Core Viewpoint - Burford Capital Limited provides an update regarding proposed tax provisions related to litigation finance in the US Senate's draft budget reconciliation bill, highlighting significant changes in tax rates and potential revenue estimates [1][2]. Tax Provisions Update - The proposed tax rate for litigation finance has been reduced to 31.8% from 40.8%, and the withholding tax rate on gains has been lowered to 15.9% from 50% of the tax rate applied to gross proceeds [2]. - The nonpartisan Joint Committee on Taxation has revised its revenue estimates for the tax provisions over the next decade to $1.4 billion, down from previous estimates of $3.5 billion [2]. Legislative Uncertainty - The Senate is still debating the legislation, with several procedural and political uncertainties surrounding both the litigation finance provisions and the overall bill, making the outcome unpredictable [3]. - Burford Capital is currently unable to assess the potential impact of these provisions on its future tax position if enacted in their current form [3]. Company Overview - Burford Capital is a leading global finance and asset management firm focused on law, involved in litigation finance, risk management, asset recovery, and various legal finance and advisory activities [4]. - The company is publicly traded on both the New York Stock Exchange (NYSE: BUR) and the London Stock Exchange (LSE: BUR), operating through a global network of offices [4].

Core Insights - Burford Capital's research indicates that US companies are missing out on significant value in commercial class action matters by opting to remain in the class rather than pursuing individual claims [1][2]. Group 1: Survey Findings - An independent survey of 301 senior in-house lawyers revealed that 54% of respondents reported potential recoveries exceeding $50 million in the last five years, yet 62% typically chose to stay in the class [2][6]. - The survey highlighted that 71% of in-house lawyers believe opting out could increase their company's recovery by over 25% [9]. Group 2: Barriers to Opting Out - Anticipated litigation costs and uncertainty regarding outcomes are cited as the primary reasons for remaining in the class, with 73% of in-house lawyers identifying litigation costs as a key barrier [3][9]. - Despite 86% of in-house lawyers prioritizing the maximization of recoveries from commercial class actions, 84% would be more inclined to opt out if they were aware of the potential for significantly higher recoveries [9]. Group 3: Legal Finance as a Solution - Legal finance is presented as a solution to eliminate upfront litigation costs, which 73% of in-house lawyers view as a barrier to opting out [3][4]. - Only 39% of in-house lawyers have utilized legal finance for opt-out strategies, indicating a significant untapped opportunity to mitigate costs and maximize recoveries [9]. - Access to monetization financing, which allows businesses to convert expected recoveries into immediate capital, would make 71% of in-house lawyers more likely to opt out [9].

NEW YORK, May 30, 2025 /PRNewswire/ -- Burford Capital Limited, the leading global finance and asset management firm focused on law, today announces the pound sterling conversion rate for its shareholder-approved final dividend for the year ended December 31, 2024 of 6.25 US cents per ordinary share to be paid on June 13, 2025 to shareholders of record as of May 23, 2025.For shareholders electing to receive their dividend in pound sterling, the final dividend is 4.625498 pence per ordinary share, based on t ...

Core Viewpoint - Burford Capital Limited is undergoing a change in its country classification by MSCI, moving from the MSCI United Kingdom Indexes to the MSCI USA Indexes, which is expected to impact passive holdings and trading dynamics [1][2]. Group 1: Company Overview - Burford Capital is a leading global finance and asset management firm focused on law, offering services in litigation finance, risk management, asset recovery, and legal finance advisory [3]. - The company is publicly traded on both the New York Stock Exchange (NYSE: BUR) and the London Stock Exchange (LSE: BUR) [3]. Group 2: MSCI Index Changes - The change in Burford's classification will be implemented at the close on May 30, 2025, and will take effect on June 2, 2025 [2]. - This reclassification is anticipated to lead to a rotation of passive holdings from Burford's London stock line to its New York stock line in the short term [2].

Group 1 - The conference call is focused on Burford Capital's First Quarter 2025 Financial Results [1][4] - Key participants include the CEO, CIO, and CFO, indicating a comprehensive discussion on financial performance [1][4] - A detailed earnings presentation and Form 10-Q have been posted on the Investor Relations website for reference [4] Group 2 - The call follows an Investor Day held last month, suggesting ongoing engagement with investors [3] - Forward-looking statements will be made during the call, highlighting the company's strategic outlook [4][5]

Financial Data and Key Metrics Changes - The company reported a significant increase in revenue year over year, with capital provision income up 5x compared to the first quarter of the previous year [9][10] - Realizations for the quarter reached $163 million, marking a strong cash generation activity [8][29] - Earnings per share improved to $0.14, compared to a loss of $0.14 in the same period last year [25] Business Line Data and Key Metrics Changes - The principal finance segment and asset management segment both contributed positively, with asset management income increasing to $14 million from $7 million quarter over quarter [33] - New definitive commitments totaled $158 million, a significant increase from $55 million in both the first quarters of 2023 and 2024 [29] Market Data and Key Metrics Changes - The company noted that approximately 85% of its trading volume is now occurring in the U.S. market, reflecting a shift in market dynamics [12] - The company is experiencing a favorable environment for capital solutions as businesses are more reluctant to incur high legal fees during periods of market stress [40][41] Company Strategy and Development Direction - The company is focusing on a diversified portfolio across various risk metrics, jurisdictions, and types of counterparties, which is expected to enhance long-term performance [17] - The management emphasized the importance of long-term performance over quarterly results, indicating a strategic focus on sustainable growth [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current operating environment, noting that periods of market turbulence often create opportunities for litigation and arbitration [41][42] - The company is well-positioned with significant liquidity to capitalize on new business opportunities as they arise [8][35] Other Important Information - The company addressed concerns regarding the re-election of directors and the ISS recommendations, urging shareholders to consider their own interests [13][14] - The company is managing a healthy liquidity position with $103 million due from settlements and ample cash to address upcoming debt maturities [35][39] Q&A Session Summary Question: Clarification on IMF agreement related to YPF settlement - Management clarified that while the IMF does not require resolution of debts as a condition for disbursements, there must be good faith efforts to resolve them [49] Question: Insight into new commitments and litigation types - Management indicated that the new commitments included a significant portion related to a new U.S. Claim family, which is expected to enhance the portfolio [50][51] Question: Factors contributing to unrealized gains from YPF assets - Management noted that the increase in unrealized gains was partly due to the growth in the company's interest in the Eaten Park corpus during the liquidation process [54][55] Question: Clarification on the nature of new claim families - Management explained that claim families involve multi-party litigation, which allows for efficiency in handling similar claims [60][61] Question: Understanding the impact of new commitments on portfolio growth - Management acknowledged that high levels of realizations may lead to periods where the overall portfolio does not grow significantly, but emphasized the importance of long-term growth [66][68]

