For more information, please visit www.burfordcapital.com. NEW YORK, May 6, 2025 /PRNewswire/ -- Burford Capital Limited ("Burford"), the leading global finance and asset management firm focused on law, today announces that it will host a call for retail shareholders on Thursday, June 5, 2025 at 10.00am EDT / 3.00pm BST, during which Christopher Bogart, Chief Executive Officer, and Jordan Licht, Chief Financial Officer, will discuss Burford's financial results and other disclosures and answer shareholder qu ...

Core Insights - The latest edition of The Burford Quarterly highlights how general counsels, law firm leaders, and private equity professionals are leveraging financial tools to navigate high-stakes litigation [1][2] - Legal finance is increasingly recognized as a transformative resource for corporations and law firms, providing data, analysis, and expert commentary on industry trends [1][2] Group 1: Legal Finance Trends - Leading attorneys discuss the impact of legal finance on traditional contingency fee models, indicating a shift in how legal services are priced and funded [2] - The edition includes insights from patent lawyers regarding the first year of data from the United Patent Court (UPC), showcasing the evolving landscape of patent litigation [2] - Burford experts present new data on the enforcement of judgments, emphasizing the importance of legal finance in ensuring compliance and recovery [2] Group 2: Strategic Implications - The Burford Quarterly aims to illustrate how legal finance has become a sophisticated strategy for optimizing cash flow, managing legal risk, and unlocking capital across various sectors [3] - The combination of robust data with real-world outcomes in this edition demonstrates the tangible impact of legal finance on complex legal and business decisions [3] - The publication serves as a resource for understanding the synergies between private equity and legal finance, highlighting potential investment opportunities [2][3] Group 3: Company Overview - Burford Capital is a leading global finance and asset management firm focused on law, involved in litigation finance, risk management, and asset recovery [4] - The firm is publicly traded on both the New York Stock Exchange and the London Stock Exchange, indicating its established presence in the financial markets [4] - Burford Capital operates a global network of offices, collaborating with companies and law firms worldwide [4]

Core Insights - The research highlights that many companies are not fully leveraging their patent portfolios, leading to significant missed financial opportunities and ongoing costs that could be mitigated through monetization [2][4] - There is a growing trend among companies to adopt proactive patent monetization strategies in response to economic pressures and rising costs associated with maintaining large patent portfolios [2][4] Patent Monetization Trends - Nearly 70% of in-house lawyers indicate that their organizations are more likely to monetize patents today compared to a decade ago, with 73% reporting an increase in revenue from patent monetization over the last 10 years [2][4] - 79% of in-house lawyers believe that more than a quarter of their patent portfolio is underutilized, resulting in lost revenue and reduced market share [4] Strategies and Solutions - Divestiture is emerging as a fast-growing strategy for monetization, with 71% of in-house lawyers having already divested patents or actively exploring divestiture options [4] - Legal finance is increasingly recognized as a tool to de-risk direct enforcement, with 72% of law firm lawyers citing high litigation costs as a barrier to pursuing patent claims [4] Role of Legal Finance - 59% of law firm lawyers report that clients utilize legal finance for patent monetization, while 51% of in-house lawyers are planning or exploring the use of legal finance to support patent enforcement and monetization [4] - The research underscores the potential for legal finance to transform underutilized IP assets into liquidity, enabling companies to prioritize innovation [3][4] Global Market Dynamics - The United States remains the leading market for patent monetization due to robust enforcement mechanisms, while the Unified Patent Court (UPC) is expected to enhance enforcement in Europe, with 74% of in-house lawyers anticipating increased activity in the region [4]

