2Q24 Results & Quarterly Report
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Burford Capital Reports Second Quarter 2024 Results Burford Capital Limited ("Burford"), the leading global finance and asset management firm focused on law, today announces its unaudited f inancial results at and for the three and six months ended June 30, 2024 . In addition, Burford has made available an accompanying three and six months ended June 30, 2024 results presentation and capital provision-direct and capital provision-indirect asset data tables on its website at http://investors.burfordcapital.com and at http://www.rns-pdf.londonstockexchange.com/rns/7270Z_1-2024-8-8.pdf .
Christopher Bogart, Chief Executive Officer of Burford Capital, commented:
" Burford had a strong second quarter, with Burford-only total revenues up 217% and capital provision income up 237% over the comparable period in 2023. A series of case wins underline the lack of correlation between Burford's cash flows and markets or the economy and demonstrate continued progression in our $7.4 billion Group-wide total portfolio. New business was also active with new commitments above our recent quarterly average. As we've signaled, overall year-to-date results can't compare with last year given the unrealized gains from the 2023 YPF win, but year-to-date net realized gains on our core portfolio were up 36%. After a typically sleepy first quarter, we are very pleased with the performance of the business in the second quarter and in the first half of 2024 . "
Consolidated financial results
Summary statements of operations
| Six months ended June 30, | Three months ended June 30, | |||||
|---|---|---|---|---|---|---|
| Consolidated (US GAAP) ($ in thousands, except per share data) | 2024 | 2023 | % change | 2024 | 2023 | % change |
| Capital provision income | 198,506 | 511,600 | -61% | 157,745 | 35,667 | 342% |
| Asset management income | 3,507 | 3,891 | -10% | 1,644 | 1,894 | -13% |
| Total revenues | 203,948 | 425,456 | -52% | 159,653 | 44,551 | 258% |
| Total operating expenses | 68,289 | 97,931 | -30% | 38,151 | 43,632 | -13% |
| Net income/(loss) attributable to Burford Capital Limited shareholders | 23,809 | 237,885 | -90% | 53,746 | (21,540) | NM |
| Per diluted ordinary share | 0.11 | 1.07 | -90% | 0.24 | (0.10) | 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) | June 30, 2024 | December 31, 2023 | % change |
|---|---|---|---|
| Capital provision assets | 5,238,633 | 5,045,388 | 4% |
| Total Burford Capital Limited equity | 2,303,187 | 2,290,858 | 1% |
| Book value per ordinary share | 10.50 | 10.46 | 0.4% |
| Non-controlling interests | 929,115 | 916,922 | 1% |
| Total shareholders' equity | 3,232,302 | 3,207,780 | 1% |
| Total liabilities and shareholders' equity | 6,120,686 | 5,837,394 | 5% |
In this announcement, references to "2Q24" and "YTD24" are to Burford's financial results for the three and six months ended June 30, 2024, respectively, and references to "2Q23" and "YTD23" are to Burford's financial results for the three and six months ended June 30, 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 and six months ended June 30, 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
| Six months ended June 30, | Three months ended June 30, | |||||
|---|---|---|---|---|---|---|
| Burford-only (non-GAAP) ($ in thousands) | 2024 | 2023 | % change | 2024 | 2023 | % change |
