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Burford Capital Reports Record 2023 Results

March 14, 2024
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NEW YORK, March 14, 2024 - Burford Capital Limited (“Burford”), the leading global finance and asset management firm focused on law, today announces its fourth quarter and full year 2023 results.

In addition, Burford has made available an accompanying fourth quarter and full year 2023 results presentation, a shareholder letter and capital provision-direct and capital provision-indirect asset data tables on its website at http://investors.burfordcapital.com.

Christopher Bogart, Chief Executive Officer of Burford Capital, commented: “Burford had an extraordinary year. Our earnings per share rose 19x to $2.74, driven by a tripling of consolidated total revenues to $1.1 billion in 2023 due to significant growth in capital provision income, with and without our YPF-related assets. We achieved a Burford-only net income margin of 63%. With the courts fully back in business, we had an active year and we anticipate further substantial levels of activity in 2024 and 2025. Increased portfolio velocity was reflected in record core legal finance realizations, cash receipts and realized gains, as well as sizeable unrealized gains arising from the portfolio moving forward. Our ROTE soared to 32% in 2023 from 2% in 2022, and we increased tangible book value by 34% to $9.85.”

Consolidated financial results (unaudited)

Summary statements of operations

 

Years ended

December 31,

 

Three months ended

December 31,

Consolidated (US GAAP)

($ in thousands, except per share data)

2023

2022

% change

 

2023

2022

% change

Capital provision income

1,341,923

319,108

321%

 

325,810

165,942

96%

Asset management income

7,642

9,116

-16%

 

1,875

2,025

-7%

Total revenues

1,086,902

319,227

240%

 

292,573

161,336

81%

Operating expenses

271,236

124,272

118%

 

120,237

42,126

185%

Net income/(loss) attributable to Burford Capital Limited shareholders

610,522

30,506

1,901%

 

100,095

81,914

22%

 

Per diluted ordinary share

2.74

0.14

1,857%

 

0.45

0.37

22%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Summary statements of financial position

Consolidated (US GAAP)

($ in thousands, except per share data)

December 31, 2023

December 31, 2022

% change

Capital provision assets

5,045,388

3,735,556

35%

Total Burford Capital Limited equity

2,290,858

1,742,584

31%

 

Book value per ordinary share

10.46

7.97

31%

Non-controlling interests

916,922

644,486

42%

Total shareholders’ equity

3,207,780

2,387,070

34%

Total liabilities and shareholders’ equity

5,837,394

4,288,359

36%

 

 

 

 

 

 

 

 

 

 

In this announcement, references to “FY23”and “FY22” are to Burford’s financial results for the years ended December 31, 2023 and 2022, respectively. All figures in this announcement are presented on a preliminary and unaudited consolidated basis in accordance with the generally accepted accounting principles in the United States (“US GAAP”), unless otherwise stated. Definitions, reconciliations and information additional to those set forth in this announcement are available on Burford’s website at http://investors.burfordcapital.com.

 

Burford-only operational and financial review (non-GAAP)

Selected metrics1

 

Years ended December 31,

 

Three months ended December 31,

Burford-only (non-GAAP)

($ in thousands)

2023

2022

% change

 

2023

2022

% change

Realized gains

186,443

133,357

40%

 

62,904

70,487

-11%

Realizations

496,216

350,209

42%

 

222,115

157,729

41%

Cash receipts2

489,209

327,986

49%

 

109,477

98,514

11%

Deployments

382,195

457,106

-16%

 

77,763

181,687

-57%

New commitments

691,086

726,273

-5%

 

242,404

325,705

-26%

1 Represents Burford-only capital provision-direct, unless noted otherwise.

2 Represents Burford-only proceeds from capital provision-direct, capital provision-indirect and asset management and other services.

 

Group-wide (non-GAAP)

($ in thousands)

December 31, 2023

December 31, 2022

% change

Total portfolio

7,170,308

6,146,871

17%

 

 

 

 

 

  • Realized gains in FY23 up 40% to $186 million from the prior year (FY22: $133 million), with no contribution from the YPF-related assets
  • Realizations in FY23 up 42% to $496 million (FY22: $350 million)
    • Continued strength in realizations in FY23 reflects increased portfolio velocity, as the case backlog in the courts continues to clear
  • Cash receipts in FY23 up 49% to $489 million (FY22: $328 million)
    • Cash receipts in FY23 meaningfully exceeded total operating expenses and finance costs
  • Deployments in FY23 down 16% to $382 million (FY22: $457 million)
    • Current vintage year Burford-only capital provision-direct deployments were ~40% of 2023 total compared to ~60% in 2022 – this is simply a business mix variation as 2022 had more monetizations and the rapid settlement of a large 2023 matter, producing 37% IRR, meant there was a $100 million of available commitment not deployed
  • New commitments in FY23 up 4% to $1.2 billion on a group-wide basis (FY22: $1.2 billion)
    • However, capital provision-direct new commitments on Burford-only basis down 5% to $691 million as BOF-C took a larger share of new commitments (FY22: $726 million)
  • Group-wide total portfolio increased 17% to $7.2 billion at December 31, 2023 (December 31, 2022: $6.1 billion), due to significant fair value gains and growth in deployments and undrawn commitments