Investment Strategy - The investment period for the Advantage Fund concluded in December 2024, with the company's balance sheet holding a 17% stake in the fund[95]. - BOF-C's fund commitment was fully utilized by September 2024, and discussions are ongoing to extend the investment period and expand BOF-C's commitment[94]. - The company launched the Advantage Fund in 2022 to allocate capital to legal finance assets with a generally lower risk/return profile than those allocated to its balance sheet[95]. - The company is actively pursuing a strategy to prioritize capital allocation from its balance sheet, as it believes this offers more attractive return economics compared to asset management fees[95]. - The company has historically allocated its balance sheet to legal finance assets with a higher overall risk/return profile, supplemented by third-party capital providers[93]. Technological Innovations - The company has made increasing use of technological innovations, including AI, to enhance its origination and underwriting processes[101]. Market Competition - The legal finance industry is highly competitive, with the company being recognized as the most familiar brand among law firm and in-house lawyers[114]. - The company has historically closed a disproportionate amount of new business in the fourth quarter, influenced by client behavior[115]. Regulatory Compliance - The company is subject to various regulatory frameworks and must comply with the SEC rules and NYSE listing requirements as of January 1, 2025[117]. - The company has a rigorous compliance program, including a code of ethics and internal controls, to manage regulatory and compliance matters[128][129]. - The company is subject to various regulations, including the UK Bribery Act and the US Foreign Corrupt Practices Act, as well as data privacy laws like the California Consumer Privacy Act[122]. - The company engages in monitoring regulatory initiatives in the legal finance industry, with no new broad regulations currently indicated in the US[123][124]. - The company maintains a culture of compliance and risk management, with legal professionals overseeing operations to mitigate unacceptable risks[128]. Financial Performance - Total revenues for 2024 were $546,087,000, a decrease of 49.7% compared to $1,086,902,000 in 2023[603]. - Capital provision income for 2024 was $552,066,000, down from $1,341,923,000 in 2023, reflecting a decline of 58.9%[603]. - Net income attributable to Burford Capital Limited shareholders for 2024 was $146,484,000, a decrease of 76.0% from $610,522,000 in 2023[603]. - Operating income for 2024 was $390,602,000, down 52.1% from $815,666,000 in 2023[603]. - Total operating expenses for 2024 were $155,485,000, a reduction of 42.6% compared to $271,236,000 in 2023[603]. - Basic net income per share for 2024 was $0.67, compared to $2.79 in 2023, representing a decline of 76.0%[603]. - Comprehensive income attributable to Burford Capital Limited shareholders for 2024 was $149,292,000, down from $570,785,000 in 2023[605]. - The company reported finance costs of $135,593,000 in 2024, an increase of 36.6% from $99,135,000 in 2023[603]. - The company identified a material weakness in internal control over financial reporting as of December 31, 2024, affecting the reliability of financial statements[589]. - Total assets increased to $6,175,025 thousand in 2024, up from $5,837,394 thousand in 2023, representing a growth of 5.8%[608]. - Net income for 2024 was $229,583 thousand, a decrease of 68.1% compared to $718,199 thousand in 2023[611]. - Cash and cash equivalents rose significantly to $469,930 thousand in 2024, compared to $220,549 thousand in 2023, marking an increase of 112.5%[611]. - Total liabilities increased to $2,918,190 thousand in 2024, up from $2,629,614 thousand in 2023, reflecting a rise of 11%[608]. - Retained earnings grew to $1,766,435 thousand in 2024, compared to $1,649,242 thousand in 2023, an increase of 7.1%[608]. - Cash flows from operating activities provided $216,725 thousand in 2024, a turnaround from a cash outflow of $274,682 thousand in 2023[611]. - Debt payable increased to $1,763,612 thousand in 2024, up from $1,534,730 thousand in 2023, indicating a rise of 14.9%[608]. - Cash received from interest and dividend income was $20,992 thousand in 2024, significantly higher than $6,438 thousand in 2023, an increase of 226.5%[612]. - The company reported a capital provision loss of $552,066 thousand in 2024, an improvement from a loss of $1,341,923 thousand in 2023[611]. - Total shareholders' equity increased to $3,256,835 thousand in 2024, compared to $3,207,780 thousand in 2023, reflecting a growth of 1.5%[608]. - The total shareholders' equity at the end of the period for 2024 was $3,256,835,000, up from $3,207,780,000 at the end of 2023, reflecting an increase of about 1.5%[614]. - The company experienced a foreign currency translation adjustment of $2,808,000 for the year ended December 31, 2024, compared to a loss of $39,737,000 in 2023, showing a significant improvement[614]. - Dividends paid by Burford Capital amounted to $27,327,000 for the year ended December 31, 2024, slightly down from $27,499,000 in 2023[614]. - The total number of ordinary shares outstanding increased from 219,313,388 at the beginning of 2024 to 220,091,851 at the end of the period, representing a net increase of 778,463 shares[614]. - The company reported a comprehensive income of $10,120,000 for the year ended December 31, 2024, compared to $7,312,000 in 2023, indicating an increase of approximately 38%[614]. - Burford Capital's retained earnings at the end of 2024 were $1,766,435,000, up from $1,649,242,000 at the end of 2023, marking an increase of about 7.1%[614]. - The total capital contribution from