Burford Capital(BUR) - 2025 Q2 - Quarterly Results

Introduction and Disclaimers This section provides essential legal disclaimers, outlines forward-looking statement caveats, clarifies financial reporting basis, and introduces Burford Capital Notice & Disclaimer This section provides standard legal disclaimers, clarifies presentation scope, and notes that 2Q25 and YTD25 results are not indicative of full-year performance - Presentation covers 3 and 6 months ended June 30, 2025, and is not a complete business description[2] Forward-Looking Statements This section details forward-looking statements, noting actual results may differ due to risks like litigation outcomes, AI model inaccuracy, and regulatory changes - Forward-looking statements involve known and unknown risks that could cause actual results to differ materially[3] - Key risk factors include adverse litigation outcomes, AI technology inaccuracy, regulatory changes, and cybersecurity breaches[3][4] Basis of Presentation & Non-GAAP Measures Burford uses US GAAP but supplements with non-GAAP "Burford-only" and "adjusted Burford-only" measures for segment reporting and performance assessment - Burford uses US GAAP but supplements with "Burford-only" and "adjusted Burford-only" non-GAAP measures for segment reporting[7] - Non-GAAP measures like cash receipts and Tangible Book Value Per Ordinary Share (TBVPS) assess operating performance and financial condition[8] About Burford & Conference Call Burford Capital, a leading global legal finance firm, announced a conference call for August 7, 2025, to discuss 2Q25 results - Burford Capital is a leading global legal finance and asset management firm, publicly traded on NYSE and LSE[15] - A conference call for investors and analysts was scheduled for August 7, 2025, at 9:00 am EDT / 2:00 pm BST[14] Executive Summary & Key Highlights This section summarizes Burford's strong financial performance, new business generation, and strategic capital raising initiatives for 2Q25 and YTD25 CEO Statement & Overall Performance CEO Christopher Bogart reported significant revenue and profitability increases, substantial new business, and a successful $500 million capital raise in July - Burford saw sharp increases in revenue and profitability in 2Q25 and YTD25[16] - Substantial levels of new business were written, illustrating strong demand and pipeline[16] - $500 million of new capital was raised in July, reflecting market confidence and underscoring Burford's competitive moat[17] Key Messages on 2Q25 and YTD25 Results Key messages highlight strong new business momentum, substantial increases in revenue and net income, and scaling earnings capacity driven by portfolio growth - New business momentum illustrates strong demand[20] - Revenue and net income are up substantially[20] - Portfolio base (cost basis + definitive undrawn commitments) increased by 15% in YTD25[20] - Cash receipts were $48 million in 2Q25 and $306 million in YTD25, up 25% from YTD24[21] Financial Metrics Summary (Burford-only) Burford-only metrics show significant growth in capital provision income and net income for YTD25, with stable debt ratios despite decreased liquidity | Metric | YTD25 ($ million) | YTD24 ($ million) | 2Q25 ($ million) | 2Q24 ($ million) | Change YTD25 vs YTD24 | | :-------------------------- | :---------------- | :---------------- | :--------------- | :--------------- | :-------------------- | | Capital provision income | 246 | 137 | 155 | 119 | +79.6% | | Net realized gains | 61 | 129 | 27 | 99 | -52.7% | | Asset management income | 21 | 18 | 7 | 11 | +16.7% | | Net income | 119 | 24 | 88 | 54 | +395.8% | | Diluted earnings per share | 0.53 | 0.11 | 0.39 | 0.24 | +381.8% | | Cash receipts | 306 | 245 | 48 | 107 | +24.9% | | Balance Sheet & Liquidity Measures | Jun 30, 2025 ($ million) | Dec 31, 2024 ($ million) | | :--------------------------------- | :----------------------- | :----------------------- | | Shareholders' equity | 2,503 | 2,419 | | Book value per ordinary share | 11.44 | 11.03 | | Tangible book value per ordinary share | 10.83 | 10.42 | | Debt payable | 1,780 | 1,764 | | Debt / Net tangible equity | 0.7x | 0.8x | | Liquidity (Cash and marketable