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

Burford Capital Limited (NYSE:BUR) Q1 2023 Earnings Call Transcript June 13, 2023 10:00 AM ET Company Participants Christopher Bogart - CEO & Director Jordan Licht - Chief Financial Officer Jon Molot - Chief Investment Officer Conference Call Participants James Hamilton - Numis Securities Limited Julian Roberts - Jefferies Matthew Howlett - B. Riley Securities Operator Hello, and welcome to the Burford Capital's First Quarter 2023 Results Conference Call. My name is Alex, and I will be coordinating the call ...

17 Burford Capital Quarterly Report March 2023 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS ($ IN THOUSANDS, EXCEPT SHARE DATA) (UNAUDITED) | --- | --- | --- | --- | --- | --- | --- | |----------------------------------------------------------------------------------------------------------------------------------------|---------------------|------------------------------------|------------------|----------------------------------------|----------------------------------------------------|------ ...

Burford Capital Limited (NYSE:BUR) Q4 2022 Earnings Conference Call May 16, 2023 8:30 AM ET Company Participants Christopher Bogart - CEO & Director Jon Molot - Chief Investment Officer Jordan Licht - Chief Financial Officer Conference Call Participants James Hamilton - Numis Securities Limited David Chiaverini - Wedbush Securities Operator Hello. And welcome to Burford Capital’s 2022 Annual Financial Results. My name is Harry and I’ll be your operator. [Operator Instructions] It is now my pleasure to hand ...

• Historically, fair value has been based on deployed cost and the occurrence of observable events (case milestones or transactions) in the underlying litigation matter Expected inflows Discount rate and expected duration Burford has over time augmented its lawyer-driven investment process with AI-powered enhancements, including in our probabilistic modeling - Constructive dialogue between Burford, the SEC staff and our external auditors resulted in a revised approach to fair value accounting for legal fina ...