third parties was recorded at $(162,618,000) for the year ended December 31, 2024, compared to a contribution of $164,759,000 in 2023, indicating a significant shift in capital dynamics[614]. - The company’s treasury shares increased from (350,947) at the beginning of 2024 to (669,947) at the end of the period, reflecting a decrease in treasury shares held[614]. Debt and Risk Management - As of December 31, 2024, the company had $1.8 billion in aggregate principal amount of debt securities outstanding, with future interest payments totaling $690.5 million until their respective maturities[560]. - The maximum credit exposure for financial assets held at amortized cost was $17.1 million as of December 31, 2024, down from $17.8 million in 2023, with no material expected credit loss identified[563]. - The company’s capital provision assets could see a change of $468.1 million in consolidated income and $460.7 million in net assets with a 10% fluctuation in related asset prices[556]. - The company is exposed to market risk, with a potential impact of $7.9 million on consolidated income and $10.8 million on net assets if corporate bond and investment fund prices fluctuate by 10%[555]. - If interest rates increased or decreased by 25 basis points, the net income for the year ended December 31, 2024, would change by $1.2 million[568]. - The company is exposed to currency risk, with capital provision assets in various currencies, including £9.6 million in pound sterling and €192.9 million in Euro as of December 31, 2024[566]. - The company incurred interest at a fixed rate on outstanding debt securities, mitigating exposure to changes in market interest rates[567]. - The company has not recognized any impairments for the years ended December 31, 2024, 2023, and 2022[563]. - The company holds cash and cash equivalents with a maximum credit risk exposure mitigated by placing cash with reputable banks[561]. Corporate Governance and Responsibility - The company has adopted corporate responsibility practices, emphasizing the positive social impact of legal finance in increasing access to justice[130][132]. - The company’s compensation structure aims to attract and retain talent, offering competitive benefits and performance-based compensation[137][139]. - The company is a founding member of the Association of Litigation Funders of England and Wales, promoting self-regulation in the litigation financing sector[126]. Financial Reporting and Valuation - The Group's consolidated financial statements are prepared in accordance with US GAAP, with significant estimates affecting reported amounts of assets and liabilities[619]. - The Group's valuation processes for financial instruments involve reassessing the values of assets and liabilities at each reporting date[644]. - The Group's capital provision assets are fair valued using an income approach, which estimates fair value based on risk-adjusted future cash flows[650]. - Cash flow forecasts for capital provision assets incorporate management's assumptions related to creditworthiness and collectability, with updates made each reporting period[651]. - The risk-adjustment factor for capital provision assets can change based on objective events in the litigation process, with an example showing a risk premium adjustment from 65% to 32.5% following a favorable ruling[652]. - Non-controlling interests are presented as a separate component of shareholders' equity, reflecting income or loss allocated to owners other than the Company[656]. - Asset management income is derived from management fees based on a percentage of private fund commitments, recognized over time as services are provided[658]. - The Group's insurance activities include underwriting legal expenses insurance policies, contributing to "Other income" in the financial statements[659]. - Business combinations are accounted for using the acquisition method, with acquisition-related costs expensed as incurred[670]. - Goodwill from acquisitions is measured at cost less any accumulated impairment losses, tested for impairment annually[672]. - The Group evaluates its deferred tax assets and may record a valuation allowance if it determines that a portion of the tax benefit will not be realized[679]. - The Group recognizes tax benefits from uncertain tax positions only if it is more likely than not that the position will be sustained upon examination[680]. - The Group's effective tax rate was 9%, 3%, and 11% for the years ended December 31, 2024, 2023, and 2022, respectively, reflecting varying income and losses reported to different jurisdictions[698]. - A substantial portion of the Group's income for the year ended December 31, 2024, was recognized in low tax jurisdictions[698]. - The Group adopted ASU 2023-07 on January 1, 2024, with an immaterial impact on the consolidated financial statements[695]. - The Group expects the impact of ASU 2023-06 on the consolidated financial statements to be immaterial[689]. - The Group is currently evaluating the impact of ASU 2023-09 and expects it to be immaterial[690]. - The Group's operating subsidiaries are subject to taxation in various jurisdictions, including Australia, Ireland, Singapore, the United Kingdom, and the United States[697]. - The Group's income tax exemption in Guernsey has been applied for and granted for the year ended December 31, 2024[696]. - The Group's prepayments and other payables are recognized at nominal value and are non-interest-bearing[686]. - The Group's property and equipment are recorded at cost less accumulated depreciation, with useful lives ranging from 3 to the life of the lease[685]. - The Group's net income/(loss) per ordinary share is presented as basic and diluted, reflecting potential dilution from share-based awards[688].