| Net realized gains/(losses) | 127,907 | 94,394 | 36% | 99,153 | 58,781 | 69% |
| Realizations | 215,738 | 194,943 | 11% | 154,664 | 133,197 | 16% |
| Cash receipts 2 | 245,057 | 246,938 | -1% | 107,363 | 149,781 | -28% |
| Deployments | 190,826 | 248,446 | -23% | 131,745 | 181,453 | -27% |
| New commitments | 342,590 | 431,034 | -21% | 260,131 | 330,270 | -21% |
1 Represents Burford-only capital provision-direct, unless noted otherwise.
| Group-wide (non-GAAP) ($ in thousands) | June 30, 2024 | December 31, 2023 | % change |
| Total portfolio | 7,383,303 | 7,170,308 | 3% |
| § | Net realized gains in YTD24 up 36% to $128 million (YTD23: $94 million), reflecting multiple case wins and higher returns with a ROIC of 146% on realizations for fully and partially concluded assets in YTD24 | ||
| o | Net realized gains in YTD24 comprised $151 million of gross realized gains (YTD23: $120 million) offset by $23 million of gross realized losses (YTD23: $25 million) | ||
| § | Realizations in YTD24 of $216 million (YTD23: $195 million) | ||
| o | Highest first half since 2020 with realizations diversified across vintage years as Covid-19 pandemic backlog continues to clear in tandem with newer case resolutions | ||
| o | During YTD24, eight different assets generated more than $10 million of realizations each, with three of those delivering $25 million or more each | ||
| § | Cash receipts in YTD24 of $245 million (YTD23: $247 million) | ||
| o | Cash generation has been consistent with quarterly receipts near or exceeding $100 million in each of the last eight quarters | ||
| § | Deployments in YTD24 of $191 million (YTD23: $248 million) | ||
| o | Deployments in 2Q24 of $132 million exceeded their trailing eight-quarter average by 25% and were 2.2x the level of deployments in 1Q24 | ||
| o | Definitive undrawn commitments to Burford-only capital provision assets-representing non-discretionary future deployments-were up 16% in YTD24 to $675 million at June 30, 2024 (December 31, 2023: $580 million) | ||
| § | Burford-only capital provision-direct new commitments in YTD24 of $343 million (YTD23: $431 million) were well diversified across patent, US commercial, EMEA and arbitration case types |
o New commitments in 2Q24 of $260 million (2Q23: $330 million) exceeded their trailing eight-quarter average by 43%
o Absence in 2Q24 of Fortune 50 company portfolio new commitment of $190 million in 2Q23 impacted period-on-period comparisons
Selected financial metrics
| Six months ended June 30, | Three months ended June 30, | |||||
|---|---|---|---|---|---|---|
| Burford-only (non-GAAP) ($ in thousands, except per share data) | 2024 | 2023 | % change | 2024 | 2023 | % change |
| Total revenues | 168,655 | 381,914 | -56% | 137,277 | 43,237 | 217% |
| Total operating expenses | 66,966 | 97,576 | -31% | 37,302 | 43,567 | -14% |
| Operating income/(loss) | 101,689 | 284,338 | -64% | 99,975 | (330) | NM |
| Net income/(loss) | 23,809 | 237,885 | -90% | 53,746 | (21,540) | NM |
| Burford-only (non-GAAP) ($ in thousands, except per share data) | June 30, 2024 | December 31, 2023 | $ change | % change | ||
| Tangible book value attributable to Burford Capital Limited | 2,169,230 | 2,156,893 | 12,337 | 1% | ||
| Tangible book value attributable to Burford Capital Limited per ordinary share | 9.89 | 9.85 | 2.49 | 0.4% | ||
| § | Total revenues in 2Q24 of $137 million (2Q23: $43 million), driven by significantly higher capital provision income of $119 million (2Q23: $35 million) and with no individual asset having a significant impact on quarterly performance | |||||
| o | Total revenues in YTD24 were $169 million (YTD23: $382 million) with the prior year benefiting from the substantial positive impact of significant YPF-related capital provision income | |||||
| § | Operating income in 2Q23 of $100 million (2Q23: operating loss of $0.3 million) and $102 million in YTD24 (YTD23: $284 million), with the decrease in YTD24 attributable principally to the decrease in total revenues discussed above | |||||
| o | Total reported operating expenses down sharply in YTD24, with 2Q24 down 14% to $37 million (2Q23: $44 million) and YTD24 down 31% to $67 million (YTD23: $98 million), reflecting the variable impact of accruals for unrealized gains and movements in Burford's share price on a period-to-period basis | |||||
| o | Year-over-year variation of reported operating expenses does not correlate to significant changes in cash operating expense levels, which remain largely consistent | |||||
| Selected portfolio metrics | ||||||
| Burford-only (non-GAAP) ($ in thousands) | June 30, 2024 | December 31, 2023 | $ change | % change | ||
| Deployed cost | 1,669,894 | 1,573,531 | 96,363 | 6% | ||
| Plus: Fair value adjustments | 1,824,715 | 1,814,070 | 10,645 | 1% | ||
| Fair value | 3,494,609 | 3,387,601 | 107,008 | 3% | ||
| Undrawn commitments | 1,521,074 | 1,396,061 | 125,013 | 9% | ||
| Total capital provision-direct portfolio | 5,015,683 | 4,783,662 | 232,021 | 5% | ||
| Total capital provision portfolio 1 | 5,058,082 | 4,840,117 | 217,965 | 5% | ||
1 Represents capital provision-direct and capital provision-indirect.
| § | At June 30, 2024, cumulative ROIC since inception from Burford-only capital provision-direct assets of 86% (December 31, 2023: 82%) and IRR of 27% (December 31, 2023: 27%) | |||
|---|---|---|---|---|
| Liquidity and capital | ||||
| Burford-only (non-GAAP) ($ in thousands) | June 30, 2024 | December 31, 2023 | $ change | % change |
| Liquidity | ||||
| Cash and cash equivalents | 349,700 | 195,915 | 153,785 | 78% |
| Marketable securities | 92,924 | 107,561 | (14,637) | -14% |
| Total liquidity | 442,624 | 303,476 | 139,148 | 46% |
| Due from settlement of capital provision assets | 199,997 | 185,267 | 14,730 | 8% |
| § | Burford-only cash and cash equivalents and marketable securities of $443 million at June 30, 2024 (December 31, 2023: $303 million) | |||
| o | Robust liquidity position at June 30, 2024 augmented by $245 million of Burford-only cash receipts in YTD24 and $275 million add-on offering to 2031 senior notes in January 2024 | |||
| § | Burford-only due from settlement of capital provision assets of $200 million at June 30, 2024 (December 31, 2023: $185 million), with 43% of December 31, 2023 balance collected in YTD24 | |||
| § | Total debt outstanding of $1.8 billion at June 30, 2024 (December 31, 2023: $1.6 billion) | |||
| o | Leverage remains well below covenant ceiling levels | |||
| § | Declared interim dividend of 6.25¢ per ordinary share payable on December 5, 2024 to shareholders of record on November 1, 2024 | |||
Change in independent auditors As previously announced in a report on Form 6-K furnished to the US Securities and Exchange Commission on July 9, 2024, Ernst & Young LLP ("E&Y") was dismissed as Burford's independent registered public accounting firm effective immediately following the issuance of Burford's consolidated financial statements for the three and six months ended June 30, 2024. KPMG LLP ("KPMG") will replace E&Y as Burford's independent registered public accounting firm and will review Burford's consolidated financial statements for the three and nine months ending September 30, 2024 and will audit Burford's consolidated financial statements for the fiscal year ending December 31, 2024. KPMG's appointment is subject to the ratification of Burford's shareholders at an extraordinary general meeting to be held on August 20, 2024. In accordance with Guernsey law, E&Y has deposited with Burford a statement confirming there are no matters to be brought to the attention of Burford's members or creditors.