Capital Provision Assets - The company's capital provision assets are reported at fair value, with YPF-related assets accounting for 32%, 39%, and 45% of total capital provision assets at December 31, 2022, 2021, and 2020, respectively[460] - The carrying value of YPF-related assets was $1.2 billion with $1.1 billion of unrealized gains at December 31, 2022, 2021, and 2020[460] - Capital provision assets increased to $3.74 billion at the end of 2022, up from $3.12 billion in 2021, driven by deployments of $727.3 million and realizations of $426.7 million[231] - Unrealized fair value of capital provision assets reached $1.69 billion at the end of 2022, compared to $1.52 billion in 2021[231] - Legal finance assets involving claims against entities with Russian connections totaled $127.2 million (3% of total capital provision assets) at December 31, 2022, up from $102.6 million in 2021[482] - The company updated its valuation policy for capital provision assets in 2022, affecting the reported amounts of assets and liabilities[472] - Realized gains on capital provision assets were $161.7 million in 2022, compared to $153.6 million in 2021[232] - Total capital provision assets increased to $3,716,811 thousand in 2022, driven by deployments and income for the period[467] - The aggregate carrying value of capital provision assets on a consolidated basis was $3.7 billion at December 31, 2022, up from $3.1 billion in 2021[617] - Fair value adjustments on the portfolio of capital provision assets, excluding YPF-related assets, were $518.5 million (21% of carrying value) at December 31, 2022, compared to $350.0 million (19%) in 2021[617] - Total capital provision-direct assets on a consolidated basis were $4.12 billion in 2022, with a carrying value of $2.63 billion[613] - The carrying value of YPF-related assets (Petersen and Eton Park combined) was $1.2 billion at December 31, 2022, 2021, and 2020 on a consolidated basis[623] - On a Burford-only basis, the carrying value of YPF-related assets increased slightly to $823.0 million at December 31, 2022, compared to $820.8 million in 2021 and $813.2 million in 2020[623] - The estimated impact of the Ruling on the fair value of YPF-related capital provision assets at March 31, 2023, is an approximate increase of $285 million on a consolidated basis, with $100 million relating to third-party interests and $185 million on a Burford-only basis[623] - Realized gains on the capital provision-direct portfolio increased by 16% to $158.9 million for the year ended December 31, 2022, compared to $137.2 million in 2021[627] - On a Burford-only basis, realized gains on the capital provision-direct portfolio increased by 4% to $133.3 million for the year ended December 31, 2022, compared to $128.4 million in 2021[627] - Consolidated undrawn commitments were $1.9 billion at December 31, 2022, compared to $1.7 billion in 2021 and $1.6 billion in 2020[631] - Burford-only undrawn commitments were $1.3 billion at December 31, 2022, primarily attributable to the capital provision-direct portfolio, compared to $1.1 billion in 2021[631] - Fair value adjustments, net of previously recognized unrealized gains, increased to $167.2 million for the year ended December 31, 2022, compared to $53.5 million in 2021 on a consolidated basis[628] - On a Burford-only basis, fair value adjustments increased to $74.0 million for the year ended December 31, 2022, compared to $29.7 million in 2021[628] - Capital provision-direct income was $206.2 million for the year ended December 31, 2022, compared to $153.4 million in 2021 and $280.9 million in 2020 on a Burford-only basis[624] Debt and Financial Liabilities - The company's total debt was $1,147,083, $1,071,626, and $646,083 at December 31, 2022, 2021, and 2020, respectively[243] - Debt interest expense was $74,116, $56,454, $37,814, and $37,528 for the years ended December 31, 2022, 2021, 2020, and 2019, respectively[471] - Financial liabilities for third-party interests in capital provision assets increased slightly to $425,205 thousand in 2022[467] - Issued $360.0 million aggregate principal amount of the 2030 Notes in April 2022[575] - Weighted average maturity of outstanding debt securities was 4.9 years as of December 31, 2022, compared to 2.4 years for concluded capital provision-direct assets[575] - Consolidated net debt to consolidated tangible assets ratio was 25% at December 31, 2022, up from 19% in 2021 and 11% in 2020[575] - Total assets of $3.6 billion, third-party indebtedness of $1.3 billion, and total revenues of $245.4 million for the year ended December 31, 2022[575] - Finance costs rose 32% to $77.4 million in 2022 from $58.6 million in 2021, mainly due to higher outstanding debt from new bond issuances[537] - Finance costs increased 50% to $58.6 million in 2021 compared to $39.0 million in 2020, driven by higher outstanding indebtedness[550] Revenue and Income - Total revenues increased by 47% primarily driven by a 64% increase in capital provision income to $319.1 million in 2022 compared to $194.6 million in 2021[484] - Net income attributable to Burford Capital Limited shareholders was $30.5 million in 2022, compared to a loss of $28.8 million in 2021[484] - Asset management income decreased by 37% to $9.1 million in 2022 due to lower management fees as BAIF's investment period ended in April 2022[486] - Insurance income decreased to a loss of $1.4 million in 2022 compared to income of $5.1 million in 2021, reflecting a decline in legacy insurance business revenues[486] - Services income decreased by 42% to $0.7 million in 2022 as the company transitioned to a contingent risk model[486] - Marketable securities and bank interest decreased to a loss of $7.7 million in 2022 due to volatility in debt markets and unrealized losses of $9.7 million[486] - Total revenues increased by $101.9 million (47%) to $319.2 million in 2022 compared to $217.3 million in 2021, driven by a $124.6 million increase in capital provision income[514] - Operating income grew by $126.4 million (184%) to $195.0 million in 2022 from $68.6 million in 2021[514] - Net income attributable to shareholders improved by $59.3 million, from a loss of $28.8 million in 2021 to a profit of $30.5 million in 2022[514] - Capital provision income increased by $124.6 million (64%) to $319.1 million in 2022, with fair value adjustments contributing $169.1 million compared to $45.8 million in 2021[515] - Capital provision income decreased 38% to $194.6 million in 2021 compared to $314.9 million in 2020, primarily due to lower realized gains[541] - Insurance income increased 189% to $5.1 million in 2021 compared to $1.8 million in 2020, reflecting strong performance in the after the event business[544] - Marketable securities income and bank interest increased 391% to $1.9 million in 2021 compared to $0.4 million in 2020, driven by higher interest income[545] - Total revenues decreased by 38.7% to $327.9 million in 2020 compared to $534.5 million in 2019[554] - Capital provision income declined by 45.7% to $314.9 million in 2020 from $579.8 million in 2019[554] - Services income decreased 62% to $0.8 million in 2020 compared to $2.1 million in 2019[586] Operating Expenses - Operating expenses decreased by 16% to $124.3 million in 2022, primarily due to a 24% reduction in compensation and benefits to $86.3 million[486][487] - The company's total operating expenses decreased by $24.5 million (16%) to $124.3 million in 2022, primarily due to lower legacy asset recovery incentive