Financial Data and Key Metrics Changes - The company reported record cash realizations in 2024, with realizations of $641 million, significantly higher than in 2023 [51][14] - Net realized gains reached $327 million, more than double the average annual net realized gains over the prior four years, indicating strong portfolio performance [53][17] - Operating expenses decreased by approximately 43% from 2023, driven by lower long-term incentive compensation [32][79] Business Line Data and Key Metrics Changes - The Principal Finance segment saw net realized gains of $327 million, a 75% increase compared to the previous year, driven by multiple significant case resolutions [37][15] - The Asset Management segment reported $26 million in receipts, down from $32 million in 2023, reflecting lower revenue recognition tied to fair value movements [76][31] Market Data and Key Metrics Changes - The portfolio has grown at a 15% CAGR over the last five years, with a total value exceeding $5 billion [35][19] - The fair value of the portfolio, excluding YPF, is approximately 31% of deployed cost, indicating potential for future revenue generation [36][41] Company Strategy and Development Direction - The company is focusing on cash generation and portfolio performance, emphasizing the importance of cash realizations over accounting metrics [13][10] - There is a strategic shift towards sharing more about target realizations for new business, aiming for higher returns on investments [20][120] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of the court system post-pandemic, leading to increased portfolio activity and cash realizations [16][88] - The company is confident in maintaining high-quality investments and returns, with a substantial portfolio expected to generate cash flow for years to come [87][86] Other Important Information - The transition to U.S. domestic filer status will enhance transparency and reporting, with a focus on segment reporting for better clarity [23][26] - The company maintains a strong capital structure with approximately $1.8 billion in outstanding debt, well below covenant levels [84][79] Q&A Session Summary Question: Clarification on unrealized losses in the quarter - Management confirmed that unrealized losses were primarily driven by discount rate changes and the movement from unrealized to realized gains [91][92] Question: Nature of commitments entered into during the quarter - Management noted a diverse range of opportunities, with a mix of lower-risk, shorter-duration investments and higher-risk, longer-duration cases [93][96] Question: Implications of the new U.S. administration - Management indicated that litigation finance remains accepted in the U.S. market, with no significant regulatory concerns anticipated [108][109] Question: Status of YPF-related assets - Management stated that the ongoing enforcement process is being closely monitored, with no additional comments on the RA-4 intervention [107][74]