securities) | 440 | 521 | GAAP Consolidated Financial Results This section presents Burford's consolidated GAAP financial results, highlighting significant increases in net income and total revenues for 2Q25 and YTD25 Consolidated Statement of Operations Consolidated GAAP net income significantly increased for 2Q25 and YTD25, driven by substantial revenue growth from capital provision income and YPF-related unrealized gains | Metric ($ thousands) | YTD25 | YTD24 | 2Q25 | 2Q24 | | :------------------------------------------ | :------ | :------ | :----- | :----- | | Revenues | | | | | | Capital provision income/ (loss) | 355,680 | 198,506 | 224,164 | 157,745 | | Net realized gains/ (losses) | 107,915 | 175,333 | 40,296 | 117,471 | | Unrealized gains/ (losses) ex YPF-related assets | 47,918 | (12,278) | 45,398 | 17,690 | | Unrealized gains/ (losses) from YPF-related assets | 180,921 | 37,647 | 125,492 | 21,380 | | Total revenues | 310,145 | 203,948 | 191,286 | 159,653 | | Operating expenses | | | | | | Total operating expenses | 90,166 | 68,289 | 49,065 | 38,151 | | Net income/(loss) | | | | | | Net income/(loss) | 142,063 | 57,774 | 105,153 | 75,272 | | Net income/(loss) attributable to Burford Capital Limited shareholders | 119,225 | 23,809 | 88,296 | 53,746 | - Consolidated GAAP net income was $105 million in 2Q25 and $142 million in YTD25[19] - Net income attributable to Burford Capital Limited shareholders was $88 million in 2Q25 and $119 million in YTD25[19] Total Segments (Burford-only) Financial Results This section details Burford-only financial results for all segments, showing substantial net income growth driven by capital provision income and unrealized gains Total Segments Statement of Operations Burford-only total segments reported substantial YTD25 net income growth, driven by increased capital provision income from unrealized gains and higher asset management income | Metric ($ thousands) | YTD25 | YTD24 | 2Q25 | 2Q24 | | :------------------------------------------ | :------ | :------ | :----- | :----- | | Revenues | | | | | | Capital provision income/ (loss) | 246,360 | 137,263 | 155,410 | 119,360 | | Net realized gains/ (losses) | 61,176 | 129,047 | 26,592 | 99,153 | | Unrealized gains / (losses) | 167,404 | 9,775 | 116,639 | 18,863 | | Asset management income/(loss) | 20,949 | 18,160 | 7,112 | 11,487 | | Total revenues | 282,798 | 168,655 | 171,497 | 137,277 | | Operating expenses | | | | | | Total operating expenses | 85,635 | 66,966 | 46,112 | 37,302 | | Net income/(loss) | | | | | | Net income/(loss) | 119,225 | 23,809 | 88,296 | 53,746 | | Per diluted ordinary share | 0.53 | 0.11 | 0.39 | 0.24 | - Capital provision income was $155 million in 2Q25 and $246 million in YTD25, up 79% from YTD24, driven by higher unrealized gains[29] - Net income was $88 million ($0.39 per diluted share) in 2Q25 and $119 million ($0.53 per diluted share) in YTD25, nearly 5x compared to YTD24[29] Principal Finance Segment This section details the Principal Finance segment's performance, portfolio, new business, and historical track record, highlighting strong returns and growth Segment Results The Principal Finance segment reported significant YTD25 revenue growth, primarily from capital provision income and unrealized gains, leading to higher income before taxes | Metric ($ thousands) | YTD25 | YTD24 | 2Q25 | 2Q24 | | :------------------------------------------ | :------ | :------ | :----- | :----- | | Revenues | | | | | | Capital provision income/ (loss) | 246,360 | 137,263 | 155,410 | 119,360 | | Net realized gains/ (losses) | 61,176 | 129,047 | 26,592 | 99,153 | | Unrealized gains/ (losses) | 167,404 | 9,775 | 116,639 | 18,863 | | Total revenues | 261,602 | 149,961 | 163,952 | 125,540 | | Operating expenses | | | | | | Total operating expenses | 70,338 | 55,334 | 37,875 | 30,673 | | Income/(loss) before income taxes | | | | | | Income/(loss) before income taxes | 125,488 | 27,040 | 93,582 | 60,335 | Portfolio Snapshot As of June 30, 2025, the Principal Finance portfolio fair value reached $3,811 million, with $1,754 million in undrawn commitments, concentrated in North America and EMEA - Portfolio fair value was $3,811 million as of June 