Financial Data and Key Metrics Changes - The company reported a significant increase in revenue year over year, with capital provision income up 5x compared to the first quarter of the previous year, and a total of $163 million in realizations [7][25][27] - Earnings per share improved to $0.14, compared to a loss of $0.14 in the same period last year, driven by realized and unrealized gains [21][24] Business Line Data and Key Metrics Changes - The principal finance segment and asset management segment both contributed to the overall performance, with asset management income rising to $14 million from $7 million quarter over quarter [31][22] - New definitive commitments reached $158 million, a significant increase from $55 million in both the first quarters of 2023 and 2024 [27][28] Market Data and Key Metrics Changes - The company noted a healthy deployment of $126 million, with a strong focus on both existing cases and new matters [26][27] - The average discount rate used to present value the portfolio improved by approximately 20 basis points, contributing positively to the financial results [25] Company Strategy and Development Direction - The company emphasized its long-term focus on cash generation and portfolio performance rather than quarterly results, indicating a strategy that balances high-risk and lower-risk investments [8][15] - The management highlighted the importance of adapting to market conditions, stating that periods of economic stress can create opportunities for litigation financing [38][39] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, noting that the current economic environment could lead to increased demand for the company's services as businesses seek capital solutions [38][39] - The company is positioned well with a significant amount of liquidity, allowing for continued investment in new business opportunities [7][32] Other Important Information - The company addressed shareholder concerns regarding the reelection of directors and compensation structures, urging shareholders to consider their recommendations carefully [11][12] - The management discussed ongoing litigation related to YPF and the implications of the IMF agreement, indicating a proactive approach to resolving outstanding debts [17][18] Q&A Session Summary Question: Is the IMF agreement contingent upon addressing the YPF settlement? - The management clarified that while the IMF does not require resolution of debts as a condition for disbursements, there must be good faith efforts to resolve them [47] Question: Can you provide insight into the types of business added in the quarter? - Management indicated that the new commitments included a significant contribution from the launch of a new U.S. Claim family, which is part of their strategy to diversify their portfolio [48][49] Question: Were there other contributing factors to the uplift in YPF related assets? - The increase in valuation was attributed to the growth in the company's interest in the Eaten Park activity, which has been consolidating into their financials [53][54] Question: Is the increase in commitments offsetting deployments? - Management confirmed that while high levels of realizations may lead to periods where the portfolio does not grow significantly, they remain focused on long-term growth [63][66]

Financial Performance - Consolidated GAAP net income was $37 million for 1Q25[18] - Net income attributable to Burford Capital Limited shareholders was $31 million for 1Q25[18] - Capital provision income was $91 million, up more than 5x compared to 1Q24[23] - Asset management income was $14 million, doubled from 1Q24, driven by crystallization of performance fees and higher income from BOF-C[23] - Cash receipts totaled $819 million over the last four quarters[23] - Cash receipts of $258 million in 1Q25 were the second highest quarter on record[75] Portfolio Activity - New definitive commitments of $158 million nearly tripled compared to $55 million in both 1Q24 and 1Q23[23] - Deployments of $130 million nearly doubled compared to both 1Q24 and 1Q23[23] - Realizations of $163 million up more than 150% compared to both 1Q24 and 1Q23[23] - Fair value of YPF-related assets of $15 billion as of March 31, 2025[61]

[Part I. Financial Information](index=8&type=section&id=Part%20I.%20Financial%20information) Overview of Burford Capital Limited's unaudited condensed consolidated financial statements and related disclosures for the first quarter [Item 1. Financial Statements](index=8&type=section&id=Item%201.%20Financial%20statements) This section presents the unaudited condensed consolidated financial statements for Burford Capital Limited and its subsidiaries for the three months ended March 31, 2025 and 2024, including statements of operations, comprehensive income, financial condition, cash flows, and changes in equity. It also includes detailed notes on organization, significant accounting policies, income taxes, segment reporting, capital provision assets, debt, fair value measurements, variable interest entities, shareholders' equity, earnings per share, financial commitments, related party transactions, credit risk, and subsequent events [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) | Metric | Three months ended March 31, 2025 ($ in thousands) | Three months ended March 31, 2024 ($ in thousands) | | :------------------------------------------------- | :-------------------------------------------------- | :-------------------------------------------------- | | Capital provision income/(loss) | $131,516 | $40,761 | | Total revenues | $118,859 | $44,295 | | Total operating expenses | $41,101 | $30,138 | | Operating income/(loss) | $77,758 | $14,157 | | Income/(loss) before income taxes | $44,478 | ($18,902) | | Net income/(loss) attributable to Burford Capital Limited shareholders | $30,929 | ($29,937) | | Basic EPS | $0.14 | ($0.14) | | Diluted EPS | $0.14 | ($0.14) | [Condensed Consolidated Statements of Comprehensive Income/(Loss)](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income/(Loss)) | Metric | Three months ended March 31, 2025 ($ in thousands) | Three months ended March 31, 2024 ($ in thousands) | | :------------------------------------------------- | :-------------------------------------------------- | :-------------------------------------------------- | | Net income/(loss) | $36,910 | ($17,498) | | Foreign currency translation adjustment | ($4,029) | $1,383 | | Comprehensive income/(loss) | $32,881 | ($16,115) | | Comprehensive income/(loss) attributable to Burford Capital Limited shareholders | $26,900 | ($28,554) | [Condensed Consolidated Statements of Financial Condition](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Condition) | Metric | March 31, 2025 ($ in thousands) | December 31, 2024 ($ in thousands) | | :------------------------------------------------- | :-------------------------------- | :--------------------------------- | | Cash and cash equivalents | $486,639 | $469,930 | | Capital provision assets | $5,305,021 | $5,243,917 | | Total assets | $6,180,805 | $6,175,025 | | Debt payable | $1,764,726 | $1,763,612 | | Total liabilities | $3,020,224 | $2,918,190 | | Total Burford Capital Limited equity | $2,434,375 | $2,419,432 | | Total shareholders' equity | $3,160,581 | $3,256,835 | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) | Metric | Three months ended March 31, 2025 ($ in thousands) | Three months ended March 31, 2024 ($ in thousands) | | :------------------------------------------------- | :-------------------------------------------------- | :-------------------------------------------------- | | Net cash provided by/(used in) operating activities | $155,170 | $52,963 | | Net cash provided by/(used in) investing activities | ($24) | ($43) | | Net cash provided by/(used in) financing activities | ($139,170) | $209,412 | | Net increase/(decrease) in cash and cash equivalents | $15,976 | $262,332 | | Cash and cash equivalents at end of period | $486,639 | $482,673 | [Condensed Consolidated Statements of Changes in Equity](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity) | Metric | March 31, 2025 ($ in thousands) | December 31, 2024 ($ in thousands) | | :------------------------------------------------- | :-------------------------------- | :--------------------------------- | | Total Burford Capital Limited equity (End of period) | $2,434,375 | $2,419,432 | | Non-controlling interests (End of period) | $726,206 | $837,403 | | Total shareholders' equity (End of period) | $3,160,581 | $3,256,835 | - Net income attributable to Burford Capital Limited shareholders was **$30,929 thousand** for the three months ended March 31, 2025, a significant improvement from a net loss of **$29,937 thousand** in the prior year period[69](index=69&type=chunk) - The company acquired **$15,310 thousand** of ordinary shares held in treasury during the three months ended March 31, 2025[69](index=69&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=13&type=section&id=NOTES%20TO%20THE%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) Detailed explanations of accounting policies, segment information, and specific financial statement line items [1. Organization](index=13&type=section&id=1.%20Organization) - Burford Capital Limited and its consolidated subsidiaries provide legal finance products and services and are engaged in the asset management business[71](index=71&type=chunk) - The Company's ordinary shares trade on AIM (London Stock Exchange) since October 2009 and on the New York Stock Exchange since October 2020 under the symbol 'BUR'[72](index=72&type=chunk) [2. Summary of Significant Accounting Policies](index=13&type=section&id=2.%20Summary%20of%20significant%20accounting%20policies) - The financial statements are prepared in accordance with US GAAP and reflect normal, recurring adjustments for interim periods[73](index=73&type=chunk) - Key estimates include valuation of capital provision assets (using Level 3 inputs), deferred tax balances, and goodwill[74](index=74&type=chunk) - The Group consolidates certain variable interest entities (VIEs) and entities with majority voting interest, including BOF-C, Advantage Fund, Colorado, and EP Funds[75](index=75&type=chunk)[80](index=80&type=chunk) - Capital provision assets are fair valued using an income approach, estimating risk-adjusted future cash flows with a discount rate and risk-adjustment factor (Level 3 inputs)[100](index=100&type=chunk) - The Group adopted ASU 2023-09, Income Taxes (Topic 740), on January 1, 2025, effective prospectively, requiring additional annual income tax disclosures[106](index=106&type=chunk) [3. Income Taxes](index=17&type=section&id=3.