1Q24 Results & Quarterly Report
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Burford Capital Reports First Quarter 2024 Results Burford Capital Limited ("Burford"), the leading global finance and asset management firm focused on law, today announces its first quarter 2024 results . In addition, Burford has made available an accompanying first quarter 2024 results presentation on its website at http://investors.burfordcapital.com and at http://www.rns-pdf.londonstockexchange.com/rns/1591O_1-2024-5-13.pdf .
Christopher Bogart, Chief Executive Officer of Burford Capital, commented:
"Our first quarter showed our highest ever reported level of first quarter cash receipts, above-average realized gains, continued case conclusions with loss levels below historical experience and moderate new business activity broadly consistent with a typical first quarter. Total revenues reflected the variable timing of recognition we expect in our business; the underlying portfolio continued to show forward momentum with no material negative developments, while lower operating expenses reflected the absence of elevated variable costs."
Consolidated financial results
Summary statements of operations
Three months ended March 31,
| Consolidated (US GAAP) ($ in thousands, except per share data) | 2024 | 2023 | % change |
|---|---|---|---|
| Capital provision income | 40,761 | 475,933 | -91% |
| Asset management income | 1,863 | 1,997 | -7% |
| Total revenues | 44,295 | 380,905 | -88% |
| Total operating expenses | 30,138 | 54,299 | -44% |
| Net income/(loss) attributable to Burford Capital Limited shareholders | (29,937) | 259,425 | NM |
| Per diluted ordinary share | (0.14) | 1.17 | NM |
Note: "NM" denotes not meaningful. Changes from negative to positive amounts and positive to negative amounts, increases or decreases from zero and changes greater than 700% are not considered meaningful.
Summary statements of financial position
| Consolidated (US GAAP) ($ in thousands, except per share data) | March 31, 2024 | December 31, 2023 | % change |
|---|---|---|---|
| Capital provision assets | 5,096,807 | 5,045,388 | 1% |
| Total Burford Capital Limited equity | 2,261,789 | 2,290,858 | -1% |
| Book value per ordinary share | 10.34 | 10.46 | -1% |
| Non-controlling interests | 864,465 | 916,922 | -6% |
| Total shareholders' equity | 3,126,254 | 3,207,780 | -3% |
| Total liabilities and shareholders' equity | 6,012,208 | 5,837,394 | 3% |
In this announcement, references to "1Q24"and "1Q23" are to Burford's financial results for the three months ended March 31, 2024 and 2023, respectively. All figures in this announcement are presented on an unaudited consolidated basis in accordance with the generally accepted accounting principles in the United States ("US GAAP"), unless otherwise stated. Figures at and for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2024. 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 metrics 1