30, 2025, up from $3,571 million at the end of 2024[34][36] - Undrawn commitments totaled $1,754 million as of June 30, 2025[34] - Deployed cost (excluding YPF-related assets) is 51% in North America, 26% in EMEA, and 20% Global[38] - Top asset types by deployed cost (excluding YPF-related assets) are Antitrust (20%), IP (20%), and Mixed portfolio (21%)[40] Capital Provision Income and Fair Value Bridge YTD25 capital provision income significantly increased to $246.4 million, driven by unrealized gains, especially from YPF-related assets, with deployments positively impacting fair value | Metric ($ million) | YTD25 | YTD24 | 2Q25 | 2Q24 | | :------------------------------------------ | :------ | :------ | :----- | :----- | | Net realized gains/ (losses) | 61.2 | 129.0 | 26.6 | 99.2 | | Unrealized gains/ (losses), ex YPF-related assets | 48.6 | (15.0) | 34.4 | 4.9 | | Unrealized gains/ (losses) from YPF-related assets | 118.8 | 24.8 | 82.3 | 14.0 | | Total capital provision income/(loss) | 246.4 | 137.3 | 155.4 | 119.4 | - Fair value of capital provision assets increased from $3,627 million (March 31, 2025) to $3,811 million (June 30, 2025) in 2Q25, with deployments and duration impact as key positive drivers[43] New Business New definitive commitments for Principal Finance surged to $518 million in YTD25, a 71% rise, with definitive undrawn commitments growing 38% to $1.1 billion - New definitive commitments were $361 million in 2Q25, significantly higher than any quarter in the past two years[24][52] - New definitive commitments for YTD25 totaled $518 million, up 71% from YTD24[24][49] - Deployments were $81 million in 2Q25 and $211 million in YTD25, up 5% from YTD24[48][51] - Definitive undrawn commitments were $1.1 billion as of June 30, 2025, a 38% increase from December 31, 2024[52] Portfolio Realizations and Realized Gains Principal Finance realizations reached $225 million in YTD25, a 3% increase, with a 76% implied ROIC for 2Q25 and 37% for YTD25 - Realizations were $62 million in 2Q25 and $225 million in YTD25, up 3% from YTD24[58] - YTD25 realizations were well diversified, with six additional assets generating $10 million or more[58] - 2Q25 net realized gains implied a ROIC of 76%, while YTD25 ROIC was 37%, influenced by a large corporate monetization asset in 1Q25 with a 25% ROIC and 40% IRR[58] Historical Track Record - Fully and Partially Concluded Assets Burford generated consistently high returns on $3.5 billion of realizations since inception, with cumulative ROIC and IRR remaining steady at 83% and 26% respectively - Burford generated consistently high returns on $3.5 billion of realizations since inception through June 30, 2025[62] - Cumulative ROIC and IRR on realizations remained steady at 83% and 26% respectively[62] - 81% of concluded case commitments were deployed to adjudication and won (49% IRR, 246% ROIC) or settled (23% IRR, 67% ROIC)[60] Asset ROIC Distribution - Asymmetric Returns Asset ROIC distribution shows favorable risk-adjusted returns with a positive skew, 13% of deployed cost generated ROICs > 200%, and a 9.6% lifetime loss rate - Favorable risk-adjusted return dynamics are exemplified by the positive skew of the distribution of returns since inception[65] - 13% of total deployed cost of concluded cases generated ROICs greater than 200% since inception[65] - 14% of deployments experienced losses, but 31% of deployed cost was recovered, leading to a 9.6% lifetime loss rate on fully and partially concluded assets[65] Historical Track Record by Vintage Historical track record by vintage shows consistent performance with an overall ROIC of 83% and IRR of 26% for realized assets since inception - Overall ROIC for realized assets since inception is 83%, and IRR is 26%[66] - Weighted average life (WAL) for concluded assets is 2.6 years, and for active deployed cost is 3.3 years[67] | Vintage | ROIC (%) | IRR (%) | WAL (years) | | :------ | :------- | :------ | :---------- | | 2009 | 251 | 32 | 4.8 | | 2010 | 108 | 18 | 4.7 | | 2011 | (2) | 0 | 2.5 | | 2012 | 103 | 41 | 2.1 | | 2013 | 93 | 22 | 3.6 | | 2014 | 31 | 10 | 2.9 | | 2015 | 245 | 131 | 2.7 | | 2016 | 64 | 14 | 3.3 | | 2017 | 132 | 18 | 3.3 | | 2018 | 143 | 32 | 1.8 | | 2019 | 65 | 82 | 1.9 | | 2020 | 91 | 29 | 1.8 | | 2021 | 26 | 30 | 1.1 | | 2022 | 146 | 42 | 0.9 | | 2023 | nm | 46 | 0.3 | | 2024 | 36 | 42 | | | 2025 | 68 | 51 | | YPF-Related Assets Burford is well-positioned to monetize $1.6 billion in YPF-related assets, with a $16 billion judgment against Argentina under appeal, and litigation risk remaining - YPF-related assets have a fair value of $1.6 billion as of June 30, 2025[73] - Final judgment was a complete win against Argentina for $16 billion, with Argentina appealing to the Second Circuit Court of Appeals[73] - A favorable ruling ordered Argentina to turn over Class D shares of YPF to partially satisfy the judgment, which is also under appeal[73] - Expected Burford-only net entitlement is around 35% of Petersen case proceeds and 82% of Eton Park case proceeds[71] Asset Management and Other Services Segment This section reviews the Asset Management and Other Services segment's financial performance, income, and portfolio, noting a shift towards balance sheet funding Segment Results The Asset Management segment saw a slight YTD25 revenue increase from asset management income, but 2Q25 incurred a loss before taxes due to higher expenses | Metric ($ thousands) | YTD25 | YTD24 | 2Q25 | 2Q24 | | :------------------------------------------ | :------ | :------ | :----- | :----- | | Revenues | | | | | | Asset management income/ (loss) | 20,949 | 18,160 | 7,112 | 11,487 | | Total revenues | 21,196 | 18,694 | 7,545 | 11,737 | | Operating expenses | | | | | | Total operating expenses | 15,297 | 11,632 | 8,237 | 6,629 | | Income/(loss) before income taxes | | | | | | Income/(loss) before income taxes | 5,899 | 7,062 | (692) | 5,108 | Asset Management Income and Portfolio YTD25 asset management income increased to $21 million due to performance fees, but cash receipts decreased, with a future focus on balance sheet funding - Asset management income was $7 million in 2Q25 and $21 million in YTD25, up from $18 million in YTD24, primarily due to performance fees in the Advantage Fund[81] - Cash receipts from asset management were $1.5 million in 2Q25 and $8.6 million in YTD25, compared to $15.5 million in YTD24[81] - Private funds portfolio is expected to decline in size, with a focus on funding from the balance sheet[81] | Asset Management Income ($ million) | YTD25 | YTD24 | 2Q25 | 2Q24 | | :-------------------------------------- | :---- | :---- | :--- | :--- | | Asset management income | 20.9 | 18.2 | 7.1 | 11.5 | | Cash receipts from asset management | 8.6 | 15.5 | 1.5 | 11.0 | Liquidity and Capital Management This section examines Burford's liquidity, operating expenses, and debt structure, highlighting cash flow dynamics and stable leverage ratios Liquidity Bridge and Cash Receipts Cash and marketable securities decreased to $440 million by June 30, 2025, not including a $500 million July debt offering, while YTD25 cash receipts rose 25% to $306 million - Cash and marketable securities were $440 million as of June 30, 2025, down from $521 million as of December 31, 2024[87] - The June 30, 2025 liquidity level does not include the impact of a $500 million debt offering in July 2025[87] - Cash receipts were $48 million in 2Q25 and $306 million in YTD25, up 25% from YTD24[87] Operating Expenses Total Burford-only operating expenses increased in 2Q25 and YTD25, primarily due to variable non-cash compensation drivers like share price impact on deferred compensation | Metric ($ thousands) | YTD25 | YTD24 | 2Q25 | 2Q24 | | :------------------------------------------ | :------ | :------ | :----- | :----- | | Compensation and benefits | | | | | | Salaries and benefits | 24,144 | 22,566 | 11,749 | 10,909 | | Annual incentive compensation | 9,319 | 9,711 | 5,074 | 4,875 | | Share-based and deferred compensation | 10,064 | 4,067 | 7,265 | 197 | | Long-term incentive compensation including accruals | 19,740 | 14,654 | 12,865 | 13,016 | | Total compensation and benefits | 63,267 | 50,998 | 36,953 | 28,997 | | General, administrative and other | 17,786 | 14,747 | 7,666 | 7,630 | | Case-related expenditures ineligible for inclusion in asset cost | 4,582 | 1,221 | 1,493 | 675 | | Total operating