%20Income%20taxes) - The Company was granted a corporate income tax exemption in Guernsey for the year ending December 31, 2025, requiring annual reapplication[107](index=107&type=chunk) - Operating subsidiaries in Australia, Ireland, Singapore, the UK, and the US are subject to local taxation[108](index=108&type=chunk) | Metric | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :-------------------- | :-------------------------------- | :-------------------------------- | | Effective tax rate | 17% | 7% | - The variability in the effective tax rate is due to differing income/losses across jurisdictions and changes in the valuation allowance against deferred tax assets[109](index=109&type=chunk) | Deferred Tax Balances ($ in thousands) | March 31, 2025 | December 31, 2024 | | :------------------------------------- | :------------- | :---------------- | | Gross deferred tax assets | $78,097 | $74,201 | | Gross deferred tax liabilities | ($78,629) | ($71,932) | | Valuation allowance | ($38,511) | ($34,826) | | Net deferred tax liabilities | ($39,043) | ($32,557) | [4. Segment Reporting](index=18&type=section&id=4.%20Segment%20reporting) - The Group has two reportable segments: Principal Finance and Asset Management and Other Services[121](index=121&type=chunk) - The Chief Executive Officer and Chief Financial Officer collectively serve as the chief operating decision maker (CODM) and assess segment performance based on segment income/(loss) before income taxes[116](index=116&type=chunk)[117](index=117&type=chunk) - The Principal Finance segment allocates capital from Burford's balance sheet to legal finance assets. The Asset Management and Other Services segment manages legal finance assets for third-party investors and provides other legal industry services[121](index=121&type=chunk) - Effective December 31, 2024, the Capital Provision segment was renamed Principal Finance, and revenue, expenses, and assets from 'other corporate' were reallocated to the two reportable segments[123](index=123&type=chunk) | Segment Income/(Loss) Before Income Taxes ($ in thousands) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--------------------------------------------------------- | :-------------------------------- | :-------------------------------- | | Principal Finance | $31,906 | ($33,295) | | Asset Management and Other Services | $6,591 | $1,954 | | Total segments (Burford-only) | $38,497 | ($31,341) | | Reconciling items | $5,981 | $12,439 | | Total consolidated | $44,478 | ($18,902) | [5. Capital Provision Assets](index=21&type=section&id=5.%20Capital%20provision%20assets) - Capital provision assets increased to **$5,305,021 thousand** as of March 31, 2025, from **$5,243,917 thousand** at the beginning of the period[136](index=136&type=chunk) | Capital Provision Assets ($ in thousands) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :---------------------------------------- | :-------------------------------- | :-------------------------------- | | Deployments | $216,476 | $125,403 | | Realizations | ($288,848) | ($112,971) | | Income/(loss) for the period | $125,568 | $44,161 | | Foreign exchange gains/(losses) | $7,908 | ($5,174) | | End of period | $5,305,021 | $5,096,807 | | Deployed cost, end of period | $2,268,825 | $2,338,056 | | Unrealized fair value, end of period | $3,036,196 | $2,758,751 | | Capital Provision Income ($ in thousands) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :---------------------------------------- | :-------------------------------- | :-------------------------------- | | Net realized gains/(losses) | $67,619 | $57,862 | | Fair value adjustment (net) | $57,949 | ($13,701) | | Foreign exchange gains/(losses) | $5,410 | ($4,202) | | Total capital provision income | $131,516 | $40,761 | [6. Due from Settlement of Capital Provision Assets](index=22&type=section&id=6.%20Due%20from%20settlement%20of%20capital%20provision%20assets) - Amounts due from settlement of capital provision assets decreased to **$102,648 thousand** as of March 31, 2025, from **$183,858 thousand** at the beginning of the period[142](index=142&type=chunk) - The decrease is primarily due to proceeds received from capital provision assets totaling **$371,054 thousand** during the period[142](index=142&type=chunk) - The majority of settlement balances are expected to be received within 12 months after conclusion of the capital provision assets[140](index=140&type=chunk) [7. Asset Management Income](index=23&type=section&id=7.%20Asset%20management%20income) | Asset Management Income ($ in thousands) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | | Management fee income | $1,538 | $1,863 | | Performance fee income | — | — | | Total asset management income | $1,538 | $1,863 | - Asset management income remained relatively flat, with no performance fee income recognized in either period[145](index=145&type=chunk) [8. Long-Term Incentive Compensation Payable](index=23&type=section&id=8.%20Long-term%20incentive%20compensation%20payable) - Long-term incentive compensation payable decreased to **$197,293 thousand** as of March 31, 2025, from **$217,552 thousand** at the beginning of the period[147](index=147&type=chunk) - Cash paid for long-term incentive compensation was **$27,701 thousand** for the three months ended March 31, 2025, significantly higher than **$4,482 thousand** in the prior year period[147](index=147&type=chunk) [9. Other Liabilities](index=23&type=section&id=9.%20Other%20liabilities) | Other Liabilities ($ in thousands) | March 31, 2025 | December 31, 2024 | | :--------------------------------- | :------------- | :---------------- | | General expenses payable | $53,463 | $66,966 | | Tax payable | $23,586 | $21,144 | | Contingent fees | $69,967 | — | | Total other liabilities | $192,660 | $141,973 | - Total other liabilities increased by **$50,687 thousand**, primarily due to the recognition of **$69,967 thousand** in contingent fees as of March 31, 2025[149](index=149&type=chunk) [10. Debt](index=23&type=section&id=10.%20Debt) | Debt Securities ($ in thousands) | March 31, 2025 (Carrying Value) | December 31, 2024 (Carrying Value) | | :------------------------------- | :------------------------------ | :--------------------------------- | | 6.125% Bonds due August 12, 2025 | $122,700 | $129,275 | | 5.000% Bonds due December 1, 2026 | $225,372 | $218,640 | | 6.250% Senior Notes due April 15, 2028 | $396,224 | $395,913 | | 6.875% Senior Notes due April 15, 2030 | $353,294 | $352,961 | | 9.250% Senior Notes due July 1, 2031 | $667,136 | $666,823 | | Total debt | $1,764,726 | $1,763,612 | - Total debt payable remained relatively stable at **$1,764,726 thousand** as of March 31, 2025[152](index=152&type=chunk) - During Q1 2025, Burford Capital Finance LLC purchased and cancelled approximately **$6.6 million** of 2025 Bonds, resulting in a **$0.03 million** gain on early extinguishment of debt[162](index=162&type=chunk) | Finance Costs ($ in thousands) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :----------------------------- | :-------------------------------- | :-------------------------------- | | Debt interest expense | $32,772 | $31,440 | | Debt issuance costs | $1,108 | $1,127 | | Total finance costs | $33,880 | $32,567 | [11. Fair Value of Assets and Liabilities](index=26&type=section&id=11.%20Fair%20value%20of%20assets%20and%20liabilities) - The Group's financial instruments are classified into Level 1, Level 2, and Level 3 based on market price observability, with capital provision assets primarily in Level 3 due to unobservable inputs[90](index=90&type=chunk)[95](index=95&type=chunk) | Level 3 Assets ($ in thousands) | March 31, 2025 | December 31, 2024 | | :------------------------------ | :------------- | :---------------- | | Total capital provision assets | $5,292,499 | $5,226,625 | | Due from settlement | $102,648 | $183,858 | | Total Level 3 assets | $5,395,147 | $5,410,483 | - Key unobservable inputs for Level 3 valuations include discount rate (weighted average **6.7%** at March 31, 2025), duration (weighted average **2.9 years**), and adjusted risk premium (weighted average **30.9%**)[178](index=178&type=chunk) - A 10% higher or lower valuation of Level 3 assets and liabilities would impact consolidated income and net assets by approximately **$461.5 million** as of March 31, 2025[184](index=184&type=chunk) | Interest Rate Sensitivity (Consolidated, $ in thousands) | March 31, 2025 | December 31, 2024 | | :------------------------------------------------------- | :------------- | :---------------- | | +100 bps interest rates | ($160,020) | ($153,241) | | +50 bps interest rates | ($81,092) | ($77,644) | | -50 bps interest rates | $82,043 | $78,514 | | -100 bps interest rates | $166,354 | $159,169 | | Duration Sensitivity (Consolidated, $ in thousands) | March 31, 2025 | December 31, 2024 | | :-------------------------------------------------- | :------------- | :---------------- | | +12 months duration | ($390,776) | ($396,845) | | +6 months duration | ($196,405) | ($200,908) | | -6 months duration | $202,711 | $196,721 | | -12 months duration | $417,624 | $405,926 | [12. Variable Interest Entities](index=33&type=section&id=12.%20Variable%20interest%20entities) - The Group consolidates certain VIEs, including private funds (BOF-C, Advantage Fund), EP Funds, and investment vehicles (Colorado)[192](index=192&type=chunk) | Consolidated VIEs ($ in thousands) | March 31, 2025 | December 31, 2024 | | :--------------------------------- | :------------- | :---------------- | | Total assets | $2,139,277 | $1,833,592 | | Total liabilities | $370,974 | $8,711 | | Total revenues (Q1) | $36,628 | $22,276 | - The Group's maximum exposure to loss from unconsolidated VIEs was **$35,394 thousand** as of March 31, 2025, including on-balance sheet exposure and undrawn commitments[197](index=197&type=chunk) [13. Shareholders' Equity](index=34&type=section&id=13.