Burford Capital Reports Third Quarter 2024 Results

Financial Performance - The company generated $556 million in Burford-only cash receipts year-to-date (YTD) in 2024, with $310 million in the third quarter (3Q) of 2024, setting new records [2] - Core portfolio net realized gains reached $184 million YTD in 2024, up 49% compared to YTD 2023, and $56 million in 3Q 2024, nearly double the levels of 3Q 2023 and 3Q 2022 [2] - Burford-only net income attributable to shareholders was $136 million in 3Q 2024, with tangible book value exceeding $10 per share for the first time [2] - Total revenues for 3Q 2024 were $249.1 million, a 32% decrease compared to 3Q 2023, while total operating expenses decreased by 12% to $46.9 million [3] - Net income attributable to shareholders for 3Q 2024 was $135.6 million, a 50% decrease compared to 3Q 2023 [3] Portfolio and Realizations - Core portfolio realizations reached $380 million YTD in 2024, up 39% compared to YTD 2023, with 40 assets diversified across various sectors [6] - Ten assets generated more than $10 million in realizations YTD in 2024, with five assets delivering $20 million or more [6] - The return on invested capital (ROIC) for YTD 2024 realizations was 94%, above the historical track record [6] - New commitments in 3Q 2024 increased significantly, with $443 million in core portfolio new commitments and $263 million in deployments YTD in 2024 [6] Liquidity and Capital - The company's liquidity position strengthened, with Burford-only cash and cash equivalents and marketable securities totaling $629 million at the end of 3Q 2024, up from $303 million at the end of 2023 [10] - Total debt outstanding increased to $1.8 billion at the end of 3Q 2024, compared to $1.6 billion at the end of 2023, but leverage remains well below covenant ceiling levels [11] Operational Highlights - The company's core portfolio net realized gains of $184 million YTD in 2024 are already in line with the previous annual peak of $186 million achieved in 2023 [6] - Burford-only capital provision income in 3Q 2024 was $205 million, driven by positive impacts across major valuation inputs such as discount rates, case milestones, and duration [8] - Excluding YPF-related assets, Burford-only total net realized and unrealized gains increased by 200% in 3Q 2024 and 17% YTD in 2024 compared to the same periods in 2023 [8] Industry and Market Context - The company continues to clear the pandemic-driven backlog, with about half of the capital provision assets generating realizations YTD in 2024 being from 2020 and prior vintages [6] - Definitive undrawn commitments at the end of 3Q 2024 were $727 million, up 25% YTD in 2024, supporting future deployment activity [6]