Three months ended March 31,
| Burford-only (non-GAAP) ($ in thousands) | 2024 | 2023 | % change |
|---|---|---|---|
| Realized gains | 28,754 | 35,613 | -19% |
| Realizations | 61,074 | 61,746 | -1% |
| Cash receipts 2 | 137,694 | 97,157 | 42% |
| Deployments | 59,080 | 66,993 | -12% |
| New commitments | 82,459 | 100,764 | -18% |
1 Represents Burford-only capital provision-direct, unless noted otherwise.
| Group-wide (non-GAAP) ($ in thousands) | March 31, 2024 | December 31, 2023 | % change |
| Total portfolio | 7,126,980 | 7,170,308 | -1% |
| § | Realized gains in 1Q24 down 19% to $29 million (1Q23: $36 million) | ||
| o | Realized gains comprised $45 million of gross realized gains offset by $16 million of gross realized losses primarily related to unfavorable conclusions in sub-cases within a portfolio asset that previously generated realized gains in excess of the loss | ||
| § | Realizations in 1Q24 of $61 million (1Q23: $62 million) | ||
| o | Continued brisk post-Covid-19 pandemic pace of realizations in 1Q24 reflects continuing elevated resolution frequency amid normalized court activity and reducing case backlogs | ||
| § | Cash receipts in 1Q24 up 42% to $138 million (1Q23: $97 million) | ||
| o | Cash receipts in 1Q24 were 2.2x total operating expenses and finance costs, and were broadly diversified with five assets generating total proceeds of $103 million and each asset's proceeds greater than $10 million | ||
| § | Deployments in 1Q24 down 12% to $59 million (1Q23: $67 million) | ||
| o | Burford-only capital provision-direct deployments generally in line with prior first quarters | ||
| o | $1.4 billion of Burford-only capital provision-direct undrawn commitments to legal finance assets at March 31, 2024 serves as a strong base for potential future deployments | ||
| § | Capital provision-direct new commitments on Burford-only basis in 1Q24 down 18% to $82 million (1Q23: $101 million) |
o First quarter typically quiet for new commitments-while 1Q23 was slightly more active with $101 million of new commitments, 1Q22 new commitments were lower at $44 million
| § | Group-wide total portfolio steady at $7.1 billion (December 31, 2023: $7.2 billion) | |||
|---|---|---|---|---|
| Selected financial metrics | ||||
| Three months ended March 31, | ||||
| Burford-only (non-GAAP) ($ in thousands, except per share data) | 2024 | 2023 | $ change | % change |
| Total revenues | 31,378 | 338,677 | -307,299 | -91% |
| Total operating expenses | 29,664 | 54,009 | -24,345 | -45% |
| Operating income/(loss) | 1,714 | 284,668 | -282,954 | -99% |
| Net income/(loss) attributable to Burford Capital Limited shareholders | (29,937) | 259,425 | -289,362 | NM |
| Burford-only (non-GAAP) ($ in thousands, except per share data) | March 31, 2024 | December 31, 2023 | $ change | % change |
| Tangible book value attributable to Burford Capital Limited | 2,127,833 | 2,156,893 | -29,060 | -1% |
| Tangible book value attributable to Burford Capital Limited per ordinary share | 9.73 | 9.85 | -0.12 | -1% |
| § | Total revenues in 1Q24 of $31 million (1Q23: $339 million), with portfolio case development progressing well and timing of revenue recognition variable, as expected in our business, and with no individual asset having a material impact on 1Q24 quarterly performance | |||
| o | Realized gains on total capital provision assets of $30 million in 1Q24 driven by capital provision-direct assets, representing our highest returning core legal finance strategy | |||
| o | Unrealized losses on total capital provision assets were $9 million in 1Q24 (1Q23: unrealized gains of $277 million)-fair value adjustments affected by a number of factors, including changes in discount rate, duration and litigation risk premium, the reversal of previously recognized unrealized gains upon conclusion of a matter and its transfer to realized gains and actual performance of matters as they pass through milestones | |||
| § | Operating income in 1Q24 of $2 million (1Q23: $285 million), attributable principally to the decrease in total revenues | |||
| o | Total operating expenses normalized in 1Q24, down 45% to $30 million (1Q23: $54 million), in the absence of elevated variable costs | |||
| o | General, administrative and other expenses in 1Q24 down 6% to $7 million (1Q23: $8 million), while case-related expenditures were approximately $6 million lower | |||
| § | Net loss attributable to Burford Capital Limited shareholders in 1Q24 of $30 million (1Q23: net income of $259 million) | |||
| o | Net loss per diluted share in 1Q24 of $0.14 (1Q23: net income of $1.17 per diluted share) | |||
| § | Tangible book value attributable to Burford Capital Limited of $2.1 billion at March 31, 2024 (December 31, 2023: $2.2 billion) | |||
| o | Tangible book value attributable to Burford Capital Limited per ordinary share de creased 1% to $9.73 at March 31, 2024 (December 31, 2023: $9.85) | |||
| Selected portfolio metrics | ||||
| Burford-only (non-GAAP) ($ in thousands) | March 31, 2024 | December 31, 2023 | $ change | % change |
| Deployed cost | 1,595,505 | 1,573,531 | 21,974 | 1% |
| Plus: Fair value adjustments | 1,806,542 | 1,814,070 | -7,528 | 0% |
| Fair value | 3,402,047 | 3,387,601 | 14,446 | 0% |
| Undrawn commitments | 1,406,220 | 1,396,061 | 10,159 | 1% |
| Total capital provision-direct portfolio | 4,808,267 | 4,783,662 | 24,605 | 1% |