Selected financial metrics

 

Years ended

December 31,

 

Three months ended

December 31,

Burford-only (non-GAAP)

($ in thousands, except per share data)

2023

2022

% change

 

2023

2022

% change

Total revenues

976,542

250,605

290%

 

250,615

143,173

75%

Operating expenses

268,538

122,696

119%

 

118,161

41,751

183%

Operating income/(loss)

708,004

127,909

454%

 

132,454

101,422

31%

Net income/(loss)

610,522

30,506

1901%

 

100,095

81,914

22%


 

 

 

 

 

 

 

 

Burford-only (non-GAAP)

($ in thousands, except per share data)

December 31, 2023

December 31, 2022

$ change

% change

Tangible book value attributable to Burford Capital Limited

2,156,893

1,608,672

548,221

34%

 

Tangible book value attributable to Burford Capital Limited per ordinary share

9.85

7.36

2.49

34%

 

 

 

 

 

 

  • Total revenues in FY23 of $977 million (FY22: $251 million) were a driver of significant earnings growth
    • Realized gains on total capital provision assets of $187 million in FY23 driven by capital provision-direct assets, representing our highest returning core legal finance strategy
    • Unrealized gains, excluding YPF-related assets, on capital provision assets increased 120% in FY23 to $158 million (FY22: $72 million), due to portfolio progress
    • YPF-related assets generated $543 million of unrealized gains in FY23, due mainly to favorable summary judgment in the first quarter of 2023 and favorable final judgment in the third quarter of 2023
  • Operating income in FY23 of $708 million (FY22: $128 million), attributable principally to growth of 290% in total revenues
    • Operating expenses in FY23 of $269 million (FY22: $123 million), reflecting strong portfolio performance
      • Total operating expenses in 2023 include almost $130 million of non-cash accruals and one-time or case expenses
    • Strong revenue growth caused total operating expenses (including all non-cash accruals) as a percentage of total revenues to decline to 27% in 2023 from 49% in 2022
    • Increase in portfolio value, including unrealized gains on the YPF-related assets, drove increase in accrued compensation expense associated with carried interest 
      • Long-term incentive compensation includes accrued expenses and related employee benefits and are only paid out upon receipt of cash proceeds from net realized gains of capital provision assets
  • Net income in FY23 of $611 million (FY22: $31 million) amounted to 63% of total revenues
    • Net income per diluted share in FY23 of $2.74 (FY22: $0.14 per diluted share)
  • Tangible book value attributable to Burford Capital Limited of $2.2 billion at December 31, 2023 (December 31, 2022: $1.6 billion)
    • Tangible book value attributable to Burford Capital Limited per ordinary share increased 34% to $9.85 at December 31, 2023 (December 31, 2022: $7.36), primarily reflecting strong earnings
  • Burford-only ROTE for FY23 of 32% (FY22: 2%)

Selected portfolio metrics

Burford-only

($ in thousands)

December 31, 2023

December 31, 2022

$ change

% change

Deployed cost

1,573,531

1,486,150

87,381

6%

Plus: Fair value adjustments

1,814,070

1,117,855

696,215

62%

Fair value

3,387,601

2,604,005

783,596

30%

Undrawn commitments

1,396,061

1,299,048

97,013

7%

Total capital provision-direct portfolio

4,783,662

3,903,053

880,609

23%

Total capital provision portfolio1

4,840,117

3,942,7002

897,417

23%

1 Represents capital provision-direct and capital provision-indirect.

2 The fair value of $31.4 million for the Burford-only capital provision-indirect assets did not include an additional $1.0 million for the Burford-only portion of the receivable from due from settlement of capital provision assets on concluded assets in the Strategic Value Fund for a total fair value of $32.4 million for Burford-only capital provision-indirect assets.

 

  • Fair value of Burford-only capital provision-direct assets increased by $784 million to $3.4 billion at December 31, 2023 (December 31, 2022: $2.6 billion)
  • Of the $784 million increase in capital provision-direct asset fair value in FY23, $549 million attributable to the YPF-related assets
  • Cumulative ROIC since inception from Burford-only capital provision-direct assets of 82% (December 31, 2022: 88%) and IRR of 27% (December 31, 2022: 29%)

Liquidity and capital

 

 

 

 

 

Burford-only (non-GAAP)

($ in thousands)

December 31, 2023

December 31, 2022

$ change

% change

Liquidity

 

 

 

 

 

Cash and cash equivalents

195,915

73,679

122,236

166%

 

Marketable securities

107,561

136,358

(28,797)

-21%

 

Total liquidity

303,476

210,037

93,439

44%

Due from settlement of capital provision assets

185,267

114,650

70,617

62%

 

 

 

 

 