compensation[514] - Operating expenses increased 25% to $148.7 million in 2021 compared to $119.1 million in 2020, primarily due to higher compensation and benefits[546] - Operating expenses decreased by 14% to $119.1 million in 2020 compared to $138.1 million in 2019[558] - Case-related expenditures ineligible for inclusion in asset cost increased 56% to $8.2 million in 2022 compared to $5.3 million in 2021[517] - Compensation and benefits increased 48% to $113.0 million in 2021 compared to $76.2 million in 2020, reflecting legacy asset recovery incentive compensation[547] - Compensation and benefits decreased 18% to $76.2 million for the year ended December 31, 2020, compared to $93.1 million in 2019[587] - Case-related expenditures ineligible for inclusion in asset cost decreased by 57% to $4.8 million in 2020 from $11.2 million in 2019[559] - Equity and listing related operating expenses increased by 351% to $7.9 million in 2020 from $1.8 million in 2019[559] Risks and Challenges - The company has commitments that exceed available funds, which could impact its ability to meet obligations and damage business relationships[455] - The company faces competition in the asset management business, which could affect its ability to raise funds and grow the business[436] - Negative publicity about the legal finance industry or the company could adversely affect its reputation and business[436] - The company's international operations are subject to risks such as political instability, economic conditions, and regulatory differences[465] - The SEC proposed new rules in 2022 that could significantly impact the company's asset management business if enacted[468] - COVID-19 pandemic caused delays in court operations, resulting in lower cash proceeds from litigation resolutions and extended litigation timelines[439] - Litigants facing financial difficulties or insolvency may delay or reduce expected realizations, impacting the company's ability to recycle capital[439] - ESG considerations and stakeholder scrutiny could lead to reputational harm, increased costs, and potential liabilities, impacting the company's financial position[439] - The company does not engage in currency hedging, exposing it to foreign exchange rate fluctuations, particularly with pound sterling-denominated securities[442] Cash Flow and Liquidity - Cash receipts increased 17% to $328.0 million in 2022 compared to $281.5 million in 2021, primarily due to increased proceeds from capital provision-direct assets[580] - Cash and cash equivalents decreased to $180.3 million in 2021 from $322.1 million in 2020, while marketable securities increased to $175.3 million from $16.6 million[563] - Net cash used in operating activities was $466.1 million in 2022, compared to $585.4 million in 2021, reflecting lower deployments and higher net income[571] - Net cash provided by financing activities was $399.1 million in 2022, down from $444.8 million in 2021, due to lower debt issuance and higher third-party capital contributions[571] - Cash and cash equivalents were $107.7 million at December 31, 2022, down from $180.3 million at December 31, 2021[591] - Due from settlement of capital provision assets increased to $116.6 million at December 31, 2022, compared to $86.3 million at December 31, 2021[591] - Net cash used in operating activities decreased by $119.26 million to $466.10 million in 2022 compared to $585.36 million in 2021[601] - Cash and cash equivalents decreased to $107.66 million in 2022 from $180.26 million in 2021, while marketable securities decreased to $136.36 million from $175.34 million[606] - Cash receipts (non-GAAP financial measure) were $327.99 million in 2022, up from $281.47 million in 2021[642] Investments and Fair Value - BOF-C and a "sidecar" fund, both with a single sovereign wealth fund investor, represented approximately 25% and 28% of AUM at December 31, 2022 and 2021, respectively[436] - The Group's debt securities are classified as Level 1 within the fair value hierarchy, with outstanding indebtedness held at amortized cost in the consolidated financial statements[499] - The Group has elected the fair value option for certain equity method investments, marketable securities, and financial liabilities relating to third-party interests in capital provision assets[501] - Sensitivity analysis for Level 3 valuations includes a weighted average discount rate of 5.8% for single capital provision assets and 12.9% for portfolios with equity risk[503] - The Group provides revolving credit facilities to certain private funds for capital calls, which are entirely discretionary[504] - The company purchased 468,000 ordinary shares on the open market in May 2022 at an average price of £6.33 ($8.01) per share, resulting in a $3.7 million increase in the treasury balance[506] - LTIP awards granted during 2022 had a weighted average grant date fair value of $12.2 million, $16.6 million, and $7.1 million for 2022, 2021, and 2020 respectively[507] - The company's Unrestricted Subsidiaries had total assets of $506.4 million and $43.9 million in total revenues for the year ended December 31, 2021[607] Taxes and Provisions - Provision for income taxes increased 19% to $11.6 million in 2022 compared to $9.7 million in 2021, driven by higher taxable income in the United States[538] - Provision for income taxes decreased 26% to $23.5 million for the year ended December 31, 2020, compared to $31.9 million in 2019[591] - One adverse insurance claim was reported in 2022, with no outstanding loss reserves at the end of the year[237] Foreign Exchange and Currency - Foreign currency transaction losses increased 40% to $7.7 million in 2022 compared to $5.5 million in 2021, primarily due to US dollar strength against pound sterling[519] - Foreign currency transactions gains increased to $10.7 million for the year ended December 31, 2020, compared to $2.0 million in 2019[590] Goodwill and Intangible Assets - The Group's goodwill primarily relates to the acquisition of BCIM Holdings LLC in December 2016, with no evidence of goodwill impairment at December 31, 2022, 2021, and 2020[500] - Amortization expense for the intangible asset related to BCIM Holdings LLC was $8.7 million and $9.5 million for the years ended December 31, 2020, and 2019, respectively[500] Portfolio and Asset Management - The consolidated portfolio increased to $5.5 billion in 2022 from $4.6 billion in 2021, with the Group-wide portfolio reaching $6.1 billion in 2022[582] - Burford-only portfolio proceeds from capital provision-direct assets increased to $295.64 million in 2022 from $231.41 million in 2021[642] - Burford-only portfolio of capital provision assets increased by 15% to $3.9 billion at December 31, 2022, compared to $3.4 billion at December 31, 2021[584] - Capital provision segment generated income before income taxes of $57.8 million on a Burford-only basis[569] - Maximum exposure to loss decreased to $20,515 thousand in 2022 from $23,148 thousand in 2021[476] - Net income attributable to non-controlling interests increased 207% to $67.0 million for the year ended December 31, 2022, compared to $21.8 million for the year ended December 31, 2021[491] - Loss on debt extinguishment decreased 47% to $0.9 million for the year ended December 31, 2022, compared to $1.6 million for the year ended December 31, 2021[489] - Net income attributable to non-controlling interests increased 59% to $21.8 million in 2021 compared to $13.7 million in 2020, reflecting higher fair value of assets[553]