| Total capital provision portfolio 1 | 4,851,592 | 4,840,117 | -11,475 | 0% |
1 Represents capital provision-direct and capital provision-indirect.
| § | Fair value of Burford-only capital provision-direct assets increased by $14 million to $3.4 billion at March 31, 2024 (December 31, 2023: $3.4 billion) | |||
|---|---|---|---|---|
| § | Cumulative ROIC since inception from Burford-only capital provision-direct assets of 82% (December 31, 2023: 82%) and IRR of 27% (December 31, 2023: 27%) | |||
| Liquidity and capital | ||||
| Burford-only (non-GAAP) ($ in thousands) | March 31, 2024 | December 31, 2023 | $ change | % change |
| Liquidity | ||||
| Cash and cash equivalents | 464,698 | 195,915 | 268,783 | 137% |
| Marketable securities | 102,873 | 107,561 | (4,688) | -4% |
| Total liquidity | 567,571 | 303,476 | 264,095 | 87% |
| Due from settlement of capital provision assets | 131,688 | 185,267 | (53,579) | -29% |
| § | Burford-only cash and cash equivalents and marketable securities of $568 million at March 31, 2024 (December 31, 2023: $303 million) | |||
| o | Robust liquidity position at March 31, 2024 augmented by $138 million of Burford-only cash receipts and $275 million add-on offering to 2031 senior notes in January 2024 | |||
| § | Burford-only due from settlement of capital provision assets of $132 million at March 31, 2024 (December 31, 2023: $185 million), with 30% of December 31, 2023 balance collected in 1Q24 | |||
| § | Total debt outstanding of $1.8 billion at March 31, 2024 (December 31, 2023: $1.6 billion) | |||
| o | Leverage remains well below covenant ceiling levels | |||
Investor and analyst conference call
Burford will hold a conference call for investors and analysts at 8.00am EDT / 1.00pm BST on Monday, May 13, 2024. The dial-in numbers for the conference call are +1 646 307 -1963 (USA) or +1 800 715-9871 (USA & Canada toll free) / +44 (0)20 3481 4247 (UK) or +44 800 260 6466 (UK toll free) and the access code is 7684047. To minimize the risk of delayed access, participants are urged to dial into the conference call by 7.40am EDT / 12.40pm BST . A live webcast of the call will also be available at https://events.q4inc.com/attendee/323980508 , and pre-registration at that link is encouraged. An accompanying 1Q24 results presentation for investors and analysts will also be made available on Burford' s website prior to the conference call at http://investors.burfordcapital.com . Following the conference call, a replay facility for this event will be accessible through the webcast at https://events.q4inc.com/attendee/323980508 .
Summary financial statements and reconciliations The tables below set forth summaries of the condensed consolidated and Burford-only statements of operations for the three months ended March 31, 2024 and 2023, the condensed consolidated and Burford-only statements of financial position at March 31, 2024 and December 31, 2023 and corresponding reconciliations from consolidated to Burford-only financial results . Furthermore, the tables below set forth certain additional reconciliations for financial information contained in this announcement.
Summary condensed consolidated statements of operations
Three months ended March 31,
| ($ in thousands) | 2024 | 2023 |
|---|---|---|
| Revenues | ||
| Capital provision income/(loss) | 40,761 | 475,933 |
| (Less)/Plus: Third-party interests in capital provision assets | (5,224) | (100,345) |
| Asset management income | 1,863 | 1,997 |
| Marketable securities and other income/(loss) | 6,895 | 3,320 |
| Total revenues | 44,295 | 380,905 |
| Total operating expenses | 30,138 | 54,299 |
| Operating income/(loss) | 14,157 | 326,606 |
| Finance costs | 32,567 | 20,553 |
| Foreign currency transactions (gains)/losses | 492 | (2,440) |
| Income/(loss) before income taxes | (18,902) | 308,493 |
| (Provision for)/benefit from income taxes | 1,404 | (7,112) |
| Net income/(loss) | (17,498) | 301,381 |
| Net income/(loss) attributable to Burford Capital Limited shareholders | (29,937) | 259,425 |