Adoption of US Rule 10b5-1 executive share liquidity plans A feature of the US public markets is a well-established and widely used approach for corporate executives to obtain some liquidity from their shareholdings as part of their personal financial planning. As part of its acquisition of full US domestic issuer status, Burford is joining typical US public company practice (including, we believe, the clear majority of S&P 500 companies) in permitting the use by its executives of plans that pre-set such transactions in the future, known as "Rule 10b5-1 trading plans" after the SEC rule that provides for such plans. To be clear, the adoption and use of Rule 10b5-1 plans does not alter a company's commitment to its executives being meaningfully exposed to its equity nor does it affect Burford's minimum share ownership policy for its executives; rather, Rule 10b5-1 plans provide a vehicle for enabling some liquidity in an orderly manner that removes executives from short-term trading decisions and the potential for market signaling. The Rule 10b5-1 plans will be administered by Merrill Lynch and operate as follows, consistent with the requirements of Rule 10b5-1 and the usual design of such plans. During any open period (which typically occurs following the release of each quarter's earnings), an executive may choose to adopt the Rule 10b5-1 plan by authorizing the sale of a certain amount of the executive's holdings in Burford's ordinary shares over the forthcoming year. Those sales are then managed by Merrill Lynch according to pre-set parameters set forth in the Rule 10b5-1 plan; the executive has no involvement in the trading process. No sales occur during what is known as a "cooling-off period," which is typically 90-120 days under the relevant rules after adopting the Rule 10b5-1 plan. Over the course of the next year, Burford expects that four of its executives (its CEO, CIO and co-COOs) will adopt and make use of the Rule 10b5-1 plans in connection with nominal levels of their Burford's ordinary shares. Burford expects that those executives will also continue to amass additional ordinary shares of Burford as an integral part of their compensation plans.
Investor and analyst conference call
Burford will hold a conference call for investors and analysts at 10.00am EDT / 3.00pm BST on Thursday, August 8, 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 36518. To minimize the risk of delayed access, participants are urged to dial into the conference call by 9.40am EDT / 2.40pm BST . A live webcast of the call will also be available at https://events.q4inc.com/attendee/572051862 , and pre-registration at that link is encouraged. An accompanying 2Q24 and 6M24 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/572051862 .
Summary financial statements and reconciliations The tables below set forth summaries of the condensed consolidated and Burford-only statements of operations for the three and six months ended June 30, 2024 and 2023, the condensed consolidated and Burford-only statements of financial position at June 30, 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 June 30, | Six months ended June 30, | |||
|---|---|---|---|---|
| ($ in thousands) | 2024 | 2023 | 2024 | 2023 |
| Revenues | ||||
| Capital provision income/(loss) | 157,745 | 35,667 | 198,506 | 511,600 |
| (Less)/Plus: Third-party interests in capital provision assets | (6,264) | 4,813 | (11,488) | (95,532) |
| Asset management income/(loss) | 1,644 | 1,894 | 3,507 | 3,891 |
| Services and other income/(loss) | 6,528 | 2,177 | 13,423 | 5,497 |
| Total revenues | 159,653 | 44,551 | 203,948 | 425,456 |
| Total operating expenses | 38,151 | 43,632 | 68,289 | 97,931 |
| Operating income/(loss) | 121,502 | 919 | 135,659 | 327,525 |
| Finance costs and loss on debt extinguishment | 34,466 | 21,124 | 67,033 | 41,677 |
| Foreign currency transactions (gains)/losses | 67 | (8,898) | 559 | (11,338) |
| Income/(loss) before income taxes | 86,969 | 12,226 | 68,067 | 297,186 |
| Benefit from/(provision for) income taxes | (11,697) | (8,969) | (10,293) | (16,081) |
| Net income/(loss) | 75,272 | (20,276) | 57,774 | 281,105 |
| Net income/(loss) attributable to Burford Capital Limited shareholders | 53,746 | (21,540) | 23,809 | 237,885 |
Net income/(loss) attributable to Burford Capital Limited shareholders per ordinary share
| Three months ended June 30, | Six months ended June 30, | ||||||
|---|---|---|---|---|---|---|---|
| ($ in thousands) | 2024 | 2023 | 2024 | 2023 | |||
| Basic | $0.25 | ($0.10) | $0.11 | $1.09 | |||
| Diluted | $0.24 | ($0.10) | $0.11 | $1.07 | |||
