3Q24 Results & Quarterly Report
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Burford Capital Reports Third 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 nine months ended September 30, 2024 . In addition, Burford has made available an accompanying three and nine months ended September 30, 2024 results presentation on its website at http://investors.burfordcapital.com and at http://www.rns-pdf.londonstockexchange.com/rns/3692L_1-2024-11-7.pdf .
Christopher Bogart, Chief Executive Officer of Burford Capital, commented:
"We are having a great year as we enjoy the long-awaited momentum in the portfolio. We have generated $556 million in Burford-only cash receipts YTD24 and $310 million just in 3Q24, setting new records. Our core portfolio net realized gains are already in line with the previous annual peak, with $184 million in YTD24 up 49% from YTD23, and $56 million in 3Q24, around twice the level of the 2023 and 2022 third quarters. Net realized gains in YTD24 reflect a ROIC of 94% on realizations which remains above our historical track record. We reported Burford-only net income attributable to shareholders of $136 million in 3Q24 and grew tangible book value to more than $10 per share for the first time. And despite the team being focused on the very active portfolio, new commitments are up substantially in 3Q24 over 3Q23."
Consolidated financial results
Summary statements of operations
| Nine months ended September 30, | Three months ended September 30, | |||||
|---|---|---|---|---|---|---|
| Consolidated (US GAAP) ($ in thousands, except per share data) | 2024 | 2023 | % change | 2024 | 2023 | % change |
| Capital provision income | 469,494 | 1,016,113 | -54% | 270,988 | 504,513 | -46% |
| Asset management income | 6,654 | 5,767 | 15% | 3,147 | 1,876 | 68% |
| Total revenues | 453,062 | 794,329 | -43% | 249,114 | 368,873 | -32% |
| Total operating expenses | 115,182 | 150,999 | -24% | 46,893 | 53,068 | -12% |
| Net income/(loss) attributable to Burford Capital Limited shareholders | 159,452 | 510,427 | -69% | 135,643 | 272,542 | -50% |
| Per diluted ordinary share | 0.71 | 2.29 | -69% | 0.61 | 1.22 | -50% |
| Summary statements of financial position | ||||||
| Consolidated (US GAAP) ($ in thousands, except per share data) | September 30, 2024 | December 31, 2023 | % change | |||
| Capital provision assets | 5,356,300 | 5,045,388 | 6% | |||
| Total Burford Capital Limited equity | 2,432,109 | 2,290,858 | 6% | |||
| Book value per ordinary share | 11.08 | 10.46 | 6% | |||
| Non-controlling interests | 865,242 | 916,922 | -6% | |||
| Total shareholders' equity | 3,297,351 | 3,207,780 | 3% | |||
| Total liabilities and shareholders' equity | 6,274,902 | 5,837,394 | 7% | |||
In this announcement, references to "3Q24" and "YTD24" are to Burford's financial results for the three and nine months ended September 30, 2024, respectively, and references to "3Q23" and "YTD23" are to Burford's financial results for the three and nine months ended September 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 nine months ended September 30, 2024 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2024. In addition, in this announcement, the term "core portfolio" refers to Burford-only capital provision direct. 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
| Nine months ended September 30, | Three months ended September 30, | |||||
|---|---|---|---|---|---|---|
| Burford-only (non-GAAP) ($ in thousands) | 2024 | 2023 | % change | 2024 | 2023 | % change |
| Net realized gains/(losses) | 184,164 | 123,539 | 49% | 56,257 | 29,145 | 93% |