Net income/(loss) attributable to Burford Capital Limited shareholders per ordinary share
| ($ in thousands) | 2024 | 2023 | |||||
|---|---|---|---|---|---|---|---|
| Basic | $(0.14) | $1.19 | |||||
| Diluted | $(0.14) | $1.17 | |||||
| Summary Burford-only statement of operations | |||||||
| Three months ended March 31, | |||||||
| ($ in thousands) | 2024 | 2023 | |||||
| Revenues | |||||||
| Capital provision income/(loss) | 17,903 | 316,015 | |||||
| Asset management income | 6,673 | 19,357 | |||||
| Marketable securities and other income/(loss) | 6,802 | 3,305 | |||||
| Total revenues | 31,378 | 338,677 | |||||
| Total operating expenses | 29,664 | 54,009 | |||||
| Operating income | 1,714 | 284,668 | |||||
| Net income | (29,937) | 259,425 | |||||
| Net income per share: | |||||||
| Basic | $(0.14) | $1.19 | |||||
| Diluted | $(0.14) | $1.17 | |||||
| Three months ended March 31, 2024 | |||||||
| (GAAP) | (Non-GAAP) | ||||||
| Elimination of third-party interests | |||||||
| ($ in thousands) | Consolidated | Strategic Value Fund | BOF-C | Colorado | Advantage Fund | Other | Burford-only |
| Capital provision income | 40,761 | - | (9,686) | (5,420) | (7,271) | (481) | 17,903 |
| (Less): Third-party interests in capital provision assets | (5,224) | - | - | 5,369 | - | (145) | - |
| Asset management income | 1,863 | - | 4,810 | - | - | - | 6,673 |
| Marketable securities and other income | 6,895 | - | (88) | - | - | (5) | 6,802 |
| Total revenues | 44,295 | - | (4,964) | (51) | (7,271) | (631) | 31,378 |
| Total operating expenses | 30,138 | - | 44 | (51) | (169) | (298) | 29,664 |
| Operating income | 14,157 | - | (5,008) | - | (7,102) | (333) | 1,714 |
| Net income/(loss) | (17,498) | - | (5,008) | - | (7,102) | (329) | (29,937) |
| Three months ended March 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 | 475,933 | (107) | (48,308) | (99,769) | (7,022) | (4,712) | 316,015 |
| (Less): Third-party interests in capital provision assets | (100,345) | - | - | 99,764 | - | 581 | - |
| Asset management income | 1,997 | 46 | 17,314 | - | - | - | 19,357 |
| Marketable securities and other income | 3,320 | - | (1) | - | - | (14) | 3,305 |
| Total revenues | 380,905 | (61) | (30,995) | (5) | (7,022) | (4,145) | 338,677 |
| Total operating expenses | 54,299 | (155) | 30 | (5) | (123) | (37) | 54,009 |
| Operating income | 326,606 | 94 | (31,025) | - | (6,899) | (4,108) | 284,668 |
| Net income/(loss) | 301,381 | 94 | (31,025) | - | (6,899) | (4,126) | 259,425 |
Reconciliations of operating expenses from the condensed consolidated statements of operations to Burford-only statements of operations
Three months ended March 31, 2024
| (GAAP) | (non-GAAP) | ||
|---|---|---|---|
| Eliminations and | |||
| ($ in thousands) | Consolidated | adjustments | Burford-only |
| Compensation and benefits | |||
| Salaries and benefits | 11,664 | - | 11,664 |
| Annual incentive compensation | 4,836 | - | 4,836 |
| Share-based compensation | 3,863 | - | 3,863 |
| Long-term incentive compensation including accruals | 1,638 | - | 1,638 |
| General, administrative and other | 7,450 | (333) | 7,117 |
| Case-related expenditures ineligible for inclusion in asset cost | 687 | (141) | 546 |
| Total operating expenses | 30,138 | (474) | 29,664 |
| Three months ended March 31, 2023 | |||
| (GAAP) | (non-GAAP) | ||
| Eliminations and | |||
| ($ in thousands) | Consolidated | adjustments | Burford-only |
| Compensation and benefits | |||
| Salaries and benefits | 12,492 | - | 12,492 |
| Annual incentive compensation | 4,686 | - | 4,686 |
| Share-based compensation | 3,504 | - | 3,504 |
| Long-term incentive compensation including accruals | 19,555 | - | 19,555 |
| General, administrative and other | 7,751 | (199) | 7,552 |
| Case-related expenditures ineligible for inclusion in asset cost | 6,311 | (91) | 6,220 |
| Total operating expenses | 54,299 | (290) | 54,009 |
| Summary condensed consolidated statement of financial position | |||
| ($ in thousands) | March 31, 2024 | December 31, 2023 | |
| Total assets | 6,012,208 | 5,837,394 | |