%20Shareholders'%20equity) - Shareholders approved a resolution on May 15, 2024, to purchase up to **21,864,608** ordinary shares on the open market, with **20,745,323** shares remaining authorized as of March 31, 2025[198](index=198&type=chunk) - The Board declared a final dividend of **6.25¢** per ordinary share on February 28, 2025, subject to shareholder approval, to be paid on June 13, 2025[199](index=199&type=chunk) [14. Earnings Per Ordinary Share](index=35&type=section&id=14.%20Earnings%20per%20ordinary%20share) | EPS ($) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :-------- | :-------------------------------- | :-------------------------------- | | Basic | $0.14 | ($0.14) | | Diluted | $0.14 | ($0.14) | | Weighted Average Shares Outstanding | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :---------------------------------- | :-------------------------------- | :-------------------------------- | | Basic | 219,299,857 | 218,933,963 | | Diluted | 223,102,344 | 218,933,963 | [15. Financial Commitments and Contingent Liabilities](index=35&type=section&id=15.%20Financial%20commitments%20and%20contingent%20liabilities) - The Group enters into financing agreements with definitive commitments (contractually obligated capital) and discretionary commitments (broad discretion over capital advancement)[205](index=205&type=chunk) | Undrawn Commitments ($ in thousands) | March 31, 2025 | December 31, 2024 | | :----------------------------------- | :------------- | :---------------- | | Definitive | $985,953 | $962,808 | | Discretionary | $879,362 | $1,032,433 | | Legal risk (definitive) | $42,969 | $41,318 | | Total | $1,908,284 | $2,036,559 | - The Group does not consider there to be any material contingent liability from legal proceedings requiring disclosure as of the date of the 10-Q[210](index=210&type=chunk) [16. Related Party Transactions](index=36&type=section&id=16.%20Related%20party%20transactions) | Joint Ventures and Equity Method Investments ($ in thousands) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :---------------------------------------------------------- | :-------------------------------- | :-------------------------------- | | Fundings | $674 | $763 | | Proceeds | $816 | $2,160 | [17. Credit Risk from Financial Instruments](index=36&type=section&id=17.%20Credit%20risk%20from%20financial%20instruments) - The Group is exposed to credit risk in various asset structures, with recovery often contingent on successful capital provision assets[213](index=213&type=chunk) - Credit risk for cash and cash equivalents is mitigated by placing funds with reputable banks, and marketable securities consist of investment-grade fixed income assets[213](index=213&type=chunk) - Maximum credit exposure for financial assets and receivables in other assets was **$20.2 million** as of March 31, 2025, with no material expected credit loss identified[215](index=215&type=chunk)[217](index=217&type=chunk) [18. Subsequent Events](index=37&type=section&id=18.%20Subsequent%20events) - There have been no events since March 31, 2025, requiring recognition or disclosure in the unaudited condensed consolidated financial statements[218](index=218&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%202.%20Management's%20discussion%20and%20analysis%20of%20financial%20condition%20and%20results%20of%20operations) This section provides management's perspective on Burford's operational and financial performance for the three months ended March 31, 2025, compared to the same period in 2024. It covers company overview, economic conditions, detailed analysis of financial results, segment performance (Principal Finance and Asset Management), liquidity, capital resources, critical accounting estimates, and various financial reconciliations [Company Overview](index=38&type=section&id=Company%20overview) - Burford is the world's largest dedicated provider of capital for litigation and legal assets, focusing on large, complex disputes[220](index=220&type=chunk)[221](index=221&type=chunk) [Economic and Market Conditions](index=38&type=section&id=Economic%20and%20market%20conditions) - Portfolio returns are generally uncorrelated to market conditions, but cost of debt and discount rates for asset valuation are impacted by economic factors[222](index=222&type=chunk) - Increased corporate insolvencies or higher interest rates can lead to more financeable litigation claims[223](index=223&type=chunk) - Global trade disruption from tariffs is not expected to significantly impact the legal finance portfolio, but tighter financial conditions could increase corporate disputes with a lag[224](index=224&type=chunk) [Covid-19](index=38&type=section&id=Covid-19) - Court systems have largely returned to functionality, working through backlogs caused by the Covid-19 pandemic, leading to continuing portfolio activity[226](index=226&type=chunk) - Delays in adjudication due to court backlogs are considered deferrals of income rather than permanent diminution, as many assets have time-based terms that increase absolute returns over time[226](index=226&type=chunk)[227](index=227&type=chunk) [Inflation](index=39&type=section&id=Inflation) - Inflation's effect on revenues is mitigated by high returns and short asset lives; increased legal fees and expenses can also boost commitment sizes and damages sought, positively impacting returns[228](index=228&type=chunk) - Higher inflation could lead to increased court awards if pre- and post-judgment interest rates are tied to market rates[228](index=228&type=chunk) - Employee costs are the primary inflationary impact on expenses, though a significant portion is performance-based. Principal Finance interest expenses are fixed coupon and non-adjustable[228](index=228&type=chunk) [Party Solvency](index=39&type=section&id=Party%20solvency) - Litigation outcomes differ from conventional credit; judgment creditors have immediate rights to seize assets, offering substantial leverage even against financially distressed debtors[229](index=229&type=chunk) - Claimant insolvency may delay litigation but claims are valuable contingent assets, and Burford is often a secured creditor[230](index=230&type=chunk) - Defendant insolvency poses recovery risk dependent on financial condition and asset availability for unsecured creditors[230](index=230&type=chunk) [Other Items](index=39&type=section&id=Other%20items) - No material developments or changes regarding international sanctions on Russian businesses/individuals or the conflict in Israel and Gaza since the 2024 Form 10-K[231](index=231&type=chunk) [Basis of Presentation of Financial Information](index=39&type=section&id=Basis%20of%20presentation%20of%20financial%20information) - Financial statements are presented in US dollars and prepared in accordance with US GAAP, which requires consolidation of certain limited partner interests and partially owned subsidiaries[232](index=232&type=chunk)[233](index=233&type=chunk) - The company also provides 'Burford-only' non-GAAP financial measures, excluding third-party interests, to reflect its stand-alone business performance, consistent with management's internal assessment[234](index=234&type=chunk)[235](index=235&type=chunk) [KPIs and Non-GAAP Financial Measures](index=40&type=section&id=KPIs%20and%20non-GAAP%20financial%20measures%20relating%20to%20our%20operating%20and%20financial%20performance) - Key Performance Indicators (KPIs) include Assets Under Management (AUM), Concluded and Partially Concluded Assets, Deployed Cost, Commitment, Internal Rate of Return (IRR), Return on Invested Capital (ROIC), Weighted Average Life (WAL), and Portfolio[238](index=238&type=chunk)[240](index=240&type=chunk)[241](index=241&type=chunk)[242](index=242&type=chunk)[243](index=243&type=chunk)[244](index=244&type=chunk)[247](index=247&type=chunk) - Non-GAAP financial measures include Cash Receipts and Tangible Book Value attributable to Burford Capital Limited (and per ordinary share), which supplement GAAP measures for understanding performance and financial condition[248](index=248&type=chunk)[249](index=249&type=chunk)[250](index=250&type=chunk) [Results of Operations and Financial Condition](index=42&type=section&id=Results%20of%20operations%20and%20financial%20condition) Analysis of the company's financial performance and position, including revenue, expenses, and balance sheet changes [Consolidated Statements of Operations (Q1 2025 vs Q1 2024)](index=42&type=section&id=Unaudited%20condensed%20consolidated%20statements%20of%20operations%20for%20the%20three%20months%20ended%20March%2031,%202025,%20as%20compared%20to%20the%20three%20months%20ended%20March%2031,%202024) Comparative analysis of consolidated operational results for the first quarter of 2025 versus 2024 [Overview](index=42&type=section&id=Overview) | Metric ($ in thousands) | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :---------------------- | :----------- | :----------- | :----------- | :--------- | | Total revenues | $118,859 | $44,295 | $74,564 | 168% | | Total operating expenses | $41,101 | $30,138 | $10,963 | 36% | | Operating income/(loss) | $77,758 | $14,157 | $63,601 | 449% | | Income/(loss) before income taxes | $44,478 | ($18,902) | $63,380 | NM | | Net income/(loss) attributable to Burford Capital Limited shareholders | $30,929 | ($29,937) | $60,866 | NM | - Total revenues increased **168%** primarily due to higher capital