 215 assets held directly and 10 additional assets held indirectly as of June 30, 2023, compared to 211 direct and 9 indirect assets as of December 31, 2022[200] - Total undrawn commitments for legal finance and capital provision were $1.98 billion as of June 30, 2023, an increase from $1.72 billion as of December 31, 2022[118] - The Group's maximum exposure to loss from unconsolidated VIEs was $23.63 million as of June 30, 2023, up from $20.52 million as of December 31, 2022[114] - Fundings on investments in joint ventures and associates were $2.6 million and $4.3 million for the three and six months ended June 30, 2023, respectively, compared to $1.1 million and $2.6 million for the same periods in 2022[120] - The Group's maximum credit exposure for financial assets and receivables in other assets was $18.7 million as of June 30, 2023, up from $17.7 million as of December 31, 2022[121] - Court activity has returned to functionality post-Covid-19, with a high level of portfolio activity observed in 2023, though some jurisdictions still face backlogs delaying adjudication[128] - Inflation's impact on revenues is mitigated by high returns from capital provision-direct assets and short weighted average lives, with potential increases in legal case fees and expenses driving higher returns[129] - A realized loss of $11.3 million was recorded due to a corporate restructuring via Chapter 11 of the US Bankruptcy Code, though $57.0 million was successfully retained prior to bankruptcy[132] - Legal finance assets involving claims against entities with Russian parentage decreased to $99.4 million (2% of total fair value) at June 30, 2023, from $127.2 million (3%) at December 31, 2022[133] - The company uses non-GAAP financial measures (Burford-only and Group-wide) to provide a clearer view of its stand-alone business and the totality of its legal finance activities[135] - Assets under management (AUM) include the fair value of capital invested in private funds and individual capital vehicles, plus capital entitled to be called from investors[137] - Concluded and partially concluded legal finance assets are those where litigation risk is no longer present, including assets with resolved litigation and future payment promises[137] - Deployed cost refers to the amount of funding provided for an asset at a given time, with cost allocation methods varying based on asset type[137] - Internal rate of return (IRR) is calculated on concluded legal finance assets, treating the portfolio as a single entity to determine the discount rate that zeroes the net present value of cash flows[137] Valuation and Risk Factors - The weighted average discount rate for capital provision assets is 7.8%, with a range between 6.1%