March 3, 2025 Burford Capital Fourth Quarter and Full Year 2024 Financial Results This presentation is for the use of Burford's public shareholders and is not an offering of any Burford private fund. Notice and 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 and its subsidiaries (the "Company", "Burford", "we", "our" or "us") as of and for the three ...

Financial Reporting - Burford Capital Limited announced the release date for its financial results for the year ended December 31, 2024, on February 24, 2025[4] - The company is previewing changes to its financial reporting framework, indicating a potential shift in how it presents its financial data[4] - The press release regarding the financial results is attached as Exhibit 99.1, which may contain further details on performance metrics[5]

Core Viewpoint - Burford Capital Limited will host an Investor Day on April 3, 2025, in New York City, providing a strategic update and an introduction for new investors and analysts [1][2]. 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 [3]. - The company is publicly traded on both the New York Stock Exchange (NYSE: BUR) and the London Stock Exchange (LSE: BUR), with offices in major cities including New York, London, Chicago, Washington, DC, Singapore, Dubai, and Hong Kong [3]. Event Details - The Investor Day will be led by Burford's executive management team and key leaders, with a presentation starting at 9:00 AM EDT [2]. - Venue capacity is limited, and interested parties are encouraged to register for in-person attendance or to access the event via webcast [2][3].

Core Insights - Burford Capital's latest Burford Quarterly highlights innovative financial strategies in the legal sector, emphasizing the importance of legal finance in transforming traditional business models [2][4] - The report discusses various trends in commercial disputes, including alternative billing structures, opting out of litigation, and monetizing intellectual property (IP) assets [2][3] Group 1: Legal Finance Innovations - Law firms are increasingly adopting creative billing structures as alternatives to hourly fees, which allows for more flexible financial strategies [2] - Companies are choosing to opt out of litigation to maximize and accelerate recoveries, indicating a shift in how businesses approach legal disputes [2] - The monetization of IP assets is becoming a key strategy for businesses, enabling them to invest in other critical areas while managing legal risks [2] Group 2: Sector-Specific Insights - In the healthcare sector, businesses are recognizing the value of legal finance to alleviate the financial burden of high-cost litigation, particularly in light of upcoming opt-out deadlines for antitrust claims [3] - The life sciences and pharmaceutical industries are leveraging legal finance to protect and monetize IP assets, which is crucial for sustaining investment in research and development [3] - A roundtable discussion among London-based arbitration lawyers highlights the impact of technology and AI on international arbitration, showcasing the evolving landscape of legal practices [3] Group 3: Industry Perspective - Aviva Will, President of Burford Capital, emphasizes that legal finance is a transformative tool for the legal industry, facilitating growth by providing capital and mitigating risks [4] - The Burford Quarterly serves as a resource for business executives, general counsels, and law firm attorneys to understand and utilize financial tools effectively within the legal framework [4]

Core Viewpoint - Burford Capital Limited (BUR) has shown a modest gain of 0.3% over the past four weeks, closing at $13.54, with analysts suggesting a potential upside of 45.5% based on a mean price target of $19.70 [1] Price Targets - The average price target for BUR is derived from five short-term estimates, ranging from a low of $18 to a high of $22.50, with a standard deviation of $1.86, indicating a relatively tight clustering of estimates [2] - The lowest estimate suggests a 32.9% increase from the current price, while the highest estimate indicates a 66.2% upside [2] Analyst Sentiment - Analysts have shown increasing optimism regarding BUR's earnings prospects, as evidenced by a strong consensus in revising earnings per share (EPS) estimates higher, which correlates with potential stock price increases [4][9] - Over the past 30 days, one estimate has increased with no negative revisions, leading to a 4.6% rise in the Zacks Consensus Estimate for the current year [10] Zacks Rank - BUR holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for upside in the near term [11] Conclusion on Price Targets - While the consensus price target may not be a reliable predictor of BUR's price movement magnitude, the direction indicated by these targets appears to be a useful guide for investors [12]