  • Burford-only cash and cash equivalents and marketable securities of $303 million at December 31, 2023 (December 31, 2022: $210 million)
    • Robust liquidity position at December 31, 2023 primarily reflects continued solid Burford-only cash receipts and issuance in June 2023 of $400 million of senior notes due 2031
    • Liquidity position enhanced in January 2024 by $275 million tack-on offering of senior notes originally issued in June 2023
  • Burford-only due from settlement of capital provision assets of $185 million at December 31, 2023 (December 31, 2022: $115 million)
  • Total debt outstanding of $1.6 billion at December 31, 2023 (December 31, 2022: $1.3 billion)
    • Leverage decreased in FY23, primarily driven by asset and equity growth and remains well below covenant ceiling levels
    • In June 2023, Moody’s revised its outlook on its Ba2 rating to positive from stable
    • In October 2023, S&P revised its outlook on its BB- rating to positive from stable
  • Declared dividend of 6.25¢ per ordinary share payable, subject to shareholder approval at the annual general meeting to be held in May 2024, on June 14, 2024 to shareholders of record on May 24, 2024, with an ex-dividend date of May 23, 2024

SEC Reporting

We anticipate filing our annual report on Form 20-F with the US Securities and Exchange Commission within the next 30 days. We expect that to be our last filing on Form 20-F, used by foreign private issuers. Even if we do not lose foreign private issuer status by having more than 50% US investors on June 30, 2024, we nevertheless intend to move to reporting as a full US issuer and using Form 10-K for the 2024 fiscal year.

In our forthcoming Form 20-F, we will be reporting a material weakness in our internal control over financial reporting and that our disclosure controls and procedures were not effective in the aftermath of the adoption of our new valuation policy. That material weakness and corresponding controls’ determinations relate to the lack of documented available evidence demonstrating the precision of management’s application of the process to determine certain assumptions used in the measurement of the fair value of capital provision assets. To be clear, this is an issue of internal documentation of a management process; no material accounting errors were identified as a result.

Investor and analyst conference call

Burford will hold a conference call for investors and analysts at 8.00am EDT / 12.00pm GMT on Thursday, March 14, 2024. The dial-in numbers for the conference call are +1 646 307-1963 (USA) or +1 800 715-9871 (USA & Canada toll free) / +44 (0)20 3481 4247 (UK) or +44 800 260 6466 (UK toll free) and the access code is 9722470. To minimize the risk of delayed access, participants are urged to dial into the conference call by 7.40am EDT / 11.40am GMT.

A live webcast of the call will also be available at https://events.q4inc.com/attendee/461322893, and pre-registration at that link is encouraged.

An accompanying FY23 and 4Q23 results presentation for investors and analysts will also be made available on Burford’s website prior to the conference call at http://investors.burfordcapital.com.

Following the conference call, a replay facility for this event will be accessible through the webcast at https://events.q4inc.com/attendee/461322893.

 

For further information, please contact

Burford Capital Limited

For investor and analyst inquiries:

 

Robert Bailhache, Head of Investor Relations, EMEA and Asia - email

+44 (0)20 3530 2023

Jim Ballan, Head of Investor Relations, Americas - email

 

+1 (646) 793 9176

For press inquiries:

 

David Helfenbein, Vice President, Public Relations - email

 

+1 (212) 235 6824

Deutsche Numis - NOMAD and Joint Broker

Giles Rolls
Charlie Farquhar

 

+44 (0)20 7260 1000

Jefferies International Limited - Joint Broker

Graham Davidson
James Umbers

 

+44 (0)20 7029 8000

Berenberg - Joint Broker

Toby Flaux
James Thompson
Yasmina Benchekroun

+44 (0)20 3207 7800

About Burford Capital

Burford Capital is the leading global finance and asset management firm focused on law. Its businesses include litigation finance and risk management, asset recovery and a wide range of legal finance and advisory activities. Burford is publicly traded on the New York Stock Exchange (NYSE: BUR) and the London Stock Exchange (LSE: BUR), and it works with companies and law firms around the world from its offices in New York, London, Chicago, Washington, DC, Singapore, Dubai, Sydney and Hong Kong.

For more information, please visit www.burfordcapital.com.

 

Summary financial statements and reconciliations

The tables below set forth summaries of the consolidated and Burford-only statements of operations for the years ended December 31, 2023 and 2022 and the three months ended December 31, 2023 and 2022, the consolidated and Burford-only statements of financial position at December 31, 2023 and 2022 and corresponding reconciliations from consolidated to Burford-only financial results. Furthermore, the tables below set forth certain additional reconciliations for financial information contained in this announcement.

Summary consolidated statements of operations

Summary consolidated statements of operations

 

 

Years ended

December 31,

 

Three months ended

December 31,

($ in thousands)

 

2023

 

2022

 

2023

 

2022

Revenues

 

 

 

 

 

 

 

 

Capital provision income/(loss)

 

 1,341,923

 

 319,108

 

325,810

 

165,942

(Less)/Plus: Third-party interests in capital

provision assets

 

 (279,263)

 

 (494)

 

(43,319)

 

(12,622)

Asset management income

 

 7,642

 

 9,116

 

1,875

 

2,025

Services and other income/(loss)

 

16,600

 

(8,503)

 

8,207

 

5,991

   Total revenues

 

 1,086,902

 

 319,227

 

292,573

 

161,336

 

 

 

 

 

 

 

 

 

Total operating expenses

 

 271,236

 

 124,272

 

120,237

 