provision income from fair value adjustments and net realized gains[254](index=254&type=chunk) - Net income attributable to shareholders was **$30.9 million** in Q1 2025, a significant turnaround from a **$29.9 million** net loss in Q1 2024[254](index=254&type=chunk) [Revenues](index=43&type=section&id=Revenues) | Revenue Component ($ in thousands) | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :--------------------------------- | :----------- | :----------- | :----------- | :--------- | | Capital provision income/(loss) | $131,516 | $40,761 | $90,755 | 223% | | Third-party interests | ($20,796) | ($5,224) | ($15,572) | 298% | | Asset management income/(loss) | $1,538 | $1,863 | ($325) | (17)% | | Marketable securities income | $6,787 | $6,611 | $176 | 3% | | Total revenues | $118,859 | $44,295 | $74,564 | 168% | - Net realized gains were **$67.6 million** in Q1 2025 (up **17%** YoY), driven by **$288.8 million** in realizations (up from **$113.0 million**)[258](index=258&type=chunk)[259](index=259&type=chunk) - Fair value adjustments resulted in a **$57.9 million** unrealized gain in Q1 2025, a significant improvement from a **$13.7 million** unrealized loss in Q1 2024, primarily due to the passage of time and a decrease in discount rates[260](index=260&type=chunk)[261](index=261&type=chunk) - Third-party interests in capital provision assets reduced income by **$20.8 million**, mainly due to increased fair value of YPF-related assets[262](index=262&type=chunk) [Operating Expenses](index=44&type=section&id=Operating%20expenses) | Operating Expense Component ($ in thousands) | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :------------------------------------------- | :----------- | :----------- | :----------- | :--------- | | Total compensation and benefits | $26,314 | $22,001 | $4,313 | 20% | | General, administrative and other | $10,210 | $7,450 | $2,760 | 37% | | Case-related expenditures ineligible | $4,577 | $687 | $3,890 | 566% | | Total operating expenses | $41,101 | $30,138 | $10,963 | 36% | - Total operating expenses increased **36%**, driven by higher fair value-driven compensation accruals and increased case-related expenditures ineligible for asset cost, particularly related to the restructuring of the EP Funds[268](index=268&type=chunk)[269](index=269&type=chunk)[270](index=270&type=chunk)[271](index=271&type=chunk) [Other Expenses](index=45&type=section&id=Other%20expenses) | Other Expense Component ($ in thousands) | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :--------------------------------------- | :----------- | :----------- | :----------- | :--------- | | Finance costs | $33,880 | $32,567 | $1,313 | 4% | | Foreign currency transactions | ($600) | $492 | ($1,092) | NM | | Total other expenses | $33,280 | $33,059 | $221 | 1% | - Finance costs increased **4%** due to less interest expense in Q1 2024 related to the Additional 2031 Notes issuance[274](index=274&type=chunk) - Foreign currency transactions shifted from a **$0.5 million** loss in Q1 2024 to a **$0.6 million** gain in Q1 2025, driven by the strengthening of the sterling pound against the US dollar[275](index=275&type=chunk) [Provision for/(Benefit from) Income Taxes](index=45&type=section&id=Provision%20for/(benefit%20from)%20income%20taxes) | Income Taxes ($ in thousands) | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :---------------------------- | :----------- | :----------- | :----------- | :--------- | | Provision for/(benefit from) | $7,568 | ($1,404) | $8,972 | NM | - The shift from a tax benefit to a tax provision was primarily due to higher net income in taxable jurisdictions in 2025[277](index=277&type=chunk) [Net Income/(Loss) Attributable to Non-Controlling Interests](index=45&type=section&id=Net%20income/(loss)%20attributable%20to%20non-controlling%20interests) | Non-Controlling Interests ($ in thousands) | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :----------------------------------------- | :----------- | :----------- | :----------- | :--------- | | Net income/(loss) attributable | $5,981 | $12,439 | ($6,458) | (52)% | - Net income attributable to non-controlling interests decreased **52%**, mainly reflecting a decrease in capital provision income for BOF-C[280](index=280&type=chunk) [Consolidated Statements of Financial Condition (Q1 2025 vs FY 2024)](index=46&type=section&id=Unaudited%20condensed%20consolidated%20statements%20of%20financial%20condition%20as%20of%20March%2031,%202025,%20as%20compared%20to%20December%2031,%202024) Comparative analysis of consolidated financial position as of March 31, 2025, versus December 31, 2024 [Cash and Cash Equivalents and Marketable Securities](index=46&type=section&id=Cash%20and%20cash%20equivalents%20and%20marketable%20securities) | Metric ($ in thousands) | March 31, 2025 | December 31, 2024 | Change ($) | Change (%) | | :---------------------- | :------------- | :---------------- | :--------- | :--------- | | Cash and cash equivalents | $486,639 | $469,930 | $16,709 | 4% | | Marketable securities | $83,544 | $79,020 | $4,524 | 6% | - The net increase in cash and marketable securities reflects proceeds from capital provision assets, partially offset by funding of assets and third-party net distributions[283](index=283&type=chunk) [Other Assets](index=46&type=section&id=Other%20assets) | Metric ($ in thousands) | March 31, 2025 | December 31, 2024 | Change ($) | Change (%) | | :---------------------- | :------------- | :---------------- | :--------- | :--------- | | Other assets | $65,774 | $61,006 | $4,768 | 8% | - Other assets increased **8%** primarily due to higher receivables[284](index=284&type=chunk) [Due from Settlement of Capital Provision Assets](index=46&type=section&id=Due%20from%20settlement%20of%20capital%20provision%20assets) | Metric ($ in thousands) | March 31, 2025 | December 31, 2024 | Change ($) | Change (%) | | :---------------------- | :------------- | :---------------- | :--------- | :--------- | | Due from settlement | $102,648 | $183,858 | ($81,210) | (44)% | - Due from settlement decreased **44%** due to cash collections, with **62%** of the December 31, 2024 balance collected in Q1 2025[285](index=285&type=chunk) [Capital Provision Assets](index=46&type=section&id=Capital%20provision%20assets) | Metric ($ in thousands) | March 31, 2025 | December 31, 2024 | Change ($) | Change (%) | | :---------------------- | :------------- | :---------------- | :--------- | :--------- | | Capital provision assets | $5,305,021 | $5,243,917 | $61,104 | 1% | - Capital provision assets increased **1%**, reflecting continued deployments and fair value gains, partially offset by realizations[286](index=286&type=chunk) [Fair Value of Capital Provision Assets](index=46&type=section&id=Fair%20value%20of%20capital%20provision%20assets) Detailed discussion of the valuation methodologies and fair value of the company's capital provision assets [Valuation Policy](index=47&type=section&id=Valuation%20policy) - The valuation policy for capital provision assets is described in Note 2 of the financial statements[288](index=288&type=chunk) [Fair Value of Capital Provision Assets](index=47&type=section&id=Fair%20value%20of%20capital%20provision%20assets) | Capital Provision Assets ($ in thousands) | March 31, 2025 | December 31, 2024 | | :---------------------------------------- | :------------- | :---------------- | | Consolidated Fair Value | $5,305,021 | $5,243,917 | | Consolidated Deployed Costs | $2,268,825 | $2,341,377 | | Consolidated Unrealized Gains | $3,036,196 | $2,902,540 | | Burford-only Fair Value | $3,627,403 | $3,571,224 | | Burford-only Deployed Costs | $1,683,969 | $1,672,593 | | Burford-only Unrealized Gains | $1,943,434 | $1,898,631 | - Consolidated capital provision assets fair value increased to **$5.3 billion**, with deployed cost decreasing by **$72.6 million** due to realizations and unrealized gains increasing by **$133.7 million**[290](index=290&type=chunk) - Burford-only capital provision assets fair value increased to **$3.6 billion**, with deployed cost increasing by **$11.4 million** and unrealized gains increasing by **$44.8 million**[291](index=291&type=chunk) [Fair Value of YPF-Related Assets](index=47&type=section&id=Fair%20value%20of%20YPF-related%20assets) - The fair value of YPF-related assets (Petersen and Eton Park claims) is determined using the same methodology as other capital provision assets, calibrated by market evidence from a 2019 secondary sale[292](index=292&type=chunk) - In September 2023, the US District Court issued a final judgment of **$16.1 billion** against the Republic of Argentina in favor of Petersen and Eton Park, with post-judgment interest at **5.42%** per annum[296](index=296&type=chunk) - Further restructuring of the Eton Park liquidation in Q1 2025 led to consolidation of EP Funds, increasing consolidated capital provision assets by **$116.6 million** and Burford's share of proceeds[297](index=297&type=chunk) | YPF-Related Assets ($ in thousands) | March 31, 2025 | December 31, 2024 | | :---------------------------------- | :------------- | :---------------- | | Consolidated Fair Value | $2,400,000 | $2,194,517 | | Consolidated Deployed Costs | $112,461 | $76,405 | | Consolidated Unrealized Gains | $2,243,973 | $2,118,112 | | Burford-only Fair Value | $1,538,082 | $1,465,475 | | Burford-only Deployed Costs | $105,632 | $69,576 | | Burford-only Unrealized Gains | $1,432,450 | $1,395,899 | [Undrawn Commitments](index=48&type=section&id=Undrawn%20commitments) - Undrawn commitments are categorized as definitive (contractually obligated) or discretionary (management discretion)[304](index=304&type=chunk) | Undrawn Commitments ($ in thousands) | March 31, 2025 | December 31, 2024 | Change ($) | Change (%) | | :----------------------------------- | :------------- | :---------------- | :--------- | :--------- | | Definitive | $985,953 | $962,808 | $23,145 | 2% | | Discretionary | $879,362 | $1,032,433 | ($153,071) | (15)% | | Legal risk (definitive) | $42,969 | $41,318 | $1,651 | 4% | | Total | $1,908,284 | $2,036,559 | ($128,275) | (6)% | - Total undrawn commitments decreased **6%**, primarily due to deployments exceeding new commitments and the cancellation of unfunded discretionary commitments related to a single asset[302](index=302&type=chunk) [Segments](index=49&type=section&id=Segments) Analysis of financial performance and condition across the Principal Finance and Asset Management segments [Segment Statements of Operations (Q1 2025 vs Q1 2024)](index=49&type=section&id=Unaudited%20condensed%20statements%20of%20operations%20for%20the%20three%20months%20ended%20March%2031,%202025,%20as%20compared%20to%20the%20three%20months%20ended%20March%2031,%202024) | Segment Income/(Loss) Before Income Taxes ($ in thousands) | Q1 2025 | Q1 2024 | Change ($) | | :--------------------------------------------------------- | :----------- | :----------- | :----------- | | Principal Finance | $31,906 | ($33,295) | $65,201 | | Asset Management and Other Services | $6,591 | $1,954 | $4,637 | | Total segments (Burford-only) | $38,497 | ($31,341) | $69,838 | | Consolidated | $44,478 | ($18,902) | $63,380 | - The increase in income before income taxes for both consolidated and Burford-only bases was primarily driven by higher capital provision income from fair value adjustments and decreased discount rates[310](index=310&type=chunk) - Operating expenses increased due to higher compensation-related accruals and case-related expenditures (consolidated) or general, administrative, and other expenses (Burford-only)[311](index=311&type=chunk)[315](index=315&type=chunk) [Segment Statements of Financial Condition (Q1 2025 vs FY 2024)](index=51&type=section&id=Unaudited%20condensed%20statements%20of%20financial%20condition%20as%20of%20March%2031,%202025,%20as%20compared%20to%20December%2031,%202024) | Segment Total Assets ($ in thousands) | March 31, 2025 | December 31, 2024 | Change ($) | | :------------------------------------ | :------------- | :---------------- | :--------- | | Principal Finance | $4,406,530 | $4,397,954 | $8,576 | | Asset Management and Other Services | $196,560 | $190,377 | $6,183 | | Total segments (Burford-only) | $4,603,089 | $4,588,331 | $14,758 | | Consolidated | $6,180,805 | $6,175,025 | $5,780 | - Total assets increased for both consolidated and Burford-only bases, driven by increases in capital provision assets and cash/marketable securities, partially offset by a decrease in due from settlement of capital provision assets[318](index=318&type=chunk) [Group-Wide Portfolio](index=52&type=section&id=Group-wide%20portfolio) | Group-Wide Portfolio ($ in thousands) | March 31, 2025 | December 31, 2024 | Change ($) | Change (%) | | :------------------------------------ | :------------- | :---------------- | :--------- | :--------- | | Principal Finance segment | $5,156,507 | $5,204,080 | ($47,573) | (1)% | | Asset Management and Other Services segment | $2,027,452 | $2,185,464 | ($158,012) | (7)% | | Total group-wide portfolio | $7,183,959 | $7,389,544 | ($205,585) | (3)% | - The total group-wide portfolio decreased **3%** due to robust realizations and the cancellation of unfunded discretionary commitments[321](index=321&type=chunk) [Group-Wide New Commitments](index=52&type=section&id=Group-wide%20new%20commitments) | New Commitments ($ in thousands) | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :------------------------------- | :----------- | :----------- | :----------- | :--------- | | Principal Finance segment | $102,809 | $82,459 | $20,350 | 25% | | Asset Management segment | $23,888 | $31,844 | ($7,956) | (25)% | | Group-wide new commitments | $126,697 | $114,303 | $12,394 | 11% | - Group-wide new commitments increased modestly by **11%** in Q1 2025[323](index=323&type=chunk) [Principal Finance Segment](index=53&type=section&id=Principal%20Finance%20segment) Detailed financial performance and portfolio analysis for the Principal Finance segment [Principal Finance Segment Operations (Q1 2025 vs Q1 2024)](index=53&type=section&id=Unaudited%20condensed%20statements%20of%20operations%20for%20the%20three%20months%20ended%20March%2031,%202025,%20as%20compared%20to%20the%20three%20months%20ended%20March%2031,%202024) | Principal Finance Segment ($ in thousands) | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :----------------------------------------- | :----------- | :----------- | :----------- | :--------- | | Capital provision income/(loss) | $90,950 | $17,903 | $73,047 | 408% | | Total revenues | $97,650 | $24,421 | $73,229 | 300% | | Total operating expenses | $32,463 | $24,661 | $7,802 | 32% | | Income/(loss) before income taxes | $31,906 | ($33,295) | $65,201 | NM | - Total revenues increased **300%** due to a significant rise in capital provision income from higher fair value adjustments and net realized gains[327](index=327&type=chunk) - Operating expenses increased **32%** due to higher compensation accruals and case-related expenditures, leading to a turnaround from a loss to **$31.9 million** in income before taxes[328](index=328&type=chunk)[329](index=329&type=chunk) [Gains from Capital Provision Asset Portfolio](index=54&type=section&id=Gains%20from%20capital%20provision%20asset%20portfolio) | Principal Finance Capital Provision Income ($ in thousands) | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :-------------------------------------------------------- | :----------- | :----------- | :----------- | :--------- | | Net realized gains/(losses) | $34,584 | $29,894 | $4,690 | 16% | | Fair value adjustment (net) | $50,765 | ($9,088) | $59,853 | NM | | Total capital provision income | $90,950 | $17,903 | $73,047 | 408% | - Net realized gains increased **16%** due to fewer realized losses in 2025[332](index=332&type=chunk) - Unrealized gains from fair value adjustments increased to **$50.8 million**, driven by the passage of time and a decrease in discount rates[333](index=333&type=chunk) [Principal Finance Segment Financial Condition (Q1 2025 vs FY 2024)](index=54&type=section&id=Unaudited%20condensed%20statements%20of%20financial%20condition%20as%20of%20March%2031,%202025,%20as%20compared%20to%20March%2031,%202024) | Principal Finance Segment Assets ($ in thousands) | March 31, 2025 | December 31, 2024 | Change ($) | Change (%) | | :------------------------------------------------ | :------------- | :---------------- | :--------- | :--------- | | Cash and cash equivalents and marketable securities | $538,374 | $508,031 | $30,343 | 6% | | Due from settlement of capital provision assets | $102,648 | $183,651 | ($81,003) | (44)% | | Capital provision assets | $3,627,403 | $3,571,224 | $56,179 | 2% | | Total assets | $4,406,530 | $4,397,954 | $8,576 | 0.2% | - Total assets for the Principal Finance segment increased **0.2%**, driven by increases in capital provision assets and cash/marketable securities, offset by a decrease in due from settlement[335](index=335&type=chunk) [Principal Finance Segment Portfolio Value](index=55&type=section&id=Portfolio%20value%20%E2%80%93%20Principal%20Finance%20segment) | Principal Finance Portfolio ($ in thousands) | March 31, 2025 | December 31, 2024 | Change ($) | Change (%) | | :------------------------------------------- | :------------- | :---------------- | :--------- | :--------- | | Capital provision assets (Fair value) | $3,627,403 | $3,571,224 | $56,179 | 2% | | Undrawn commitments | $1,529,104 | $1,632,856 | ($103,752) | (6)% | | Total portfolio | $5,156,507 | $5,204,080 | ($47,573) | (1)% | - The Principal Finance portfolio remained relatively flat at **$5.2 billion**[337](index=337&type=chunk) | Deployments and Realizations ($ in thousands) | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :-------------------------------------------- | :----------- | :----------- | :----------- | :--------- | | Deployments (Principal Finance) | $125,818 | $66,816 | $59,002 | 88% | | Realizations (Principal Finance) | $162,905 | $73,208 | $89,697 | 123% | | Deployments (Adjusted Burford-only) | $129,911 | $67,515 | $62,396 | 92% | | Realizations (Adjusted Burford-only) | $163,148 | $62,537 | $100,611 | 161% | - Deployments increased by **88%** (Principal Finance) and **92%** (Adjusted Burford-only), primarily from **$75.5 million** in monetizations across three deals[340](index=340&type=chunk) - Realizations increased by **123%** (Principal Finance) and **161%** (Adjusted Burford-only), driven by robust realizations, including **$93.8 million** from a single asset conclusion[342](index=342&type=chunk) [Principal Finance Segment Undrawn Commitments](index=56&type=section&id=Undrawn%20commitments%20%E2%80%93%20Principal%20Finance%20segment) | Principal Finance Undrawn Commitments ($ in thousands) | March 31, 2025 | December 31, 2024 | Change ($) | Change (%) | | :----------------------------------------------------- | :------------- | :---------------- | :--------- | :--------- | | Definitive | $793,714 | $773,673 | $20,041 | 3% | | Discretionary | $692,421 | $817,865 | ($125,444) | (15)% | | Total | $1,529,104 | $1,632,856 | ($103,752) | (6)% | - Total undrawn commitments decreased **6%**, with definitive commitments at **55%** and discretionary at **45%** of