| Summary Burford-only statement of operations | |||||||
| Three months ended June 30, | Six months ended June 30, | ||||||
| ($ in thousands) | 2024 | 2023 | 2024 | 2023 | |||
| Revenues | |||||||
| Capital provision income | 119,360 | 35,392 | 137,263 | 351,407 | |||
| Asset management income | 11,487 | 5,684 | 18,160 | 25,041 | |||
| Services and other income | 6,430 | 2,161 | 13,232 | 5,466 | |||
| Total revenues | 137,277 | 43,237 | 168,655 | 381,914 | |||
| Operating expenses | 37,302 | 43,567 | 66,966 | 97,576 | |||
| Operating income | 99,975 | (330) | 101,689 | 284,338 | |||
| Net income | 53,746 | (21,540) | 23,809 | 237,885 | |||
| Net income per share: | |||||||
| Basic | $0.25 | ($0.10) | $0.11 | $1.09 | |||
| Diluted | $0.24 | ($0.10) | $0.11 | $1.07 | |||
| Three months ended June 30, 2024 | |||||||
| (GAAP) | (Non-GAAP) | ||||||
| Elimination of third-party interests | |||||||
| ($ in thousands) | Consolidated | BOF-C | Colorado | Advantage Fund | Other | Burford-only | |
| Capital provision income | 157,745 | (23,332) | (7,406) | (5,774) | (1,873) | 119,360 | |
| (Less): Third-party interests in capital provision assets | (6,264) | - | 7,385 | - | (1,121) | - | |
| Asset management income | 1,644 | 9,843 | - | - | - | 11,487 | |
| Services and other income | 6,528 | (97) | - | - | (1) | 6,430 | |
| Total revenues | 159,653 | (13,586) | (21) | (5,774) | (2,995) | 137,277 | |
| Operating expenses | 38,151 | 46 | (21) | (105) | (769) | 37,302 | |
| Operating income | 121,502 | (13,632) | - | (5,669) | (2,226) | 99,975 | |
| Net income/(loss) | 75,272 | (13,632) | - | (5,669) | (2,225) | 53,746 | |
| Three months ended June 30, 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 | 35,667 | (100) | 72 | 4,728 | (4,983) | 8 | 35,392 |
| (Less): Third-party interests in capital provision assets | 4,813 | - | - | (4,753) | - | (60) | - |
| Asset management income | 1,894 | 46 | 3,744 | - | - | - | 5,684 |
| Services and other income | 2,177 | - | (1) | - | - | (15) | 2,161 |
| Total revenues | 44,551 | (54) | 3,815 | (25) | (4,983) | (67) | 43,237 |
| Operating expenses | 43,632 | (141) | 187 | (25) | (80) | (6) | 43,567 |
| Operating income | 919 | 87 | 3,628 | - | (4,903) | (61) | (330) |
| Net income/(loss) | (20,276) | 87 | 3,628 | - | (4,903) | (76) | (21,540) |
| Six months ended June 30, 2024 | |||||||
| (GAAP) | (Non-GAAP) | ||||||
| Elimination of third-party interests | |||||||
| ($ in thousands) | Consolidated | BOF-C | Colorado | Advantage Fund | Other | Burford-only | |
| Capital provision income | 198,506 | (33,018) | (12,826) | (13,045) | (2,354) | 137,263 | |
| (Less): Third-party interests in capital provision assets | (11,488) | - | 12,754 | - | (1,266) | - | |
| Asset management income | 3,507 | 14,653 | - | - | - | 18,160 | |
| Services and other income | 13,423 | (185) | - | - | (6) | 13,232 | |
| Total revenues | 203,948 | (18,550) | (72) | (13,045) | (3,626) | 168,655 | |
| Operating expenses | 68,289 | 90 | (72) | (274) | (1,067) | 66,966 | |
| Operating income | 135,659 | (18,640) | - | (12,771) | (2,559) | 101,689 | |
| Net income/(loss) | 57,774 | (18,640) | - | (12,771) | (2,554) | 23,809 | |
| Six months ended June 30, 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 | 511,600 | (207) | (48,236) | (95,041) | (12,005) | (4,704) | 351,407 |
| (Less): Third-party interests in capital provision assets | (95,532) | - | - | 95,011 | - | 521 | - |
| Asset management income | 3,891 | 92 | 21,058 | - | - | - | 25,041 |
| Services and other income | 5,497 | - | (2) | - | - | (29) | 5,466 |
| Total revenues | 425,456 | (115) | (27,180) | (30) | (12,005) | (4,212) | 381,914 |
| Operating expenses | 97,931 | (296) | 217 | (30) | (203) | (43) | 97,576 |
| Operating income | 327,525 | 181 | (27,397) | - | (11,802) | (4,169) | 284,338 |
| Net income/(loss) | 281,105 | 181 | (27,397) | - | (11,802) | (4,202) | 237,885 |
| Summary condensed consolidated statement of financial position | |||||||
| ($ in thousands) | June 30, 2024 | December 31, 2023 | |||||
| Total assets | 6,120,686 | 5,837,394 | |||||
| Total liabilities | 2,888,384 | 2,629,614 | |||||
| Total Burford Capital Limited equity | 2,303,187 | 2,290,858 | |||||
| Non-controlling interests | 929,115 | 916,922 | |||||
| Total shareholders' equity | 3,232,302 | 3,207,780 | |||||
| Basic ordinary shares outstanding | 219,412,747 | 218,962,441 | |||||
| Total shareholders' equity attributable to Burford Capital Limited per basic ordinary share | 10.50 | 10.46 | |||||