42,126

 

 

 

 

 

 

 

 

 

Operating income/(loss)

 

 815,666

 

 194,955

 

172,336

 

119,210

 

 

 

 

 

 

 

 

 

Finance costs and loss on debt extinguishment

 

99,135

 

78,264

 

28,445

 

20,452

Foreign currency transactions (gains)/losses

 

(21,752)

 

7,674

 

603

 

(1,712)

 

 

 

 

 

 

 

 

 

Income/(loss) before income taxes

 

 738,283

 

 109,017

 

144,494

 

100,470

 

 

 

 

 

 

 

 

 

Benefit from/(provision for) income taxes

 

 (20,084)

 

 (11,558)

 

(4,534)

 

(754)

Net income/(loss)

 

 718,199

 

 97,459

 

139,960

 

99,716

 

 

 

 

 

 

 

 

 

Net income/(loss) attributable to Burford Capital Limited shareholders

 

 610,522

 

 30,506

 

100,095

 

81,914

 

 

 

 

 

 

 

 

 

Net income/(loss) attributable to Burford Capital Limited shareholders per ordinary share

 

 

 

 

 

 

 

 

Basic

 

 $2.79

 

 $0.14

 

$0.46

 

$0.37

Diluted

 

 $2.74

 

 $0.14

 

 $0.45

 

$0.37

 

Summary Burford-only statement of operations

 

 

Years ended

December 31,

Three months ended

December 31, 

($ in thousands)

 

2023

 

2022

 

2023

 

2022

Revenues

 

 

 

 

 

 

 

 

Capital provision income

 

896,371

 

202,878

 

219,969

 

122,436

Asset management income

 

63,712

 

56,080

 

22,530

 

14,758

Services and other income

 

16,459

 

(8,353)

 

8,116

 

5,979

   Total revenues

 

976,542

 

250,605

 

250,615

 

143,173

 

 

 

 

 

 

 

 

 

Operating expenses

 

268,538

 

122,696

 

118,161

 

41,751

 

 

 

 

 

 

 

 

 

Operating income

 

708,004

 

127,909

 

132,454

 

101,422

 

 

 

 

 

 

 

 

 

Net income

 

610,522

 

30,506

 

100,095

 

81,914

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

Basic

 

 $2.79

 

 $0.14

 

 $0.46

 

 $0.37

Diluted

 

 $2.74

 

 $0.14

 

 $0.45

 

 $0.37

 

Reconciliation of summary consolidated statement of operations to summary Burford-only statement of operations

 

Year ended December 31, 2023

 

 

(GAAP)

(Non-GAAP)

 

   

Elimination of third-party interests

 

 

($ in thousands)

Consolidated

Strategic Value Fund

BOF-C

Colorado

Advantage Fund

Other

Burford-only

Capital provision income

1,341,923

(1,073)

(132,094)

(277,102)

(31,385)

(3,898)

896,371

(Less): Third-party interests in capital provision assets

(279,263)

-

-

277,030

-

2,233

-

Asset management income

7,642

108

55,962

-

-

-

63,712

Services and other income

16,600

(2)

(76)

-

-

(63)

16,459

   Total revenues

1,086,902

(967)

(76,208)

(72)

(31,385)

(1,728)

976,542

 

 

 

 

 

 

 

 

Operating expenses

271,236

(965)

369

(72)

(411)

(1,619)

268,538

 

 

 

 

 

 

 

 

Operating income

815,666

(2)

(76,577)

-

(30,974)

(109)

708,004

 

 

 

 

 

 

 

 

Net income/(loss)

718,199

(2)

(76,577)

-

(30,974)

(124)

610,522

                   

 

 

 

 

 

               
 

Year ended December 31, 2022

 

(GAAP)

(Non-GAAP)

   

Elimination of third-party interests

 

($ in thousands)

Consolidated

Strategic Value Fund

BOF-C

Colorado

Advantage Fund

Other

Burford-only

Capital provision income

391,108

3,709

(112,370)

661

(1,417)

(6,813)

202,878

(Less): Third-party interests in capital provision assets

(494)

-

-

(693)

-

1,187

-

Asset management income

9,116

312

46,652

-

-

-

56,080

Services and other income

(8,503)

184

(3)

-

-

(31)

(8,353)

   Total revenues

319,227

4,205

(65,721)

(32)

(1,417)

(5,657)

250,605

 

 

 

 

 

 

 

 

Operating expenses

124,272

(995)

136

(32)

(498)

(187)

122,696

 

 

 

 

 

 

 

 

Operating income

194,955

5,200

(65,857)

-

(919)

(5,470)

127,909

 

 

 

 

 

 

 

 

Net income/(loss)

97,459

5,200

(65,857)

-

(919)

(5,377)

30,506

                 

 

 

 

Three months December 31, 2023

 

 

(GAAP)

(Non-GAAP)

 

   

Elimination of third-party interests

 

 

($ in thousands)

Consolidated

Strategic Value Fund

BOF-C

Colorado

Advantage Fund

Other

Burford-only

Capital provision income

325,810

(21)

(47,665)

(41,371)

(11,012)

(5,772)