the total[344](index=344&type=chunk) [Portfolio Tenor](index=56&type=section&id=Portfolio%20tenor) - The timing of realizations is difficult to forecast, but asset pricing is structured to compensate for longer resolution times[345](index=345&type=chunk) | Weighted Average Life (WAL) (in years) | March 31, 2025 | December 31, 2024 | | :------------------------------------- | :------------- | :---------------- | | WAL weighted by deployed cost | 2.4 | 2.5 | | WAL weighted by realizations | 2.6 | 2.6 | | WAL of active deployed capital | 3.2 | 3.1 | - WALs of concluded assets remained relatively flat, while WAL of active deployed capital slightly increased[348](index=348&type=chunk)[350](index=350&type=chunk) [Returns on Concluded Portfolio](index=57&type=section&id=Returns%20on%20concluded%20portfolio) | Concluded Portfolio Returns (Burford-only) | March 31, 2025 | December 31, 2024 | | :----------------------------------------- | :------------- | :---------------- | | ROIC | 83% | 87% | | IRR | 26% | 26% | | Cumulative realizations ($ in thousands) | $3,480,527 | $3,331,356 | - ROIC declined from **87%** to **83%** due to a fast resolution of a large 2024 vintage matter, which generated **$93.8 million** in realizations and **$18.8 million** in realized gains (**25% ROIC**, **40% IRR**) but lowered the overall cumulative ROIC[352](index=352&type=chunk) - Total capital provision asset deployments were **$133.2 million** in Q1 2025, with **11%** related to vintage year 2020 and earlier[357](index=357&type=chunk) - Total capital provision asset realizations were **$148.9 million** in Q1 2025, with **24%** related to vintage year 2020 and earlier[360](index=360&type=chunk) [Asset Management and Other Services Segment](index=58&type=section&id=Asset%20Management%20and%20Other%20Services%20segment) Detailed financial performance and portfolio analysis for the Asset Management and Other Services segment [Asset Management Segment Operations (Q1 2025 vs Q1 2024)](index=59&type=section&id=Unaudited%20condensed%20statements%20of%20operations%20for%20the%20three%20months%20ended%20March%2031,%202025,%20as%20compared%20to%20the%20three%20months%20ended%20March%2031,%202024) | Asset Management Segment ($ in thousands) | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :---------------------------------------- | :----------- | :----------- | :----------- | :--------- | | Asset management income/(loss) | $13,837 | $6,673 | $7,164 | 107% | | Total revenues | $13,651 | $6,957 | $6,694 | 96% | | Total operating expenses | $7,060 | $5,003 | $2,057 | 41% | | Income/(loss) before income taxes | $6,591 | $1,954 | $4,637 | 237% | - Total revenues increased **96%**, driven by higher asset management income, particularly performance fees from the Advantage Fund[366](index=366&type=chunk) - Income before income taxes increased **237%** due to higher revenues, partially offset by a **41%** increase in operating expenses from compensation and benefits[366](index=366&type=chunk) [Asset Management Segment Financial Condition (Q1 2025 vs FY 2024)](index=59&type=section&id=Unaudited%20condensed%20statements%20of%20financial%20condition%20as%20of%20March%2031,%202025,%20as%20compared%20to%20March%2031,%202024) | Asset Management Segment Assets ($ in thousands) | March 31, 2025 | December 31, 2024 | Change ($) | Change (%) | | :----------------------------------------------- | :------------- | :---------------- | :--------- | :--------- | | Cash and cash equivalents and marketable securities | $9,834 | $12,650 | ($2,816) | (22)% | | Other assets | $160,740 | $151,770 | $8,970 | 6% | | Total assets | $196,560 | $190,377 | $6,183 | 3% | - Total assets increased **3%**, primarily due to higher asset management income increasing related receivables within other assets[368](index=368&type=chunk) [Asset Management Income](index=59&type=section&id=Asset%20management%20income) - Asset management income is categorized into management fees, performance fees, and profit sharing income[369](index=369&type=chunk) | Asset Management Income ($ in thousands) | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :--------------------------------------- | :----------- | :----------- | :----------- | :--------- | | Management fee income | $1,538 | $1,863 | ($325) | (17)% | | Performance fee income | $4,400 | — | $4,400 | NM | | Profit sharing income from private funds | $7,899 | $4,810 | $3,089 | 64% | | Total asset management income | $13,837 | $6,673 | $7,164 | 107% | - Total asset management income increased **107%**, mainly driven by **$4.4 million** in performance fee income from the Advantage Fund and higher profit-sharing income from BOF-C[372](index=372&type=chunk) [Asset Management Segment Portfolio Value](index=60&type=section&id=Portfolio%20value%20%E2%80%93%20Asset%20Management%20and%20Other%20Services%20segment) | Asset Management Portfolio ($ in thousands) | March 31, 2025 | December 31, 2024 | Change ($) | Change (%) | | :------------------------------------------ | :------------- | :---------------- | :--------- | :--------- | | Capital provision assets (Fair value) | $1,272,789 | $1,353,893 | ($81,104) | (6)% | | Undrawn commitments | $471,661 | $491,186 | ($19,525) | (4)% | | Post-settlement (Fair value) | $230,909 | $272,424 | ($41,515) | (15)% | | Total portfolio value | $2,027,452 | $2,185,464 | ($158,012) | (7)% | - Total portfolio value for the Asset Management segment decreased **7%**, largely due to robust realizations in Q1 2025[373](index=373&type=chunk) [Private Funds](index=60&type=section&id=Private%20funds) - As of March 31, 2025, Burford operated eight private funds and three 'sidecar' funds as an SEC-registered investment adviser[374](index=374&type=chunk) | Private Fund Key Statistics ($ in millions) | Investor Commitments Closed | Asset Commitments to Date | Asset Deployments to Date | AUM ($ in millions) | | :------------------------------------------ | :-------------------------- | :------------------------ | :------------------------ | :------------------ | | BCIM Partners II, LP | $260 | $253 | $186 | $128 | | BCIM Partners III, LP | $412 | $447 | $332 | $424 | | Burford Opportunity Fund LP (BOF) | $300 | $398 | $302 | $364 | | BCIM Credit Opportunities, LP (COLP) | $488 | $699 | $695 | $399 | | Burford Alternative Income Fund LP (BAIF) | $327 | $678 | $663 | $253 | | Burford Alternative Income Fund II LP (BAIF II) | $350 | $362 | $310 | $385 | | Burford Advantage Master Fund LP (Advantage Fund) | $360 | $370 | $367 | $326 | | Burford Opportunity Fund C LP (BOF-C) | $766 | $1,281 | $794 | $1,025 | | Total | $3,263 | $4,488 | $3,649 | $3,304 | - Total Assets Under Management (AUM) was **$3.3 billion** as of March 31, 2025, down from **$3.5 billion** as of December 31, 2024[379](index=379&type=chunk) [Liquidity and Capital Resources](index=61&type=section&id=Liquidity%20and%20capital%20resources) Assessment of the company's cash position, debt structure, and ability to meet financial obligations [Overview](index=61&type=section&id=Overview) | Cash & Marketable Securities ($ in thousands) | March 31, 2025 | December 31, 2024 | | :-------------------------------------------- | :------------- | :---------------- | | Consolidated | $570,183 | $548,950 | | Total segments (Burford-only) | $548,208 | $520,681 | - Consolidated cash and marketable securities increased **4%**, while Burford-only increased **5%**, primarily due to proceeds from capital provision assets[381](index=381&type=chunk) - Marketable securities consist mainly of short-duration, investment-grade fixed income assets managed by a third-party[382](index=382&type=chunk) [Debt](index=61&type=section&id=Debt) - The company maintains low leverage and laddered debt maturities, with a weighted average maturity of **4.3 years**, longer than the **2.6-year** weighted average life of concluded assets[384](index=384&type=chunk) - As of March 31, 2025, the consolidated net debt to consolidated tangible assets ratio was **20%**, and the Consolidated Indebtedness to Net Tangible Equity Ratio was **0.76x**, both in compliance with covenants[387](index=387&type=chunk) - Burford Capital Limited and its Restricted Subsidiaries had total assets of **$5,450,178 thousand** and total revenues of **$110,791 thousand** for Q1 2025[389](index=389&type=chunk) [Cash Flows](index=62&type=section&id=Cash%20flows) | Cash Flow Activity ($ in thousands) | Q1 2025 | Q1 2024 | | :---------------------------------- | :----------- | :----------- | | Net cash from operating activities | $155,170 | $52,963 | | Net cash from investing activities | ($24) | ($43) | | Net cash from financing activities | ($139,170) | $209,412 | | Net increase in cash and cash equivalents | $15,976 | $262,332 | - Net cash provided by operating activities significantly increased to **$155.2 million**, driven by higher proceeds from capital provision assets (**$371.1 million**) and increased deployments (**$216.5 million**)[394](index=394&type=chunk) - Net cash used in financing activities was **$139.2 million**, primarily due to the absence of debt issuance in 2025[396](index=396&type=chunk) [Cash Receipts (Non-GAAP Financial Measure)](index=63&type=section&id=Cash%20receipts%20(non-GAAP%20financial%20measure)) | Burford-only Cash Receipts ($ in thousands) | Q1 2025 | Q1 2024 | | :------------------------------------------ | :----------- | :----------- | | Proceeds from capital provision assets | $244,904 | $127,525 | | Proceeds from asset management income | $7,105 | $4,476 | | Proceeds from other items | $5,707 | $5,693 | | Total Cash receipts | $257,716 | $137,694 | - Burford-only