| Realizations | 380,442 | 274,101 | 39% | 164,704 | 79,158 | 108% |
| Cash receipts 2 | 555,548 | 379,732 | 46% | 310,491 | 132,794 | 134% |
| Deployments | 263,103 | 304,432 | -14% | 72,277 | 55,986 | 29% |
| New commitments | 443,451 | 448,682 | -1% | 100,861 | 17,648 | 472% |
1 Represents Burford-only capital provision-direct, unless noted otherwise.
| Group-wide (non-GAAP) ($ in thousands) | September 30, 2024 | December 31, 2023 | % change | |||
|---|---|---|---|---|---|---|
| Total portfolio | 7,478,292 | 7,170,308 | 4% | |||
| Realizations in YTD24 of $216 million (YTD23: $195 million) | ||||||
| § | Realizations are on a record annual pace in 2024 | |||||
| o | Core portfolio realizations of $380 million in YTD24 up 39% compared to YTD23 and diversified across 40 assets | |||||
| o | We continue to see progress in clearing the pandemic-driven backlog with about half of the capital provision assets generating realizations in YTD24 being from 2020 and prior vintages | |||||
| o | During YTD24, 10 assets have each generated more than $10 million in realizations, with five of those assets each delivering $20 million or more | |||||
| § | Net realized gains through 3Q24 are already near record annual levels | |||||
| o | Core portfolio net realized gains of $184 million in YTD24 up 49% compared to YTD23, already in line with the previous annual peak of $186 million achieved in the full year 2023 | |||||
| o | YTD24 net realized gains reflect a ROIC of 94% on YTD24 realizations which remains above our historical track record | |||||
| § | Record cash generation underscores portfolio progress and healthy liquidity | |||||
| o | Cash receipts of $310 million in 3Q24 and $556 million in YTD24 driven by realizations, collection of receivables and asset management income | |||||
| § | New business remains solid | |||||
| o | Core portfolio new commitments of $443 million and deployments of $263 million in YTD24 remain on a consistent pace even as substantial portfolio activity places demands on team resources | |||||
| o | Definitive undrawn commitments of $727 million at September 30, 2024 up 25% in YTD24 and support deployment activity looking forward | |||||
| Selected financial metrics | ||||||
| Nine months ended September 30, | Three months ended September 30, | |||||
| Burford-only (non-GAAP) ($ in thousands, except per share data) | 2024 | 2023 | % change | 2024 | 2023 | % change |
| Total revenues | 394,688 | 725,927 | -46% | 226,033 | 344,013 | -34% |
| Total operating expenses | 112,977 | 150,377 | -25% | 46,011 | 52,801 | -13% |
| Operating income/(loss) | 281,711 | 575,550 | -51% | 180,022 | 291,212 | -38% |
| Net income/(loss) | 159,452 | 510,427 | -69% | 135,643 | 272,542 | -50% |
| Burford-only (non-GAAP) ($ in thousands, except per share data) | September 30, 2024 | December 31, 2023 | $ change | % change | ||
| Tangible book value attributable to Burford Capital Limited | 2,298,094 | 2,156,893 | 141,201 | 7% | ||
| Tangible book value attributable to Burford Capital Limited per ordinary share | 10.47 | 9.85 | 0.62 | 6% | ||
| § | Net income in 3Q24 accelerated relative to the first half of the year | |||||
| o | 3Q24 net income attributable to Burford Capital Limited shareholders of $136 million, or $0.61 per diluted share | |||||
| § | 3Q23 and YTD23 results benefited from substantial positive impact of YPF-related capital provision income, which impacts 3Q24 and YTD24 comparisons | |||||
| § | Within total revenues, 3Q24 was a strong quarter for capital provision income, which is up significantly from prior year, excluding YPF-related assets impact | |||||
| o | 3Q24 Burford-only capital provision income of $205 million was driven, among other things, by positive impact across the major valuation inputs of discount rates, case milestones and duration | |||||
| o | Excluding YPF-related assets, which heavily impacted 2023 results, Burford-only total net realized and unrealized gains were up 200% in 3Q24 and 17% in YTD24 compared to 3Q23 and YTD23, respectively | |||||
| Selected portfolio metrics | ||||||
| Burford-only (non-GAAP) ($ in thousands) | September 30, 2024 | December 31, 2023 | $ change | % change | ||
| Deployed cost | 1,645,667 | 1,573,531 | 72,136 | 5% | ||
| Plus: Fair value adjustments | 1,967,677 | 1,814,070 | 153,607 | 8% | ||
| Fair value | 3,613,344 | 3,387,601 | 225,743 | 7% | ||
| Undrawn commitments | 1,562,125 | 1,396,061 | 166,064 | 12% | ||
| Total capital provision-direct portfolio | 5,175,469 | 4,783,662 | 391,807 | 8% | ||
| Total capital provision portfolio 1 | 5,215,932 | 4,840,117 | 375,815 | 8% | ||