| Total liabilities | 2,885,954 | 2,629,614 | |
| Total Burford Capital Limited equity | 2,261,789 | 2,290,858 | |
| Non-controlling interests | 864,465 | 916,922 | |
| Total shareholders' equity | 3,126,254 | 3,207,780 | |
| Basic ordinary shares outstanding | 218,673,490 | 218,962,441 | |
| Total shareholders' equity attributable to Burford Capital Limited per basic ordinary share | 10.34 | 10.46 | |
| Total shareholders' equity per basic ordinary share | 14.30 | 14.65 | |
Reconciliation of summary consolidated statement of financial position to summary Burford-only statement of financial position
| (GAAP) | (Non-GAAP) | |||||
|---|---|---|---|---|---|---|
| Elimination of third-party interests | ||||||
| ($ in thousands) | Consolidated | BOF-C | Colorado | Advantage Fund | Other | Burford-only |
| Total assets | 6,012,208 | (604,919) | (691,682) | (199,002) | (78,823) | 4,437,782 |
| Total liabilities | 2,885,954 | - | (691,682) | (154) | (18,125) | 2,175,993 |
| Total shareholders' equity | 3,126,254 | (604,919) | - | (198,848) | (60,698) | 2,261,789 |
| (GAAP) | (Non-GAAP) | |||||
| Elimination of third-party interests | ||||||
| ($ in thousands) | Consolidated | 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 |
Reconciliation of components of realizations from a consolidated basis to a Group-wide basis
Three months ended March 31, 2024
| (GAAP) | (Non-GAAP) | |||||
|---|---|---|---|---|---|---|
| ($ in thousands) | Consolidated | Eliminations and adjustments | Burford-only | Other funds | BOF-C | Group-wide |
| Capital provision-direct | 104,193 | (43,119) | 61,074 | 28,771 | 30,198 | 120,043 |
| Capital provision-indirect | 8,778 | (7,315) | 1,463 | 7,315 | - | 8,778 |
| Post-settlement | - | - | - | 27,834 | - | 27,834 |
| Total realizations | 112,971 | (50,434) | 62,537 | 63,920 | 30,198 | 156,655 |
| Three months ended March 31, 2023 | ||||||
| (GAAP) | (Non-GAAP) | |||||
| ($ in thousands) | Consolidated | Eliminations and adjustments | Burford-only | Other funds | BOF-C | Group-wide |
| Capital provision-direct | 115,732 | (53,986) | 61,746 | 50,390 | 35,423 | 147,559 |
| Capital provision-indirect | 12,580 | (10,484) | 2,096 | 10,484 | - | 12,580 |
| Post-settlement | - | - | - | 18,680 | - | 18,680 |
| Total realizations | 128,312 | (64,470) | 63,842 | 79,554 | 35,423 | 178,819 |
Reconciliation of components of deployments from a consolidated basis to a Group-wide basis
Three months ended March 31, 2024
| (GAAP) | (Non-GAAP) | |||||
|---|---|---|---|---|---|---|
| ($ in thousands) | Consolidated | Eliminations and adjustments | Burford-only | Other funds | BOF-C | Group-wide |
| Capital provision-direct | 74,790 | (15,710) | 59,080 | 2,540 | 16,609 | 78,229 |
| Capital provision-indirect | 50,613 | (42,178) | 8,435 | 42,178 | - | 50,613 |
| Post-settlement | - | - | - | 20,707 | - | 20,707 |
| Total deployments | 125,403 | (57,888) | 67,515 | 65,425 | 16,609 | 149,549 |
| Three months ended March 31, 2023 | ||||||
| (GAAP) | (Non-GAAP) | |||||
| ($ in thousands) | Consolidated | Eliminations and adjustments | Burford-only | Other funds | BOF-C | Group-wide |
| Capital provision-direct | 84,685 | (17,692) | 66,993 | 6,913 | 17,452 | 91,358 |
| Capital provision-indirect | 34,000 | (28,333) | 5,667 | 28,333 | - | 34,000 |
| Post-settlement | - | - | - | 3,867 | - | 3,867 |
| Total deployments | 118,685 | (46,025) | 72,660 | 39,113 | 17,452 | 129,225 |
Reconciliation of consolidated proceeds from capital provision assets to Burford-only cash receipts
| ($ in thousands) | Three months ended March 31, 2024 | Three months ended March 31, 2023 | ||||
|---|---|---|---|---|---|---|
| Consolidated proceeds from capital provision assets | 247,561 | 144,485 | ||||
| Less: Elimination of third-party interests | (120,036) | (60,563) | ||||
| Burford-only total proceeds from capital provision assets | 127,525 | 83,922 | ||||
| Burford-only proceeds from capital provision-direct assets | 112,922 | 77,742 | ||||
| Burford-only proceeds from capital provision-indirect assets | 14,603 | 6,180 | ||||