219,969

(Less): Third-party interests in capital provision assets

(43,319)

-

-

41,320

-

1,999

-

Asset management income

1,875

-

20,655

-

-

-

22,530

Services and other income

8,207

(1)

(71)

-

-

(19)

8,116

   Total revenues

292,573

(22)

(27,081)

(51)

(11,012)

(3,792)

250,615

 

 

 

 

 

 

 

 

Operating expenses

120,237

(32)

79

(51)

(132)

(1,940)

118,161

 

 

 

 

 

 

 

 

Operating income

172,336

10

(27,160)

-

(10,880)

(1,852)

132,454

 

 

 

 

 

 

 

 

Net income/(loss)

139,960

10

(27,610)

-

(10,880)

(1,835)

100,095

                   
               
 

Three months ended December 31, 2022

 

 

(GAAP)

(Non-GAAP)

 

   

Elimination of third-party interests

 

 

($ in thousands)

Consolidated

Strategic Value Fund

BOF-C

Colorado

Advantage Fund

Other

Burford-only

Capital provision income

165,942

(152)

(27,105)

(11,907)

(1,194)

(3,148)

122,436

(Less): Third-party interests in capital provision assets

(12,622)

-

-

11,877

-

745

-

Asset management income

2,025

46

12,687

-

-

-

14,758

Services and other income

5,991

1

(3)

-

-

(10)

5,979

   Total revenues

161,336

(105)

(14,421)

(30)

(1,194)

(2,413)

143,173

 

 

 

 

 

 

 

 

Operating expenses

42,126

(183)

27

(30)

(145)

(44)

41,751

 

 

 

 

 

 

 

 

Operating income

119,210

78

(14,448)

-

(1,049)

(2,369)

101,422

 

 

 

 

 

 

 

 

Net income/(loss)

99,716

78

(14,449)

-

(1,049)

(2,382)

81,914

                   

 

Reconciliation of consolidated capital provision income excluding YPF-related assets

 

 

 

 

 

($ in thousands)

 

Year ended

December 31, 2023

 

Three months ended

December 31, 2023

Capital provision income

 

1,341,923

 

325,810

Less: Capital provision income from YPF-related assets

 

820,011

 

124,773

Capital provision income excluding YPF-related assets

 

521,912

 

201,037

 

Reconciliations of operating expenses from the consolidated statements of operations to Burford-only statements of operations

 

 

 

 

 

 

 

 

    

Year ended December 31, 2023

 

 

(GAAP)

 

(non-GAAP)

 

 

 

 

Eliminations and

 

 

($ in millions)

 

Consolidated

 

adjustments

 

 Burford-only 

Operating expenses

 

 271.2

 

 (2.7)

 

 268.5

Non-cash accruals and one-time or case expenses:

 

 

 

 

 

 

Long-term incentive compensation including accruals (YPF-related assets)

 

 69.2

 

 -

 

 69.2

Long-term incentive compensation including accruals (CEO and CIO related)

 

 16.9

 

 -

 

 16.9

Case-related expenditures ineligible for inclusion in asset cost

 

 16.5

 

 (1.8)

 

 14.7

Legacy asset recovery incentive compensation including accruals

 

 17.3

 

 -

 

 17.3

Expenses related to audit, professional and corporate legal fees due to the development of the revised fair value methodology and build-out of quarterly reporting

 

 3.3

 

 -

 

 3.3

Deferred compensation plan and retirement plan

 

 7.4

 

 -

 

 7.4

Total

 

 130.6

 

 (1.8)

 

 128.8

 

Summary consolidated statement of financial position

 

 

 

 

 

($ in thousands)

 

 December 31,

2023

 

 December 31, 2022

 

 

 

 

 

Total assets

 

5,837,394

 

4,288,359

 

 

 

 

 

Total liabilities

 

2,629,614

 

1,901,289

 

 

 

 

 

Total Burford Capital Limited equity

 

2,290,858

 

1,742,584

 

 

 

 

 

Non-controlling interests

 

916,922

 

644,486

 

 

 

 

 

Total shareholders’ equity

 

3,207,780

 

2,387,070

 

 

 

 

 

Basic ordinary shares outstanding

 

218,962,441

 

218,581,877

 

 

 

 

 

Total shareholders’ equity attributable to Burford Capital Limited per basic ordinary share

 

10.46

 

7.97

Total shareholders’ equity per basic ordinary share

 

14.65

 

10.92

 

Reconciliation of summary consolidated statement of financial position to summary Burford-only statement of financial position

               
 

December 31, 2023

 

(GAAP)

(Non-GAAP)

   

Elimination of third-party interests

 

($ in thousands)

Consolidated

Strategic Value Fund

BOF-C

Colorado

Advantage Fund

Other

Burford-only

               

Total assets

5,837,394

-

(634,239)

(686,304)

(222,413)

(78,574)

4,215,864

 

 

 

 

 

 

 

 

Total liabilities

2,629,614

-

-

(686,304)

(100)

(18,204)

1,925,006

 

 

 

 

 

 

 

 

Total shareholders' equity

3,207,780

-

(634,239)

-

(222,313)

(60,370)

2,290,858

 