1 Represents capital provision-direct and capital provision-indirect.
| § | Strong returns on realizations in YTD24 drove an increase in the cumulative ROIC since inception from Burford-only capital provision-direct assets from 82% at December 31, 2023 to 84%, while cumulative IRR declined by 40 basis points to 26% reflecting extended duration of certain assets (December 31, 2023: 27%) | |||
|---|---|---|---|---|
| Liquidity and capital | ||||
| Burford-only (non-GAAP) ($ in thousands) | September 30, 2024 | December 31, 2023 | $ change | % change |
| Liquidity | ||||
| Cash and cash equivalents | 553,158 | 195,915 | 357,243 | 182% |
| Marketable securities | 75,801 | 107,561 | (31,760) | -30% |
| Total liquidity | 628,959 | 303,476 | 325,483 | 107% |
| Due from settlement of capital provision assets | 64,489 | 185,267 | (120,778) | -65% |
| § | Burford-only cash and cash equivalents and marketable securities of $629 million at September 30, 2024 (December 31, 2023: $303 million) | |||
| o | Strong liquidity position at September 30, 2024 augmented by $556 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 $64 million at September 30, 2024 (December 31, 2023: $185 million), with 95% of December 31, 2023 balance collected in YTD24 | |||
| § | Total debt outstanding of $1.8 billion at September 30, 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 10.00am EST / 3.00pm GMT on Thursday, November 7, 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 1730316 . To minimize the risk of delayed access, participants are urged to dial into the conference call by 9.40am EST / 2.40pm GMT . A live webcast of the call will also be available at https://events.q4inc.com/attendee/431913320 , and pre-registration at that link is encouraged. An accompanying 3Q24 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/431913320 .
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 financial statements and reconciliations The tables below set forth summaries of the condensed consolidated and Burford-only statements of operations for the three and nine months ended September 30, 2024 and 2023, the condensed consolidated and Burford-only statements of financial position at September 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 September 30, | Nine months ended September 30, | |||
|---|---|---|---|---|
| ($ in thousands) | 2024 | 2023 | 2024 | 2023 |
| Revenues | ||||
| Capital provision income/(loss) | 270,988 | 504,513 | 469,494 | 1,016,113 |
| (Less)/Plus: Third-party interests in capital provision assets | (35,152) | (140,412) | (46,640) | (235,944) |
| Asset management income/(loss) | 3,147 | 1,876 | 6,654 | 5,767 |
| Services and other income/(loss) | 10,131 | 2,896 | 23,554 | 8,393 |
| Total revenues | 249,114 | 368,873 | 453,062 | 794,329 |
| Total operating expenses | 46,893 | 53,068 | 115,182 | 150,999 |
| Operating income/(loss) | 202,221 | 315,805 | 337,880 | 643,330 |
| Finance costs and loss on debt extinguishment | 34,399 | 29,013 | 101,432 | 70,690 |
| Foreign currency transactions (gains)/losses | (1,510) | (9,811) | (951) | (21,149) |
| Income/(loss) before income taxes | 169,332 | 296,603 | 237,399 | 593,789 |
| Benefit from/(provision for) income taxes | (11,468) | 531 | (21,761) | (15,550) |