| Burford-only total proceeds from capital provision assets | 127,525 | 83,922 | ||||
| Consolidated asset management income | 1,863 | 1,997 | ||||
| Plus: Eliminated income from funds | 4,810 | 17,360 | ||||
| Burford-only asset management income | 6,673 | 19,357 | ||||
| Less: Non-cash adjustments (1) | (2,197) | (7,086) | ||||
| Burford-only proceeds from asset management income | 4,476 | 12,271 | ||||
| Burford-only proceeds from marketable security interest and dividends | 5,476 | 881 | ||||
| Burford-only proceeds from other income | 217 | 83 | ||||
| Burford-only proceeds from other items | 5,693 | 964 | ||||
| Cash receipts | 137,694 | 97,517 | ||||
| Reconciliation of consolidated portfolio to Group-wide portfolio | ||||||
| (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 | 2,127,082 | (531,577) | 1,595,505 | 368,994 | 437,697 | 2,402,196 |
| Plus: Fair value adjustments | 2,733,691 | (927,149) | 1,806,542 | 172,600 | 208,360 | 2,187,502 |
| Fair value | 4,860,773 | (1,458,726) | 3,402,047 | 541,594 | 646,057 | 4,589,698 |
| Capital provision assets - indirect: | ||||||
| Deployed cost | 210,974 | (177,182) | 33,792 | 177,182 | - | 210,974 |
| Plus: Fair value adjustments | 25,060 | (19,022) | 6,038 | 19,022 | - | 25,060 |
| Fair value | 236,034 | (196,204) | 39,830 | 196,204 | - | 236,034 |
| Total capital provision assets | 5,096,807 | (1,654,930) | 3,441,877 | 737,798 | 646,057 | 4,825,732 |
| Post-settlement assets: | ||||||
| Deployed cost | - | - | - | 248,823 | - | 248,823 |
| Plus: Fair value adjustments | - | - | - | 49,193 | - | 49,193 |
| Fair value | - | - | - | 298,016 | - | 298,016 |
| Undrawn commitments: | ||||||
| Capital provision-direct | 1,820,080 | (413,860) | 1,406,220 | 122,135 | 404,956 | 1,933,311 |
| Capital provision-indirect | 20,972 | (17,477) | 3,495 | 17,477 | - | 20,972 |
| Post-settlement | - | - | - | 48,949 | - | 48,949 |
| Total undrawn commitments | 1,841,052 | (431,337) | 1,409,715 | 188,561 | 404,956 | 2,003,232 |
| Total portfolio | 6,937,859 | (2,086,267) | 4,851,592 | 1,224,375 | 1,051,013 | 7,126,980 |
| (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 | 2,214,602 |
| Fair value | 4,859,879 | (1,472,278) | 3,387,601 | 596,487 | 648,473 | 4,632,561 |
| Capital provision assets - indirect: | ||||||
| Deployed cost | 164,259 | (125,508) | 38,751 | 125,508 | - | 164,259 |
| Plus: Fair value adjustments | 21,250 | (15,490) | 5,760 | 15,490 | - | 21,250 |
| 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 |
Reconciliation of consolidated to Burford-only cash and cash equivalents and marketable securities
| March 31, 2024 | December 31, 2023 | |||||
|---|---|---|---|---|---|---|
| (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 | 482,673 | (17,975) | 464,698 | 220,549 | (24,634) | 195,915 |
| Marketable securities | 102,873 | - | 102,873 | 107,561 | - | 107,561 |
| Total cash and cash equivalents and marketable securities | 585,546 | (17,975) | 567,571 | 328,110 | (24,634) | 303,476 |
Reconciliation of consolidated to Burford-only due from settlement of capital provision assets
| March 31, 2024 | December 31, 2023 | |||||
|---|---|---|---|---|---|---|
| (GAAP) | (Non-GAAP) | (GAAP) | (Non-GAAP) | |||
| ($ in thousands) | Consolidated | Elimination of third-party interests | Burford-only | Consolidated | Elimination of third-party interests | Burford-only |
| Due from settlement of capital provision assets | 131,688 | - | 131,688 | 265,540 | (80,273) | 185,267 |
Reconciliation of consolidated to Burford-only realized gains on capital provision-direct assets
| (GAAP) | (Non-GAAP) | ||||
|---|---|---|---|---|---|
| ($ in thousands) | Consolidated | Eliminations and adjustments | Burford-only total | Burford-only Capital provision-direct | Burford-only Capital provision-indirect |
| Realized gains/(losses) for the three months ended March 31, 2024 | 57,862 | (27,968) | 29,894 | 28,754 | 1,140 |
| Realized gains/(losses) for the three months ended March 31, 2023 | 69,442 | (33,829) | 35,613 | 35,613 | - |