| Total shareholders' equity per basic ordinary share | 14.73 | 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 | 6,120,686 | (665,252) | (699,041) | (201,022) | (80,187) | 4,475,184 |
| Total liabilities | 2,888,384 | - | (699,041) | (80) | (17,266) | 2,171,997 |
| Total shareholders' equity | 3,232,302 | (665,252) | - | (200,942) | (62,921) | 2,303,187 |
| (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 June 30, 2024
| (GAAP) | (Non-GAAP) | |||||
|---|---|---|---|---|---|---|
| ($ in thousands) | Consolidated | Eliminations and adjustments | Burford-only | Other funds | BOF-C | Group-wide |
| Capital provision-direct | 179,391 | (24,727) | 154,664 | 37,574 | 24,523 | 216,761 |
| Capital provision-indirect | 12,492 | (10,410) | 2,082 | 10,410 | - | 12,492 |
| Post-settlement | - | - | - | 24,668 | - | 24,668 |
| Total realizations | 191,883 | (35,137) | 156,746 | 72,652 | 24,523 | 253,921 |
| Three months ended June 30, 2023 | ||||||
| (GAAP) | (Non-GAAP) | |||||
| ($ in thousands) | Consolidated | Eliminations and adjustments | Burford-only | Other funds | BOF-C | Group-wide |
| Capital provision-direct | 130,520 | 2,677 | 133,197 | 22,986 | 17,328 | 173,511 |
| Capital provision-indirect | 27,064 | (22,605) | 4,459 | 22,290 | - | 26,749 |
| Post-settlement | - | - | - | 79,576 | - | 79,576 |
| Total realizations | 157,584 | (19,928) | 137,656 | 124,852 | 17,328 | 279,836 |
| Six months ended June 30, 2024 | ||||||
| (GAAP) | (Non-GAAP) | |||||
| ($ in thousands) | Consolidated | Eliminations and adjustments | Burford-only | Other funds | BOF-C | Group-wide |
| Capital provision-direct | 283,584 | (67,846) | 215,738 | 66,345 | 54,721 | 336,804 |
| Capital provision-indirect | 21,270 | (17,725) | 3,545 | 17,725 | - | 21,270 |
| Post-settlement | - | - | - | 52,502 | - | 52,502 |
| Total realizations | 304,854 | (85,571) | 219,283 | 136,572 | 54,721 | 410,576 |
| Six months ended June 30, 2023 | ||||||
| (GAAP) | (Non-GAAP) | |||||
| ($ in thousands) | Consolidated | Eliminations and adjustments | Burford-only | Other funds | BOF-C | Group-wide |
| Capital provision-direct | 246,252 | (51,309) | 194,943 | 73,376 | 52,751 | 321,070 |
| Capital provision-indirect | 39,644 | (33,089) | 6,555 | 32,774 | - | 39,329 |
| Post-settlement | - | - | - | 98,256 | - | 98,256 |
| Total realizations | 285,896 | (84,398) | 201,498 | 204,406 | 52,571 | 458,655 |
Reconciliation of components of deployments from a consolidated basis to a Group-wide basis
Three months ended June 30, 2024
| (GAAP) | (Non-GAAP) | |||||
|---|---|---|---|---|---|---|
| ($ in thousands) | Consolidated | Eliminations and adjustments | Burford-only | Other funds | BOF-C | Group-wide |
| Capital provision-direct | 169,229 | (37,484) | 131,745 | 4,823 | 40,942 | 177,510 |
| Capital provision-indirect | 8,112 | (6,759) | 1,353 | 6,760 | - | 8,113 |
| Post-settlement | - | - | - | 8,821 | - | 8,821 |
| Total deployments | 177,341 | (44,243) | 133,098 | 20,404 | 40,942 | 194,444 |
| Three months ended June 30, 2023 | ||||||
| (GAAP) | (Non-GAAP) | |||||
| ($ in thousands) | Consolidated | Eliminations and adjustments | Burford-only | Other funds | BOF-C | Group-wide |
| Capital provision-direct | 246,840 | (65,387) | 181,453 | 6,070 | 58,504 | 246,027 |
| Capital provision-indirect | 78,794 | (65,662) | 13,132 | 65,662 | - | 78,794 |
| Post-settlement | - | - | - | 31,939 | - | 31,939 |
| Total deployments | 325,634 | (131,049) | 194,585 | 103,671 | 58,504 | 356,760 |
| Six months ended June 30, 2024 | ||||||
| (GAAP) | (Non-GAAP) | |||||
| ($ in thousands) | Consolidated | Eliminations and adjustments | Burford-only | Other funds | BOF-C | Group-wide |
| Capital provision-direct | 244,019 | (53,193) | 190,826 | 7,363 | 57,551 | 255,740 |
| Capital provision-indirect | 58,725 | (48,937) | 9,788 | 48,938 | - | 58,726 |
| Post-settlement | - | - | - | 29,528 | - | 29,528 |
| Total deployments | 302,744 | (102,130) | 200,614 | 85,829 | 57,551 | 343,994 |
| Six months ended June 30, 2023 | ||||||
| (GAAP) | (Non-GAAP) | |||||
| ($ in thousands) | Consolidated | Eliminations and adjustments | Burford-only | Other funds | BOF-C | Group-wide |
| Capital provision-direct | 331,525 | (83,079) | 248,446 | 12,983 | 75,956 | 337,385 |
| Capital provision-indirect | 112,794 | (93,995) | 18,799 | 93,995 | - | 112,794 |
| Post-settlement | - | - | - | 35,806 | - | 35,806 |
| Total deployments | 444,319 | (177,074) | 267,245 | 142,784 | 75,956 | 485,985 |
Reconciliation of quarterly consolidated
capital provision-direct deployments to quarterly Burford-only capital provision-direct deployments
For the three months ended