| Net income/(loss) | 157,864 | 297,134 | 215,638 | 578,239 |
| Net income/(loss) attributable to Burford Capital Limited shareholders | 135,643 | 272,542 | 159,452 | 510,427 |
Net income/(loss) attributable to Burford Capital Limited shareholders per ordinary share
| Three months ended September 30, | Nine months ended September 30, | ||||||
|---|---|---|---|---|---|---|---|
| ($ in thousands) | 2024 | 2023 | 2024 | 2023 | |||
| Basic | $0.62 | $1.24 | $0.73 | $2.33 | |||
| Diluted | $0.61 | $1.22 | $0.71 | $2.29 | |||
| Summary Burford-only statement of operations | |||||||
| Three months ended September 30, | Nine months ended September 30, | ||||||
| ($ in thousands) | 2024 | 2023 | 2024 | 2023 | |||
| Revenues | |||||||
| Capital provision income | 204,961 | 324,995 | 342,224 | 676,402 | |||
| Asset management income | 11,110 | 16,141 | 29,270 | 41,182 | |||
| Services and other income | 9,962 | 2,877 | 23,194 | 8,343 | |||
| Total revenues | 226,033 | 344,013 | 394,688 | 725,927 | |||
| Operating expenses | 46,011 | 52,801 | 112,977 | 150,377 | |||
| Operating income | 180,022 | 291,212 | 281,711 | 575,550 | |||
| Net income | 135,643 | 272,542 | 159,452 | 510,427 | |||
| Net income per share: | |||||||
| Basic | $0.62 | $1.24 | $0.73 | $2.33 | |||
| Diluted | $0.61 | $1.22 | $0.71 | $2.29 | |||
| Three months ended September 30, 2024 | |||||||
| (GAAP) | (Non-GAAP) | ||||||
| Elimination of third-party interests | |||||||
| ($ in thousands) | Consolidated | BOF-C | Colorado | Advantage Fund | Other | Burford-only | |
| Capital provision income | 270,988 | (18,742) | (34,546) | (10,257) | (2,482) | 204,961 | |
| (Less): Third-party interests in capital provision assets | (35,152) | - | 34,518 | - | 634 | - | |
| Asset management income | 3,147 | 7,963 | - | - | - | 11,110 | |
| Services and other income | 10,131 | (165) | - | - | (4) | 9,962 | |
| Total revenues | 249,114 | (10,944) | (28) | (10,257) | (1,852) | 226,033 | |
| Operating expenses | 46,893 | 62 | (28) | (96) | (820) | 46,011 | |
| Operating income | 202,221 | (11,006) | - | (10,161) | (1,032) | 180,022 | |
| Net income/(loss) | 157,864 | (11,006) | - | (10,161) | (1,054) | 135,643 | |
| Three months ended September 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 | 540,513 | (845) | (36,193) | (140,690) | (8,368) | 6,578 | 324,995 |
| (Less): Third-party interests in capital provision assets | (140,412) | - | - | 140,699 | - | (287) | - |
| Asset management income | 1,876 | 16 | 14,249 | - | - | - | 16,141 |
| Services and other income | 2,896 | (1) | (3) | - | - | (15) | 2,877 |
| Total revenues | 368,873 | (830) | (21,947) | 9 | (8,368) | 6,276 | 344,013 |
| Operating expenses | 53,068 | (637) | 73 | 9 | (76) | 364 | 52,801 |
| Operating income | 315,805 | (193) | (22,020) | - | (8,292) | 5,912 | 291,212 |
| Net income/(loss) | 297,134 | (193) | (22,020) | - | (8,292) | 5,913 | 272,542 |
| Nine months ended September 30, 2024 | |||||||
| (GAAP) | (Non-GAAP) | ||||||
| Elimination of third-party interests | |||||||
| ($ in thousands) | Consolidated | BOF-C | Colorado | Advantage Fund | Other | Burford-only | |
| Capital provision income | 469,494 | (51,760) | (47,372) | (23,302) | (4,836) | 342,224 | |