 

               
 

December 31, 2022

 

(GAAP)

(Non-GAAP)

   

Elimination of third-party interests

 

($ in thousands)

Consolidated

Strategic Value Fund

BOF-C

Colorado

Advantage Fund

Other

Burford-only

               

Total assets

4,288,359

(2,779)

(477,590)

(409,249)

(103,523)

(76,792)

3,218,426

 

 

 

 

 

 

 

 

Total liabilities

1,901,289

(228)

(4,234)

(409,249)

(120)

(11,616)

1,475,842

 

 

 

 

 

 

 

 

Total shareholders' equity

2,387,070

(2,551)

(473,356)

-

(103,403)

(65,176)

1,742,584

 

Reconciliation of components of realizations from a consolidated basis to a Group-wide basis

 

Year ended December 31, 2023

 

(GAAP)

 

(Non-GAAP)

($ in thousands)

Consolidated

 

Eliminations and adjustments

 Burford-only 

Other funds

 BOF-C 

Group-wide

Capital provision-direct

564,491

 

(68,275)

496,216

112,188

124,409

732,813

Capital provision-indirect

143,802

 

(109,392)

34,410

109,078

-

143,488

Post-settlement

-

 

-

-

241,490

-

241,490

Total realizations

708,293

 

(177,667)

530,626

462,756

124,409

1,117,791

 

 

Year ended December 31, 2022

 

(GAAP)

 

(Non-GAAP)

($ in thousands)

Consolidated

 

Eliminations and adjustments

 Burford-only 

Other funds

 BOF-C 

Group-wide

Capital provision-direct

402,196

 

(51,987)

350,209

174,707

65,988

590,904

Capital provision-indirect

24,538

 

(14,216)

10,322

28,746

-

39,068

Post-settlement

-

 

-

-

104,637

-

104,637

Total realizations

426,734

 

(66,203)

360,531

308,090

65,988

734,609

 

(

             
 

Three months ended December 31, 2023

 

(GAAP)

 

(Non-GAAP)

($ in thousands)

Consolidated

 

Eliminations and adjustments

 Burford-only 

Other funds

 BOF-C 

Group-wide

Capital provision-direct

229,077

 

(6,962)

222,115

22,273

59,415

303,803

Capital provision-indirect

84,583

 

(70,075)

14,508

70,076

-

84,584

Post-settlement

-

 

-

-

123,183

-

123,183

Total realizations

313,660

 

(77,037)

236,623

215,532

59,415

511,570

 

 

               

 

Three months ended December 31, 2022

 

(GAAP)

 

(Non-GAAP)

($ in thousands)

Consolidated

 

Eliminations and adjustments

 Burford-only 

Other funds

 BOF-C 

Group-wide

Capital provision-direct

165,992

 

(8,263)

157,729

71,871

16,445

246,045

Capital provision-indirect

3,727

 

(3,091)

636

2,997

-

3,633

Post-settlement

-

 

-

-

54,188

-

54,188

Total realizations

169,719

 

(11,354)

158,365

129,056

16,445

303,866

 

Reconciliation of components of deployments from a consolidated basis to a Group-wide basis

 

Year ended December 31, 2023

 

(GAAP)

 

(Non-GAAP)

($ in thousands)

Consolidated

 

Eliminations and adjustments

 Burford-only 

Other funds

 BOF-C 

Group-wide

Capital provision-direct

505,893

 

(123,698)

382,195

25,679

122,352

530,226

Capital provision-indirect

176,134

 

(146,778)

29,356

146,778

-

176,134

Post-settlement

-

 

-

-

85,397

-

85,397

Total deployments

682,027

 

(270,476)

411,551

257,854

122,352

791,757

 

 

Year ended December 31, 2022

 

(GAAP)

 

(Non-GAAP)

($ in thousands)

Consolidated

 

Eliminations and adjustments

 Burford-only 

Other funds

 BOF-C 

Group-wide

Capital provision-direct

605,402

 

(148,296)

457,106

30,574

147,976

635,656

Capital provision-indirect

121,896

 

(101,573)

20,323

101,158

-

121,481

Post-settlement

-

 

-

-

170,689

-

170,689

Total deployments

727,298

 

(249,869)

477,429

302,421

147,976

927,826

 

 

Three months ended December 31, 2023

 

(GAAP)

 

(Non-GAAP)

($ in thousands)

Consolidated

 

Eliminations and adjustments

 Burford-only 

Other funds

 BOF-C 

Group-wide

Capital provision-direct

104,678

 

(26,915)

77,763

8,317

24,577

110,657

Capital provision-indirect

31,083

 

(25,902)

5,181

25,902

-

31,083

Post-settlement

-

 

-

-

42,125

-

42,125

Total deployments

135,761

 

(52,817)

82,944

76,344

24,577

183,865

 

 

Three months ended December 31, 2022

 

(GAAP)

 

(Non-GAAP)

($ in thousands)

Consolidated

 

Eliminations and adjustments

 Burford-only 

Other funds

 BOF-C 

Group-wide

Capital provision-direct

223,920

 

(42,233)

181,687

9,630

42,517

233,834

Capital provision-indirect

92,067

 