Under the auditing standards promulgated by the Public Company Accounting Oversight Board, a restatement of financial statements is by definition evidence of a material weakness in internal controls. As a result, Burford has no alternative but to conclude that, due to the material weaknesses in Burford's internal control over financial reporting, Burford's internal control over financial reporting and Burford's disclosure controls and procedures were not effective at each of December 31, 2022 and 2021. The ...

Burford Capital Limited (NYSE:BUR) Q2 2022 Earnings Conference Call August 9, 2022 10:00 AM ET Company Participants Christopher Bogart - Chief Executive Officer Jonathan Molot - Chief Investment Officer Kenneth Brause - Chief Financial Officer Conference Call Participants David Chiaverini - Wedbush Securities Julian Roberts - Jefferies Andrew Shepherd-Barron - Peel Hunt LLP James Hamilton - Numis Securities Limited Christopher Bogart Thanks very much, and hello, everybody. Thank you for taking some time in ...

Forward-looking statements In addition to statements of historical fact, this report for the six months ended June 30, 2022 (this "Interim Report") contains "forward-looking statements" within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended (the "Exchange Act"). The disclosure and analysis set forth in this Interim Report include assumptions, expectations, projections, intentions and beliefs about future events in a number of instances, particularly in relation to our operat ...

Burford Capital Limited (NYSE:BUR) Q4 2021 Earnings Conference Call March 29, 2022 10:00 AM ET Company Participants Christopher Bogart - Chief Executive Officer Jon Molot - Chief Investment Officer Ken Brause - Chief Financial Officer Conference Call Participants David Chiaverini - Wedbush Securities James Hamilton - Numis Securities Operator Hello and welcome to the Burford Capital Presentation of 2021 Full Year Results. My name is Lauren and I will be coordinating your call today. [Operator Instructions] ...