Eliminations and adjustments
| ($ in thousands) | Consolidated | Burford-only | Other funds | BOF-C | Group-wide | |
|---|---|---|---|---|---|---|
| June 30, 2024 | 169,229 | (37,484) | 131,745 | 4,823 | 40,942 | 177,510 |
| March 31, 2024 | 74,790 | (15,710) | 59,080 | 2,540 | 16,609 | 78,229 |
| December 31, 2023 | 104,678 | (26,915) | 77,763 | 8,317 | 24,577 | 110,657 |
| September 30, 2023 | 69,690 | (13,704) | 55,986 | 4,379 | 21,819 | 82,184 |
| June 30, 2023 | 246,840 | (65,387) | 181,453 | 6,070 | 58,504 | 246,027 |
| March 31, 2023 | 84,685 | (17,692) | 66,993 | 6,913 | 17,452 | 91,358 |
| December 31, 2022 | 223,920 | (42,233) | 181,687 | 9,630 | 42,517 | 233,834 |
| September 30, 2022 | 197,916 | (44,627) | 153,289 | 6,277 | 45,155 | 204,721 |
| June 30, 2022 | 92,445 | (22,273) | 70,172 | 8,926 | 21,291 | 100,389 |
Reconciliation of consolidated deployment multiple to Burford-only deployment multiple
Eliminations and adjustments
| ($ in thousands) | Consolidated | Burford-only | |
|---|---|---|---|
| Capital provision-direct for three months ended June 30, 2024 | 169,229 | (37,484) | 131,745 |
| Capital provision-direct for three months ended March 31, 2024 | 74,790 | (15,710) | 59,080 |
| Deployment multiple | 2.3 | 2.2 |
Reconciliation of consolidated proceeds from capital provision assets to Burford-only cash receipts
| ($ in thousands) | Three months ended June 30, 2024 | Three months ended June 30, 2023 |
|---|---|---|
| Consolidated proceeds from capital provision assets | 125,344 | 163,522 |
| Less: Elimination of third-party interests | (36,841) | (26,950) |
| Burford-only total proceeds from capital provision assets | 88,503 | 136,572 |
| Burford-only proceeds from capital provision-direct assets | 86,328 | 135,579 |
| Burford-only proceeds from capital provision-indirect assets | 2,175 | 993 |
| Burford-only total proceeds from capital provision assets | 88,503 | 136,572 |
| Consolidated asset management income | 1,644 | 1,894 |
| Plus: Eliminated income from funds | 9,843 | 3,790 |
| Burford-only asset management income | 11,487 | 5,684 |
| Less: Non-cash adjustments (1) | (495) | 5,358 |
| Burford-only proceeds from asset management income | 10,992 | 11,042 |
| Burford-only proceeds from marketable security interest and dividends | 5,093 | 682 |
| Burford-only proceeds from other income | 2,775 | 1,485 |
| Burford-only proceeds from other items | 7,868 | 2,167 |
| Cash receipts | 107,363 | 149,781 |
| ($ in thousands) | Six months ended June 30, 2024 | Six months ended June 30, 2023 |
| Consolidated proceeds from capital provision assets | 372,905 | 308,007 |
| Less: Elimination of third-party interests | (156,877) | (87,513) |
| Burford-only total proceeds from capital provision assets | 216,028 | 220,494 |
| Burford-only proceeds from capital provision-direct assets | 199,250 | 213,321 |
| Burford-only proceeds from capital provision-indirect assets | 16,778 | 7,173 |
| Burford-only total proceeds from capital provision assets | 216,028 | 220,494 |
| Consolidated asset management income | 3,507 | 3,891 |
| Plus: Eliminated income from funds | 14,653 | 21,150 |
| Burford-only asset management income | 18,160 | 25,041 |
| Less: Non-cash adjustments (1) | (2,692) | (1,728) |
| Burford-only proceeds from asset management income | 15,468 | 23,313 |
| Burford-only proceeds from marketable security interest and dividends | 10,569 | 1,563 |
| Burford-only proceeds from other income | 2,992 | 1,568 |
| Burford-only proceeds from other items | 13,561 | 3,131 |
| Cash receipts | 245,057 | 246,938 |
Reconciliation of quarterly consolidated cash receipts to Burford-only cash receipts
| ($ in thousands) | Three months ended June 30, 2024 | Three months ended March 31, 2024 | ||||
|---|---|---|---|---|---|---|
| Consolidated proceeds from capital provision assets | 125,344 | 247,561 | ||||
| Less: Elimination of third-party interests | (36,841) | (120,036) | ||||
| Burford-only total proceeds from capital provision assets | 88,503 | 127,525 | ||||
| Burford-only proceeds from capital provision-direct assets | 86,328 | 112,922 | ||||
| Burford-only proceeds from capital provision-indirect assets | 2,175 | 14,603 | ||||
| Burford-only total proceeds from capital provision assets | 88,503 | 127,525 | ||||
| Consolidated asset management income | 1,644 | 1,863 | ||||
| Plus: Eliminated income from funds | 9,843 | 4,810 | ||||
| Burford-only asset management income | 11,487 | 6,673 | ||||
| Less: Non-cash adjustments (1) | (495) | 2,197 | ||||
| Burford-only proceeds from asset management income | 10,992 | 4,476 | ||||