| (Less): Third-party interests in capital provision assets | (46,640) | - | 47,272 | - | (632) | - | |
| Asset management income | 6,654 | 22,616 | - | - | - | 29,270 | |
| Services and other income | 23,554 | (350) | - | - | (10) | 23,194 | |
| Total revenues | 453,062 | (29,494) | (100) | (23,302) | (5,478) | 394,688 | |
| Operating expenses | 115,182 | 152 | (100) | (370) | (1,887) | 112,977 | |
| Operating income | 337,880 | (29,646) | - | (22,932) | (3,591) | 281,711 | |
| Net income/(loss) | 215,638 | (29,646) | - | (22,932) | (3,608) | 159,452 | |
| Nine months ended September 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 | 1,016,113 | (1,052) | (84,429) | (235,731) | (20,373) | (1,874) | 676,402 |
| (Less): Third-party interests in capital provision assets | (235,944) | - | - | 235,710 | - | 234 | - |
| Asset management income | 5,767 | 108 | 35,307 | - | - | - | 41,182 |
| Services and other income | 8,393 | (1) | (5) | - | - | (44) | 8,343 |
| Total revenues | 794,329 | (945) | (49,127) | (21) | (20,373) | (2,064) | 725,927 |
| Operating expenses | 150,999 | (933) | 290 | (21) | (279) | (321) | 150,377 |
| Operating income | 643,330 | (12) | (49,417) | - | (20,094) | (1,743) | 575,550 |
| Net income/(loss) | 578,239 | (12) | (49,417) | - | (20,094) | (1,711) | 510,427 |
| Summary condensed consolidated statement of financial position | |||||||
| ($ in thousands) | September 30, 2024 | December 31, 2023 | |||||
| Total assets | 6,274,902 | 5,837,394 | |||||
| Total liabilities | 2,977,551 | 2,629,614 | |||||
| Total Burford Capital Limited equity | 2,432,109 | 2,290,858 | |||||
| Non-controlling interests | 865,242 | 916,922 | |||||
| Total shareholders' equity | 3,297,351 | 3,207,780 | |||||
| Basic ordinary shares outstanding | 219,421,376 | 218,962,441 | |||||
| Total shareholders' equity attributable to Burford Capital Limited per basic ordinary share | 11.08 | 10.46 | |||||
| Total shareholders' equity per basic ordinary share | 15.03 | 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 | 6,274,902 | (602,059) | (733,574) | (199,160) | (81,977) | 4,658,132 |
| Total liabilities | 2,977,551 | - | (733,574) | (52) | (17,902) | 2,226,023 |
| Total shareholders' equity | 3,297,351 | (602,059) | - | (199,108) | (64,075) | 2,432,109 |
| (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 September 30, 2024
| (GAAP) | (Non-GAAP) | |||||
|---|---|---|---|---|---|---|
| ($ in thousands) | Consolidated | Eliminations and adjustments | Burford-only | Other funds | BOF-C | Group-wide |
| Capital provision-direct | 231,891 | (67,187) | 164,704 | 58,567 | 33,431 | 256,702 |
| Capital provision-indirect | 22,274 | (18,562) | 3,712 | 18,562 | - | 22,274 |
| Post-settlement | - | - | - | 34,940 | - | 34,940 |
| Total realizations | 254,165 | (85,749) | 168,416 | 112,069 | 33,431 | 313,916 |
| Three months ended September 30, 2023 | ||||||
| (GAAP) | (Non-GAAP) | |||||
| ($ in thousands) | Consolidated | Eliminations and adjustments | Burford-only | Other funds | BOF-C | Group-wide |
| Capital provision-direct | 89,162 | (10,004) | 79,158 | 16,539 | 12,243 | 107,940 |
| Capital provision-indirect | 19,575 | (6,228) | 13,347 | 6,228 | - | 19,575 |
| Post-settlement | - | - | - | 20,050 | - | 20,050 |
| Total realizations | 108,737 | (16,232) | 92,505 | 42,817 | 12,243 | 147,565 |