(76,874)

15,193

75,960

-

91,153

Post-settlement

-

 

-

-

120,118

-

120,118

Total deployments

315,987

 

(119,107)

196,880

205,708

42,517

445,105

 

 

Reconciliation of consolidated proceeds from capital provision assets to Burford-only cash receipts

 

 

   

($ in thousands)

 

Year ended December 31, 2023

Year ended December 31, 2022

Consolidated proceeds from capital provision assets

 

 559,362

 387,786

Less: Elimination of third-party interests

 

 (117,296)

 (81,857)

Burford-only total proceeds from capital provision assets

 

 442,066

 305,929

Burford-only proceeds from capital provision-direct assets

 

 414,726

 295,636

Burford-only proceeds from capital provision-indirect assets

 

 27,340

 10,293

Burford-only total proceeds from capital provision assets

 

 442,066

 305,929

Consolidated asset management income

 

 7,642

 9,116

Plus: Eliminated income from funds

 

 56,070

 46,964

Burford-only asset management income

 

 63,712

 56,080

Less: Non-cash adjustments(1)

 

 (31,391)

 (41,321)

Burford-only proceeds from asset management income

 

 32,321

 14,759

Burford-only proceeds from marketable security interest and dividends

 

 6,297

 3,585

Burford-only proceeds from other income

 

 7,875

 3,713

Burford-only proceeds from non-recurring items

 

650

-

Burford-only proceeds from other items

 

 14,822

 7,298

Cash receipts

 

 489,209

 327,986

 

(1) Adjustments for the change in asset management receivables accrued during the applicable period but not yet received at the end of such period.

 

 

 

   

($ in thousands)

 

Three months ended December 31, 2023

Three months ended December 31, 2022

Consolidated proceeds from capital provision assets

 

                   119,208

                   105,464

Less: Elimination of third-party interests

 

                    (22,709)

                   (11,720)

Burford-only total proceeds from capital provision assets

 

                    96,499

                    93,744

Burford-only proceeds from capital provision-direct assets

 

                     95,490

                     93,137

Burford-only proceeds from capital provision-indirect assets

 

                       1,009

                          607

Burford-only total proceeds from capital provision assets

 

                    96,499

                    93,744

Consolidated asset management income

 

                       1,875

                       2,025

Plus: Eliminated income from funds

 

                     20,655

                     12,733

Burford-only asset management income

 

                    22,530

                    14,758

Less: Non-cash adjustments(1)

 

                    (19,254)

                   (11,794)

Burford-only proceeds from asset management income

 

                      3,276

                      2,964

Burford-only proceeds from marketable security interest and dividends

 

                       2,672

                       1,740

Burford-only proceeds from other income

 

                       6,380

                       66

Burford-only proceeds from non-recurring items

 

                         650

                     -

Burford-only proceeds from other items

 

                    9,702

                      1,806

Cash receipts

 

                  109,477

                    98,514

 

 

(1) Adjustments for the change in asset management receivables accrued during the applicable period but not yet received at the end of such period.

 

 

 

Reconciliation of consolidated portfolio to Group-wide portfolio

 

 

December 31, 2023

 

 

(GAAP)

 

(non-GAAP)

 

 

 

 

Elimination of

 

 

 

 

 

 

 

 

 

 

 

 

 third-party

 

 

 

 

 

 

 

 

($ in thousands)

    

Consolidated

 

interests

 

Burford-only

    

Other funds

    

BOF-C

    

Group-wide

Capital provision assets - direct:

 

 

 

 

 

 

 

 

 

 

 

 

Deployed cost

 

 2,116,304

 

 (542,773)

 

 1,573,531

 

 416,318

 

 428,110

 

 2,417,959

   Plus: Fair value adjustments

 

 2,743,575

 

 (929,505)

 

 1,814,070

 

 180,169

 

 220,363

 

 2,200,935

Fair value

 

 4,859,879

 

 (1,472,278)

 

 3,387,601

 

 596,487

 

 648,473

 

 4,632,561

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital provision assets - indirect:

 

 

 

 

 

 

 

 

 

 

 

 

Fair value

 

 185,509

 

 (140,998)

 

 44,511

 

 140,998

 

 -

 

 185,509

 

 

 

 

 

 

 

 

 

 

 

 

 

Total capital provision assets

 

 5,045,388

 

 (1,613,276)

 

 3,432,112

 

 737,485

 

 648,473

 

 4,818,070

 

 

 

 

 

 

 

 

 

 

 

 

 

Post-settlement assets:

 

 

 

 

 

 

 

 

 

 

 

 

Deployed cost

 

 -

 

 -

 

 -

 

 253,062

 

 -

 

 253,062

   Plus: Fair value adjustments

 

 -

 

 -

 

 -

 

 45,792

 

 -

 

 45,792

Fair value

 

 -

 

 -

 

 -

 

 298,854

 

 -

 

 298,854

 

 

 

 

 

 

 

 

 

 

 

 

 

Undrawn commitments:

 

 

 

 

 

 

 

 

 

 

 

 

Capital provision-direct

 

 1,801,627

 

 (405,566)

 