| Burford-only proceeds from marketable security interest and dividends | 5,093 | 5,476 | ||||
| Burford-only proceeds from other income | 2,775 | 217 | ||||
| Burford-only proceeds from other items | 7,868 | 5,693 | ||||
| Cash receipts | 107,363 | 137,694 | ||||
| ($ in thousands) | Three months ended December 31, 2023 | Three months ended September 30, 2023 | ||||
| Consolidated proceeds from capital provision assets | 119,208 | 132,147 | ||||
| Less: Elimination of third-party interests | (22,709) | (7,074) | ||||
| Burford-only total proceeds from capital provision assets | 96,499 | 125,073 | ||||
| Burford-only proceeds from capital provision-direct assets | 95,490 | 105,915 | ||||
| Burford-only proceeds from capital provision-indirect assets | 1,009 | 19,158 | ||||
| Burford-only total proceeds from capital provision assets | 96,499 | 125,073 | ||||
| Consolidated asset management income | 1,875 | 1,876 | ||||
| Plus: Eliminated income from funds | 20,655 | 14,265 | ||||
| Burford-only asset management income | 22,530 | 16,141 | ||||
| Less: Non-cash adjustments (1) | (19,254) | (10,409) | ||||
| Burford-only proceeds from asset management income | 3,276 | 5,732 | ||||
| Burford-only proceeds from marketable security interest and dividends | 2,672 | 2,062 | ||||
| Burford-only proceeds from other income | 7,030 | (73) | ||||
| Burford-only proceeds from other items | 9,702 | 1,989 | ||||
| Cash receipts | 109,477 | 132,794 | ||||
| ($ in thousands) | Three months ended June 30, 2023 | Three months ended March 31, 2023 | ||||
| Consolidated proceeds from capital provision assets | 163,522 | 144,485 | ||||
| Less: Elimination of third-party interests | (26,950) | (60,563) | ||||
| Burford-only total proceeds from capital provision assets | 136,572 | 83,922 | ||||
| Burford-only proceeds from capital provision-direct assets | 135,579 | 77,742 | ||||
| Burford-only proceeds from capital provision-indirect assets | 993 | 6,180 | ||||
| Burford-only total proceeds from capital provision assets | 136,572 | 83,922 | ||||
| Consolidated asset management income | 1,894 | 1,997 | ||||
| Plus: Eliminated income from funds | 3,790 | 17,360 | ||||
| Burford-only asset management income | 5,684 | 19,357 | ||||
| Less: Non-cash adjustments (1) | 5,358 | (7,086) | ||||
| Burford-only proceeds from asset management income | 11,042 | 12,271 | ||||
| Burford-only proceeds from marketable security interest and dividends | 682 | 881 | ||||
| Burford-only proceeds from other income | 1,485 | 83 | ||||
| Burford-only proceeds from other items | 2,167 | 964 | ||||
| Cash receipts | 149,781 | 97,157 | ||||
| ($ in thousands) | Three months ended December 31, 2022 | Three months ended September 30, 2022 | ||||
| Consolidated proceeds from capital provision assets | 105,464 | 173,781 | ||||
| Less: Elimination of third-party interests | (11,720) | (48,686) | ||||
| Burford-only total proceeds from capital provision assets | 93,744 | 125,095 | ||||
| Burford-only proceeds from capital provision-direct assets | 93,137 | 120,988 | ||||
| Burford-only proceeds from capital provision-indirect assets | 607 | 4,107 | ||||
| Burford-only total proceeds from capital provision assets | 93,744 | 125,095 | ||||
| Consolidated asset management income | 2,025 | 1,583 | ||||
| Plus: Eliminated income from funds | 12,733 | 2,976 | ||||
| Burford-only asset management income | 14,758 | 4,559 | ||||
| Less: Non-cash adjustments (1) | (11,794) | (2,980) | ||||
| Burford-only proceeds from asset management income | 2,964 | 1,578 | ||||
| Burford-only proceeds from marketable security interest and dividends | 1,740 | 878 | ||||
| Burford-only proceeds from other income | 66 | 2,466 | ||||
| Burford-only proceeds from other items | 1,806 | 3,344 | ||||
| Cash receipts | 98,514 | 130,017 | ||||
| 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 | 2,229,053 | (559,159) | 1,669,894 | 394,049 | 464,510 | 2,528,453 |
| Plus: Fair value adjustments | 2,771,019 | (946,304) | 1,824,715 | 169,291 | 221,497 | 2,215,503 |
| Fair value | 5,000,072 | (1,505,463) | 3,494,609 | 563,340 | 686,007 | 4,743,956 |
| Capital provision assets - indirect: | ||||||
| Deployed cost | 211,016 | (177,932) | 33,084 | 177,932 | - | 211,016 |
| Plus: Fair value adjustments | 27,545 | (20,373) | 7,172 | 16,944 | - | 24,116 |
| Fair value | 238,561 | (198,305) | 40,256 | 194,876 | - | 235,132 |
| Total capital provision assets | 5,238,633 | (1,703,768) | 3,534,865 | 758,216 | 686,007 | 4,979,088 |
| Post-settlement assets: | ||||||
| Deployed cost | - | - | - | 237,469 | - | 237,469 |