expenses | 85,635 | 66,966 | 46,112 | 37,302 | - Operating expenses increased predominantly due to variable non-cash drivers of compensation and benefits, including the impact of Burford's share price on deferred compensation and higher long-term incentive compensation accruals[89] Debt Structure and Ratios Debt payable remained stable at $1,780 million, with a pro forma weighted average life of 5.2 years after a $500 million July debt issuance, and leverage ratios remain within covenants - Debt payable was $1,780 million as of June 30, 2025, similar to $1,764 million as of December 31, 2024[98] - Pro forma weighted average life (WAL) of outstanding debt is 5.2 years, compared to 2.6 years for concluded assets and 3.3 years for active deployments[92][98] - Consolidated net debt to consolidated tangible assets ratio was 22% (actual) and 20% (pro forma) as of June 30, 2025[94][115] - Consolidated indebtedness to net tangible equity ratio was 0.7x (actual) and 0.9x (pro forma) as of June 30, 2025, well within covenant thresholds[96][98][116] Closing Thoughts This section summarizes Burford's key achievements, including portfolio growth, YPF-related progress, and strong capital access, reinforcing its competitive position Key Takeaways Key takeaways include 71% YTD25 new definitive commitment growth, tangible progress in YPF-related assets, and strong capital access via a $500 million oversubscribed debt issuance - New definitive commitments of $518 million in YTD25, up 71% from YTD24, and portfolio base up 15% in YTD25[100] - Tangible progress in YPF-related assets, including a favorable ruling on enforcement motion for turnover of YPF shares, with the main appeal tentatively set for October 27, 2025[100] - $500 million debt issuance in July 2025 allows for extending near-term maturities, with the deal being over-subscribed and favorably priced[100] Financial Reconciliations and Glossary This section provides detailed financial reconciliations for consolidated and non-GAAP measures, along with a comprehensive glossary of key financial and operational terms Consolidated Financial Statement Reconciliations This section provides detailed reconciliations of consolidated financial statements, breaking down revenues, expenses, and balance sheet items into consolidated, third-party, and Burford-only totals - Provides detailed reconciliations of consolidated financial statements, separating Burford-only figures from third-party interests[102][103][104] Statement of Operations - Three Months Ended June 30, 2025 and 2024 This table reconciles the consolidated statement of operations for the three months ended June 30, 2025 and 2024, showing Burford-only figures | ($ thousands) | Consolidated (2Q25) | Third-party interests (2Q25) | Total segments (Burford-only) (2Q25) | Consolidated (2Q24) | Third-party interests (2Q24) | Total segments (Burford-only) (2Q24) | | :------------------------------------------ | :------------------ | :--------------------------- | :----------------------------------- | :------------------ | :--------------------------- | :----------------------------------- | | Total revenues | 191,286 | (19,789) | 171,497 | 159,653 | (22,376) | 137,277 | | Total operating expenses | 49,065 | (2,953) | 46,112 | 38,151 | (849) | 37,302 | | Net income/(loss) | 105,153 | (16,857) | 88,296 | 75,272 | (21,526) | 53,746 | Statement of Operations - Six Months Ended June 30, 2025 and 2024 This table reconciles the consolidated statement of operations for the six months ended June 30, 2025 and 2024, showing Burford-only figures | ($ thousands) | Consolidated (YTD25) | Third-party interests (YTD25) | Total segments (Burford-only) (YTD25) | Consolidated (YTD24) | Third-party interests (YTD24) | Total segments (Burford-only) (YTD24) | | :------------------------------------------ | :------------------- | :---------------------------- | :------------------------------------ | :------------------- | :---------------------------- | :------------------------------------ | | Total revenues | 310,145 | (27,347) | 282,798 | 203,948 | (35,293) | 168,655 | | Total operating expenses | 90,166 | (4,531) | 85,635 | 68,289 | (1,323) | 66,966 | | Net income/(loss) | 