| Nine months ended September 30, 2024 | ||||||
| (GAAP) | (Non-GAAP) | |||||
| ($ in thousands) | Consolidated | Eliminations and adjustments | Burford-only | Other funds | BOF-C | Group-wide |
| Capital provision-direct | 515,475 | (135,033) | 380,442 | 124,912 | 88,152 | 593,506 |
| Capital provision-indirect | 43,544 | (36,287) | 7,257 | 36,287 | - | 43,544 |
| Post-settlement | - | - | - | 87,442 | - | 87,442 |
| Total realizations | 559,019 | (171,320) | 387,699 | 248,641 | 88,152 | 724,492 |
| Nine months ended September 30, 2023 | ||||||
| (GAAP) | (Non-GAAP) | |||||
| ($ in thousands) | Consolidated | Eliminations and adjustments | Burford-only | Other funds | BOF-C | Group-wide |
| Capital provision-direct | 335,414 | (61,313) | 274,101 | 89,915 | 64,944 | 429,010 |
| Capital provision-indirect | 59,219 | (39,317) | 19,902 | 39,002 | - | 58,904 |
| Post-settlement | - | - | - | 118,307 | - | 118,307 |
| Total realizations | 394,633 | (100,630) | 294,003 | 247,224 | 64,944 | 606,221 |
Reconciliation of components of deployments from a consolidated basis to a Group-wide basis
Three months ended September 30, 2024
| (GAAP) | (Non-GAAP) | |||||
|---|---|---|---|---|---|---|
| ($ in thousands) | Consolidated | Eliminations and adjustments | Burford-only | Other funds | BOF-C | Group-wide |
| Capital provision-direct | 88,769 | (16,492) | 72,277 | 5,400 | 15,947 | 93,624 |
| Capital provision-indirect | 9,371 | (7,818) | 1,563 | 7,817 | - | 9,380 |
| Post-settlement | - | - | - | 10,308 | - | 10,308 |
| Total deployments | 98,150 | (24,310) | 73,840 | 23,525 | 15,947 | 113,312 |
| Three months ended September 30, 2023 | ||||||
| (GAAP) | (Non-GAAP) | |||||
| ($ in thousands) | Consolidated | Eliminations and adjustments | Burford-only | Other funds | BOF-C | Group-wide |
| Capital provision-direct | 69,690 | (13,704) | 55,986 | 4,379 | 21,819 | 82,184 |
| Capital provision-indirect | 32,257 | (26,881) | 5,376 | 26,881 | - | 32,257 |
| Post-settlement | - | - | - | 7,466 | - | 7,466 |
| Total deployments | 101,947 | (40,585) | 61,362 | 38,726 | 21,819 | 121,907 |
| Nine months ended September 30, 2024 | ||||||
| (GAAP) | (Non-GAAP) | |||||
| ($ in thousands) | Consolidated | Eliminations and adjustments | Burford-only | Other funds | BOF-C | Group-wide |
| Capital provision-direct | 332,788 | (69,685) | 263,103 | 12,763 | 73,498 | 349,364 |
| Capital provision-indirect | 68,106 | (56,755) | 11,351 | 56,755 | - | 68,106 |
| Post-settlement | - | - | - | 39,836 | - | 39,836 |
| Total deployments | 400,894 | (126,440) | 274,454 | 109,354 | 73,498 | 457,306 |
| Nine months ended September 30, 2023 | ||||||
| (GAAP) | (Non-GAAP) | |||||
| ($ in thousands) | Consolidated | Eliminations and adjustments | Burford-only | Other funds | BOF-C | Group-wide |
| Capital provision-direct | 401,215 | (96,783) | 304,432 | 17,362 | 97,775 | 419,569 |
| Capital provision-indirect | 145,051 | (120,876) | 24,175 | 120,876 | - | 145,051 |
| Post-settlement | - | - | - | 43,272 | - | 43,272 |
| Total deployments | 546,266 | (217,659) | 328,607 | 181,510 | 97,775 | 607,892 |
Reconciliation of consolidated proceeds from capital provision assets to Burford-only cash receipts
