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 ...

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]