142,063 | (22,838) | 119,225 | 57,774 | (33,965) | 23,809 | Statement of Financial Condition as of June 30, 2025 and December 31, 2024 This table reconciles the consolidated statement of financial condition as of June 30, 2025, and December 31, 2024, showing Burford-only figures | ($ thousands) | Consolidated (Jun 30, 2025) | Third-party interests (Jun 30, 2025) | Total segments (Burford-only) (Jun 30, 2025) | Consolidated (Dec 31, 2024) | Third-party interests (Dec 31, 2024) | Total segments (Burford-only) (Dec 31, 2024) | | :------------------------------------------ | :-------------------------- | :----------------------------------- | :------------------------------------------- | :-------------------------- | :----------------------------------- | :------------------------------------------- | | Total assets | 6,326,839 | (1,622,799) | 4,704,040 | 6,175,025 | (1,586,694) | 4,588,331 | | Capital provision assets | 5,544,683 | (1,733,413) | 3,811,270 | 5,243,917 | (1,672,693) | 3,571,224 | | Total liabilities | 3,098,431 | (897,427) | 2,201,004 | 2,918,190 | (749,291) | 2,168,899 | | Debt payable | 1,779,925 | - | 1,779,925 | 1,763,612 | - | 1,763,612 | | Total shareholders' equity | 3,228,408 | (725,372) | 2,503,036 | 3,256,835 | (837,403) | 2,419,432 | Other Reconciliations This section provides detailed reconciliations for various non-GAAP financial measures and key performance indicators, including cash receipts, deployments, and tangible book value per share - Provides detailed reconciliations for non-GAAP measures such as cash receipts, deployments, realizations, and tangible book value per share[107][109][110][113] - Includes specific reconciliations for YPF-related income and fair value, highlighting their impact on overall financial performance[119][120] Cash Receipts This table provides a reconciliation of Burford-only cash receipts for the periods presented | Metric ($ thousands) | YTD25 | YTD24 | 2Q25 | 2Q24 | | :------------------------------------------ | :------ | :------ | :----- | :----- | | Burford-only total proceeds from capital provision assets | 287,198 | 216,028 | 42,294 | 88,503 | | Burford-only proceeds from asset management income | 8,613 | 15,468 | 1,508 | 10,992 | | Cash receipts | 305,851 | 245,057 | 48,135 | 107,363 | - Cash receipts for YTD25 increased to $305.9 million from $245.1 million in YTD24[107] Principal Finance Deployments This table details Burford-only principal finance deployments for the periods presented | Metric ($ thousands) | YTD25 | YTD24 | 2Q25 | 2Q24 | | :------------------------------------------ | :------ | :------ | :----- | :----- | | Adjusted (Burford-only) deployments | 210,687 | 200,613 | 80,776 | 133,098 | | Adjusted (Burford-only) less: private funds | 210,531 | 190,826 | 80,704 | 131,746 | Principal Finance Realizations This table details Burford-only principal finance realizations for the periods presented | Metric ($ thousands) | YTD25 | YTD24 | 2Q25 | 2Q24 | | :------------------------------------------ | :------ | :------ | :----- | :----- | | Adjusted (Burford-only) realizations | 225,034 | 219,283 | 61,886 | 156,746 | | Adjusted (Burford-only) less: private funds | 206,953 | 215,738 | 58,090 | 154,664 | - Cumulative realizations from concluded or partially concluded assets since inception (Burford-only) reached $3,539 million as of June 30, 2025[111] Net Realized Gains/(losses) This table presents Burford-only net realized gains and losses for the Principal Finance segment | Metric ($ thousands) | YTD25 | YTD24 | 2Q25 | 2Q24 | | :------------------------------------------ | :------ | :------ | :----- | :----- | | Principal Finance | 61,176 | 129,047 | 26,592 | 99,153 | | Excluding private funds | 56,216 | 127,907 | 25,039 | 99,153 | Tangible Book Value Attributable to Burford Capital Limited per Ordinary Share This table reconciles the tangible book value per ordinary share attributable to Burford Capital Limited | Metric ($ thousands, except share data) | June 30, 2025 | December 31, 2024 | | :----------------------------------------- | :------------ | :---------------- | | Total Burford Capital Limited equity | 2,503,036 | 2,419,432 | | Tangible book value attributable