| Plus: Fair value adjustments | - | - | - | 51,055 | - | 51,055 |
| Fair value | - | - | - | 288,524 | - | 288,524 |
| Undrawn commitments: | ||||||
| Capital provision-direct | 1,956,479 | (435,405) | 1,521,074 | 110,686 | 426,574 | 2,058,334 |
| Capital provision-indirect | 12,859 | (10,716) | 2,143 | 10,716 | - | 12,859 |
| Post-settlement | - | - | - | 44,498 | - | 44,498 |
| Total undrawn commitments | 1,969,338 | (446,121) | 1,523,217 | 165,900 | 426,574 | 2,115,691 |
| Total portfolio | 7,207,971 | (2,149,889) | 5,058,082 | 1,212,640 | 1,112,581 | 7,383,303 |
| (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
| June 30, 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 | 390,673 | (40,973) | 349,700 | 220,549 | (24,634) | 195,915 |
| Marketable securities | 92,924 | - | 92,924 | 107,561 | - | 107,561 |
| Total cash and cash equivalents and marketable securities | 483,597 | (40,973) | 442,624 | 328,110 | (24,634) | 303,476 |
Reconciliation of consolidated to Burford-only due from settlement of capital provision assets
| June 30, 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 | 199,997 | - | 199,997 | 265,540 | (80,273) | 185,267 |
Reconciliation of consolidated to Burford-only net realized gains/(losses) 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 |
| Net realized gains/(losses) for the three months ended June 30, 2024 | 117,471 | (18,318) | 99,153 | 99,153 | - |
| Net realized gains/(losses) for the three months ended June 30, 2023 | 64,323 | (5,542) | 58,781 | 58,871 | - |
| (GAAP) | (Non-GAAP) | ||||
| ($ in thousands) | Consolidated | Eliminations and adjustments | Burford-only total | Burford-only Capital provision-direct | Burford-only Capital provision-indirect |
| Net realized gains/(losses) for the six months ended June 30, 2024 | 175,333 | (46,286) | 129,047 | 127,907 | 1,140 |
| Net realized gains/(losses) for the six months ended June 30, 2023 | 133,765 | (39,371) | 94,394 | 94,394 | - |
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 June 30, 2024 | 39,070 | (20,207) | 18,863 | 17,729 | 1,134 |
| Unrealized gains/(losses) for the three months ended June 30, 2023 | (28,821) | 5,983 | (22,838) | (23,152) | 314 |
| (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 six months ended June 30, 2024 | 25,369 | (15,594) | 9,775 | 8,363 | 1,412 |
| Unrealized gains/(losses) for the six months ended June 30, 2023 | 373,992 | (120,174) | 253,818 | 251,989 | 1,829 |
Reconciliation of consolidated undrawn commitments to Burford-only undrawn commitments
Elimination of third-party interests
| ($ in thousands) | Consolidated | Burford-only | |
|---|---|---|---|
| Definitive | 887,592 | (212,942) | 674,650 |
| Discretionary | 1,026,386 | (222,463) | 803,923 |
| Total legal finance undrawn commitments | 1,913,978 | (435,405) | 1,478,573 |
| Legal risk (definitive) | 42,501 | - | 42,501 |
| Total capital provision-direct undrawn commitments | 1,956,479 | (435,405) | 1,521,074 |
| Capital provision-indirect undrawn commitments | 12,859 | (10,716) | 2,143 |
| Total capital provision undrawn commitments | 1,969,338 | (446,121) | 1,523,217 |
| December 31,2023 | |||
| Elimination of third-party interests | |||
| ($ in thousands) | Consolidated | Burford-only | |
| Definitive | 768,311 | (188,313) | 579,998 |
| Discretionary | 977,733 | (211,196) | 766,537 |
| Total legal finance undrawn commitments | 1,746,044 | (399,509) | 1,346,535 |
| Legal risk (definitive) | 55,583 | (6,057) | 49,526 |
| Total capital provision-direct undrawn commitments | 1,801,627 | (405,566) | 1,396,061 |
| Capital provision-indirect undrawn commitments | 71,662 | (59,718) | 11,944 |
| Total capital provision undrawn commitments | 1,873,289 | (465,284) | 1,408,005 |
Reconciliation of tangible book value attributable to Burford Capital Limited per ordinary share
| ($ in thousands, except share data) | June 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Burford Capital Limited equity | 2,303,187 | 2,290,858 |
| Less: Goodwill | ( 133 ,957) | ( 133 ,965) |
| Tangible book value attributable to Burford Capital Limited | 2,169,230 | 2,156,893 |
| Basic ordinary shares outstanding | 219,412,747 | 218,962,441 |
| Tangible book value attributable to Burford Capital Limited per ordinary share | $9.89 | $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 represent cash generated during the reporting period from our capital provision assets, asset management income and certain other items, 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. |
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