cash receipts increased **87%**, reflecting higher cash received from realizations and collections on due from settlement receivables[400](index=400&type=chunk) [Dividends](index=64&type=section&id=Dividends) - A final dividend of **6.25¢** per ordinary share was declared on February 28, 2025, subject to shareholder approval, with no dividend payments made in Q1 2025[402](index=402&type=chunk) - The company anticipates continuing a total annual dividend of **12.50¢** per ordinary share, payable semi-annually, without regular increases[403](index=403&type=chunk) [Off-Balance Sheet Arrangements](index=64&type=section&id=Off-balance%20sheet%20arrangements) - As of December 31, 2024, off-balance sheet arrangements related to legal finance assets with structured entities totaled **$4.8 million**[404](index=404&type=chunk) [Critical Accounting Estimates](index=64&type=section&id=Critical%20accounting%20estimates) Discussion of key accounting judgments and assumptions that significantly impact financial reporting [Fair Value of Capital Provision Assets](index=64&type=section&id=Fair%20value%20of%20capital%20provision%20assets) - Fair value determination for capital provision assets involves significant subjective estimates of forecasted cash flows, discount rates, and litigation risk[407](index=407&type=chunk) - A 10% change in the estimated value of these instruments would impact consolidated income and net assets by approximately **$461.5 million** as of March 31, 2025[408](index=408&type=chunk) | Interest Rate Sensitivity (Consolidated, $ in thousands) | March 31, 2025 | December 31, 2024 | | :------------------------------------------------------- | :------------- | :---------------- | | +100 bps interest rates | ($160,020) | ($153,241) | | -100 bps interest rates | $166,354 | $159,169 | | Duration Sensitivity (Consolidated, $ in thousands) | March 31, 2025 | December 31, 2024 | | :-------------------------------------------------- | :------------- | :---------------- | | +12 months duration | ($390,776) | ($396,845) | | -12 months duration | $417,624 | $405,926 | [Reconciliations](index=66&type=section&id=Reconciliations) Detailed reconciliations of consolidated financial data to Burford-only non-GAAP measures [Reconciliation of Financial Condition (Consolidated vs Burford-only)](index=66&type=section&id=Reconciliations%20of%20unaudited%20condensed%20consolidated%20statements%20of%20financial%20condition%20to%20total%20segments%20(Burford-only)%20unaudited%20condensed%20statements%20of%20financial%20condition) - Reconciliations adjust consolidated financial statements to a 'Burford-only' basis by excluding third-party interests in non-wholly owned entities, providing a view of Burford's stand-alone assets and liabilities[418](index=418&type=chunk) | Assets ($ in thousands) | Consolidated (Mar 31, 2025) | Third-party interests | Total segments (Burford-only) | | :---------------------- | :-------------------------- | :-------------------- | :---------------------------- | | Cash and cash equivalents | $486,639 | ($21,975) | $464,664 | | Capital provision assets | $5,305,021 | ($1,677,618) | $3,627,403 | | Total assets | $6,180,805 | ($1,577,716) | $4,603,089 | | Liabilities ($ in thousands) | Consolidated (Mar 31, 2025) | Third-party interests | Total segments (Burford-only) | | :--------------------------- | :-------------------------- | :-------------------- | :---------------------------- | | Debt payable | $1,764,726 | — | $1,764,726 | | Financial liabilities relating to third-party interests | $780,330 | ($780,330) | — | | Total liabilities | $3,020,224 | ($851,510) | $2,168,714 | [Reconciliation of Capital Provision Assets](index=67&type=section&id=Reconciliations%20of%20capital%20provision%20assets) | Capital Provision Assets ($ in thousands) | Consolidated (Mar 31, 2025) | Third-party interests | Total segments (Burford-only) | | :---------------------------------------- | :-------------------------- | :-------------------- | :---------------------------- | | Beginning of period | $5,243,917 | ($1,672,693) | $3,571,224 | | Deployments | $216,476 | ($90,658) | $125,818 | | Realizations | ($288,848) | $125,943 | ($162,905) | | End of period | $5,305,021 | ($1,677,618) | $3,627,403 | | Deployed cost, end of period | $2,268,825 | ($584,856) | $1,683,969 | | Unrealized fair value, end of period | $3,036,196 | ($1,092,762) | $1,943,434 | [Reconciliation of Capital Provision Income](index=68&type=section&id=Reconciliations%20of%20capital%20provision%20income) | Capital Provision Income ($ in thousands) | Consolidated (Mar 31, 2025) | Third-party interests | Total segments (Burford-only) | | :---------------------------------------- | :-------------------------- | :-------------------- | :---------------------------- | | Net realized gains/(losses) | $67,619 | ($33,035) | $34,584 | | Fair value adjustment (net) | $57,949 | ($7,184) | $50,765 | | Total capital provision income | $131,516 | ($40,566) | $90,950 | [Reconciliation of Due from Settlement of Capital Provision Assets](index=69&type=section&id=Reconciliations%20of%20due%20from%20settlement%20of%20capital%20provision%20assets) | Due from Settlement ($ in thousands) | Consolidated (Mar 31, 2025) | Third-party interests | Total segments (Burford-only) | | :----------------------------------- | :-------------------------- | :-------------------- | :---------------------------- | | Beginning of period | $183,858 | ($207) | $183,651 | | Proceeds from capital provision assets | ($371,054) | $126,150 | ($244,904) | | End of period | $102,648 | — | $102,648 | [Reconciliation of Capital Provision Undrawn Commitments](index=69&type=section&id=Reconciliations%20of%20capital%20provision%20undrawn%20commitments) | Undrawn Commitments ($ in thousands) | Consolidated (Mar 31, 2025) | Third-party interests | Total segments (Burford-only) | | :----------------------------------- | :-------------------------- | :-------------------- | :---------------------------- | | Definitive | $985,953 | ($192,239) | $793,714 | | Discretionary | $879,362 | ($186,941) | $692,421 | | Total | $1,908,284 | ($379,180) | $1,529,104 | [Reconciliation of Asset Management Income](index=69&type=section&id=Reconciliations%20of%20asset%20management%20income) | Asset Management Income ($ in thousands) | Consolidated (Mar 31, 2025) | Third-party interests | Total segments (Burford-only) | | :--------------------------------------- | :-------------------------- | :-------------------- | :---------------------------- | | Management fee income | $1,538 | — | $1,538 | | Performance fee income | — | $4,400 | $4,400 | | Profit sharing income from funds | — | $7,899 | $7,899 | | Total asset management income | $1,538 | $12,299 | $13,837 | [Reconciliation of Deployments](index=70&type=section&id=Deployments%20reconciliations) | Deployments ($ in thousands) | Q1 2025 | Q1 2024 | | :--------------------------- | :----------- | :----------- | | Consolidated deployments | $216,476 | $125,403 | | Total segments (Burford-only) | $125,818 | $66,816 | | Adjusted Burford-only | $129,911 | $67,515 | [Reconciliation of Realizations](index=70&type=section&id=Realizations%20reconciliations) | Realizations ($ in thousands) | Q1 2025 | Q1 2024 | | :---------------------------- | :----------- | :----------- | | Consolidated realizations | $288,848 | $112,971 | | Total segments (Burford-only) | $162,905 | $73,208 | | Adjusted Burford-only | $163,148 | $62,537 | [Reconciliation of Cash Receipts](index=71&type=section&id=Cash%20receipts%20reconciliations) | Cash Receipts ($ in thousands) | Q1 2025 | Q1 2024 | | :----------------------------- | :----------- | :----------- | | Consolidated proceeds from capital provision assets | $371,054 | $247,561 | | Burford-only proceeds from capital provision assets | $244,904 | $127,525 | | Burford-only proceeds from asset management income | $7,105 | $4,476 | | Total Cash receipts | $257,716 | $137,694 | [Reconciliation of Tangible Book Value](index=71&type=section&id=Tangible%20book%20value%20attributable%20to%20Burford%20Capital%20Limited%20and%20tangible%20book%20value%20attributable%20to%20Burford%20Capital%20Limited%20per%20ordinary%20share%20reconciliations) | Tangible Book Value ($ in thousands, except share data) | March 31, 2025 | December 31, 2024 | | :------------------------------------------------------ | :------------- | :---------------- | | Total Burford Capital Limited equity | $2,434,375 | $2,419,432 | | Less: Goodwill | ($133,977) | ($133,948) | | Tangible book value attributable to Burford Capital Limited | $2,300,398 | $2,285,484 | | Basic ordinary shares outstanding | 218,321,904 | 219,421,904 | | Tangible book value per ordinary share | $10.54 | $10.42 | [Debt Leverage Ratio Calculations](index=71&type=section&id=Debt%20leverage%20ratio%20calculations) | Debt Leverage Ratios | March 31, 2025 | December 31, 2024 | | :------------------- | :------------- | :---------------- | | Consolidated net debt to consolidated tangible assets ratio | 20% | 20% | | Consolidated Indebtedness to Net Tangible Equity Ratio | 0.76x | 0.77x

This presentation is for the use of Burford's public shareholders and is not an offering of any Burford private fund. Notice & disclaimer This presentation (this "Presentation") provides certain information to facilitate review and understanding of the business, financial condition and results of operations of Burford Capital Limited (together with its subsidiaries, the "Company", "Burford", " we", " our" or " us") as of and for the three months ended March 31, 2025 and does not purport to be a complete. de ...