Reconciliation of consolidated to Burford-only unrealized gains on capital provision-indirect assets
| (GAAP) | (Non-GAAP) | ||||
|---|---|---|---|---|---|
| ($ in thousands) | Consolidated | Eliminations and adjustments | Burford-only total | Burford-only Capital provision-direct | Burford-only Capital provision-indirect |
| Unrealized gains/(losses) for the three months ended March 31, 2024 | (13,701) | 4,613 | (9,088) | (9,366) | 278 |
| Unrealized gains/(losses) for the three months ended March 31, 2023 | 402,813 | (126,157) | 276,656 | 275,141 | 1,515 |
Reconciliation of tangible book value attributable to Burford Capital Limited per ordinary share
| ($ in thousands, except share data) | March 31, 2024 | December 31, 2023 |
|---|---|---|
| Total Burford Capital Limited equity | 2,261,789 | 2,290,858 |
| Less: Goodwill | ( 133 ,956) | ( 133 ,965) |
| Tangible book value attributable to Burford Capital Limited | 2,127,833 | 2,156,893 |
| Basic ordinary shares outstanding | 218,673,490 | 218,962,441 |
| Tangible book value attributable to Burford Capital Limited per ordinary share | $9.73 | $9.85 |
We subdivide our capital provision assets into two categories:
We also use certain unaudited alternative performance measures, including:
| • | Return on invested capital ("ROIC") from a concluded asset is the absolute amount of realizations from such asset in excess of the amount of expenditure incurred in financing such asset divided by the amount of expenditure incurred, expressed as a percentage figure. ROIC is a measure of our ability to generate absolute returns on our assets. Some industry participants express returns on a multiple of invested capital ("MOIC " ) instead of a ROIC basis. MOIC includes the return of capital and, therefore, is 1x higher than ROIC. In other words, 70% ROIC is the same as 1.70x MOIC. |
Other unaudited alternative performance measures and terms we use include:
| • | Portfolio includes deployed cost, net unrealized gains or losses and undrawn commitments. |
| We also use certain non-GAAP financial measures, including: | |
| • | Cash receipts provide a measure of the cash that our capital provision and other assets generate during a given period as well as cash from certain other fees and income. In particular, cash receipts represent the cash generated from capital provision and other assets, including cash proceeds from realized or concluded assets and any related hedging assets, and cash received from asset management income, services and/or other income, before any deployments into financing existing or new assets. Cash receipts are a non-GAAP financial measure and should not be considered in isolation from, as a substitute for, or superior to, financial measures calculated in accordance with US GAAP. The most directly comparable measure calculated in accordance with US GAAP is proceeds from capital provision assets as set forth in our consolidated statements of cash flows. We believe that cash receipts are an important measure of our operating and financial performance and are useful to management and investors when assessing the performance of our Burford-only capital provision assets. |
| • | Return on tangible equity ("ROTE") is Burford-only net income/(loss) divided by the average of tangible equity at the beginning and end of the relevant period, with tangible equity calculated as total Burford Capital Limited equity less goodwill. ROTE is a non-GAAP financial measure and should not be considered in isolation from, as a substitute for, or superior to, financial measures calculated in accordance with US GAAP. The most directly comparable measure calculated in accordance with US GAAP is net income/(loss) attributable to Burford Capital Limited shareholders as set forth in our consolidated statements of operations. We believe ROTE is an important measure of our operating and financial performance and is useful to management and investors when assessing the performance of our Burford-only capital provision assets. |
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