to Burford Capital Limited | 2,368,999 | 2,285,484 | | Tangible book value attributable to Burford Capital Limited per ordinary share | 10.83 | 10.42 | Covenant Calculations This table presents key covenant calculations, including debt to tangible assets and equity ratios | Metric | Jun 30, 2025 (Actual) | Dec 31, 2024 | Jun 30, 2025 (Pro Forma) | | :------------------------------------------ | :-------------------- | :----------- | :----------------------- | | Consolidated net debt to consolidated tangible assets ratio | 22 % | 20 % | 20 % | | Consolidated Indebtedness to Net Tangible Equity Ratio | 0.7x | 0.8x | 0.9x | | Consolidated Indebtedness to Consolidated Equity Ratio | 0.7x | 0.7x | 0.8x | YPF-Related Income This table details Burford-only YPF-related income and its contribution to capital provision income | Metric ($ thousands) | YTD25 (Burford-only) | YTD24 (Burford-only) | 2Q25 (Burford-only) | 2Q24 (Burford-only) | | :------------------------------------------ | :------------------- | :------------------- | :------------------ | :------------------ | | Income on capital provision assets, excluding YPF | 109,749 | 114,001 | 60,951 | 104,042 | | Fair value adjustment (YPF-only) | 118,831 | 24,821 | 82,280 | 13,974 | | Total capital provision income | 246,360 | 137,263 | 155,410 | 119,360 | YPF-Related Fair Value This table presents the Burford-only fair value of YPF-related assets, including deployed costs and unrealized gains | Metric ($ thousands) | Jun 30, 2025 (Burford-only) | Dec 31, 2024 (Burford-only) | | :------------------------------------------ | :-------------------------- | :-------------------------- | | Capital provision assets | 3,811,270 | 3,571,224 | | Deployed costs on YPF-related assets | 107,927 | 69,576 | | Unrealized gains on YPF-related assets | 1,514,730 | 1,395,899 | Asset Management Income This table breaks down Burford-only asset management income by type for the periods presented | Metric ($ thousands) | YTD25 (Burford-only) | YTD24 (Burford-only) | 2Q25 (Burford-only) | 2Q24 (Burford-only) | | :------------------------------------------ | :------------------- | :------------------- | :------------------ | :------------------ | | Management fee income | 4,400 | 3,507 | 1,349 | 1,644 | | Performance fee income | 13,662 | - | - | - | | Profit sharing income from funds | 20,949 | 14,653 | 5,763 | 9,843 | | Total asset management income | 20,949 | 18,160 | 7,112 | 11,487 | Undrawn Commitments This table details Burford-only undrawn commitments, categorized by definitive, discretionary, and legal risk | Metric ($ thousands) | Jun 30, 2025 (Burford-only) | Dec 31, 2024 (Burford-only) | | :------------------------------------------ | :-------------------------- | :-------------------------- | | Definitive | 1,065,183 | 773,673 | | Discretionary | 642,448 | 817,865 | | Legal risk (definitive) | 46,399 | 41,318 | | Total capital provision undrawn commitments | 1,754,030 | 1,632,856 | Capital Provision Income This table reconciles Burford-only capital provision income, including realized gains and fair value adjustments | Metric ($ thousands) | YTD25 (Burford-only) | YTD24 (Burford-only) | 2Q25 (Burford-only) | 2Q24 (Burford-only) | | :------------------------------------------ | :------------------- | :------------------- | :------------------ | :------------------ | | Net realized gains/ (losses) | 61,176 | 129,047 | 26,592 | 99,153 | | Fair value adjustment | 167,404 | 9,775 | 116,639 | 18,863 | | Income/(loss) on capital provision assets | 228,580 | 138,822 | 143,231 | 118,016 | | Total capital provision income | 355,680 | 198,506 | 224,164 | 157,745 | Glossary This section defines key financial and operational terms specific to Burford Capital's legal finance and asset management business - Defines "Burford-only" as a basis of presentation excluding third-party interests and private funds[126] - Explains "Capital provision assets" as financial instruments for legal finance and "Cash receipts" as cash generated from capital provision and other assets[127][128] - Defines "Realization" as when a legal finance asset is concluded and "ROIC" as return on invested capital, a measure of absolute returns[138][139]