 1,396,061

 

 126,560

 

 396,646

 

 1,919,267

Capital provision-indirect

 

 71,662

 

 (59,718)

 

 11,944

 

 59,718

 

 -

 

 71,662

Post-settlement

 

 -

 

 -

 

 -

 

 62,455

 

 -

 

 62,455

Total undrawn commitments

 

 1,873,289

 

 (465,284)

 

 1,408,005

 

 248,733

 

 396,646

 

 2,053,384

 

 

 

 

 

 

 

 

 

 

 

 

 

Total portfolio

 

 6,918,677

 

 (2,078,560)

 

 4,840,117

 

 1,285,072

 

 1,045,119

 

 7,170,308

 

 

December 31, 2022

 

 

(GAAP)

 

(non-GAAP)

 

 

 

 

Elimination of

 

 

 

 

 

 

 

 

 

 

 

 

 third-party

 

 

 

 

 

 

 

 

($ in thousands)

    

Consolidated

 

interests

 

Burford-only

    

Other funds

    

BOF-C

    

Group-wide

Capital provision assets - direct:

 

 

 

 

 

 

 

 

 

 

 

 

Deployed cost

 

 1,934,662

 

 (448,512)

 

 1,486,150

 

 422,098

 

 383,322

 

 2,291,570

   Plus: Fair value adjustments

 

 1,687,641

 

 (569,786)

 

 1,117,855

 

 133,122

 

 133,660

 

 1,384,637

Fair value

 

 3,622,303

 

 (1,018,298)

 

 2,604,005

 

 555,220

 

 516,982

 

 3,676,207

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital provision assets - indirect:

 

 

 

 

 

 

 

 

 

 

 

 

Fair value

 

 113,253

 

 (81,839)

 

 31,414

 (1)

 81,840

 

 -

 

 113,254

 

 

 

 

 

 

 

 

 

 

 

 

 

Total capital provision assets

 

 3,735,556

 

 (1,100,136)

 

 2,635,419

 

 637,060

 

 516,982

 

 3,789,461

 

 

 

 

 

 

 

 

 

 

 

 

 

Post-settlement assets:

 

 

 

 

 

 

 

 

 

 

 

 

Deployed cost

 

 -

 

 -

 

 -

 

 358,193

 

 -

 

 358,193

   Plus: Fair value adjustments

 

 -

 

 -

 

 -

 

 81,067

 

 -

 

 81,067

Fair value

 

 -

 

 -

 

 -

 

 439,260

 

 -

 

 439,260

 

 

 

 

 

 

 

 

 

 

 

 

 

Undrawn commitments:

 

 

 

 

 

 

 

 

 

 

 

 

Capital provision-direct

 

 1,671,327

 

 (372,279)

 

 1,299,048

 

 182,372

 

 371,724

 

 1,853,144

Capital provision-indirect

 

 49,400

 

 (41,167)

 

 8,233

 

 41,167

 

 -

 

 49,400

Post-settlement

 

 -

 

 -

 

 -

 

 15,606

 

 -

 

 15,606

Total undrawn commitments

 

 1,720,727

 

 (413,446)

 

 1,307,281

 

 239,145

 

 371,724

 

 1,918,150

 

 

 

 

 

 

 

 

 

 

 

 

 

Total portfolio

 

 5,456,283

 

 (1,513,583)

 

 3,942,700

 

 1,315,465

 

 888,706

 

 6,146,871

 

(1) The fair value of $2,635.4 million for the Burford-only capital provision assets did not include an additional $1.0 million for the Burford only portion of the receivable from due from settlement of capital provision assets on concluded assets in the Strategic Value Fund for a total fair value of $2,636.4 million for Burford-only capital provision assets as noted in the table under “Reconciliation of consolidated to Burford-only fair value of the YPF-related assets”.

 

Reconciliation of consolidated to Burford-only cash and cash equivalents and marketable securities

 

December 31, 2023

 

December 31, 2022

 

(GAAP)

(Non-GAAP)

 

(GAAP)

(Non-GAAP)

($ in thousands)

Consolidated

Elimination of third-party interests

Burford-only

 

Consolidated

Elimination of third-party interests

Burford-only

Cash and cash equivalents

220,549

(24,634)

195,915

 

107,658

(33,979)

73,679

Marketable securities

107,561

-

107,561

 

136,358

-

136,358

Total cash and cash equivalents and marketable securities

328,110

(24,634)

303,476

 

244,016

(33,979)

210,037

 

 

Reconciliation of consolidated to Burford-only fair value of the YPF-related assets

 

December 31, 2023

 

December 31, 2022

 

(GAAP)

(Non-GAAP)

 

(GAAP)

(Non-GAAP)

($ in thousands)

Consolidated

Elimination of third-party interests

Burford-only

 

Consolidated

Elimination of third-party interests

Burford-only

YPF-related assets

2,058,117

(686,460)

1,371,657

 

1,232,549

(409,514)

823,035

Other assets

2,987,271

(926,816)

2,060,455

 

2,503,007

(689,602)

1,813,405

Capital provision assets

5,045,388

(1,613,276)

3,432,112

 

3,735,556