| ($ in thousands) | Three months ended September 30, 2024 | Three months ended September 30, 2023 | ||||
|---|---|---|---|---|---|---|
| Consolidated proceeds from capital provision assets | 395,943 | 132,147 | ||||
| Less: Elimination of third-party interests | (91,185) | (7,074) | ||||
| Burford-only total proceeds from capital provision assets | 340,758 | 125,073 | ||||
| Burford-only proceeds from capital provision-direct assets | 301,345 | 105,915 | ||||
| Less: Funding of financial liabilities at fair value through profit or loss | (2,583) | - | ||||
| Burford-only proceeds from capital provision-direct assets (adjusted) | 298,765 | 105,915 | ||||
| Burford-only proceeds from capital provision-indirect assets | 3,413 | 19,158 | ||||
| Burford-only total proceeds from capital provision assets | 302,175 | 125,073 | ||||
| Consolidated asset management income | 3,147 | 1,876 | ||||
| Plus: Eliminated income from funds | 7,963 | 14,265 | ||||
| Burford-only asset management income | 11,110 | 16,141 | ||||
| Less: Non-cash adjustments (1) | (9,389) | (10,409) | ||||
| Burford-only proceeds from asset management income | 1,721 | 5,732 | ||||
| Burford-only proceeds from marketable security interest and dividends | 4,567 | 2,062 | ||||
| Burford-only proceeds from other income | 2,028 | (73) | ||||
| Burford-only proceeds from other items | 6,595 | 1,989 | ||||
| Cash receipts | 310,491 | 132,794 | ||||
| ($ in thousands) | Nine months ended September 30, 2024 | Nine months ended September 30, 2023 | ||||
| Consolidated proceeds from capital provision assets | 768,848 | 440,154 | ||||
| Less: Elimination of third-party interests | (248,062) | (94,587) | ||||
| Burford-only total proceeds from capital provision assets | 520,786 | 345,567 | ||||
| Burford-only proceeds from capital provision-direct assets | 500,595 | 319,236 | ||||
| Less: Funding of financial liabilities at fair value through profit or loss | (2,583) | - | ||||
| Burford-only proceeds from capital provision-direct assets (adjusted) | 498,012 | 319,236 | ||||
| Burford-only proceeds from capital provision-indirect assets | 20,191 | 26,331 | ||||
| Burford-only total proceeds from capital provision assets | 518,203 | 345,567 | ||||
| Consolidated asset management income | 6,654 | 5,767 | ||||
| Plus: Eliminated income from funds | 22,616 | 35,415 | ||||
| Burford-only asset management income | 29,270 | 41,182 | ||||
| Less: Non-cash adjustments (1) | (12,081) | (12,137) | ||||
| Burford-only proceeds from asset management income | 17,189 | 29,045 | ||||
| Burford-only proceeds from marketable security interest and dividends | 15,136 | 3,625 | ||||
| Burford-only proceeds from other income | 5,020 | 1,495 | ||||
| Burford-only proceeds from other items | 20,156 | 5,120 | ||||
| Cash receipts | 555,548 | 379,732 | ||||
| Reconciliation of consolidated portfolio to Group-wide portfolio | ||||||
| (GAAP) | (non-GAAP) | |||||
| Elimination of | ||||||
| ($ in thousands) | Consolidated | third-party interests | Burford-only | Other funds | BOF-C | Group-wide |
| Capital provision assets - direct: | ||||||
| Deployed cost | 2,172,043 | (526,376) | 1,645,667 | 362,230 | 459,211 | 2,467,108 |
| Plus: Fair value adjustments | 2,946,300 | (978,623) | 1,967,677 | 168,275 | 227,300 | 2,363,252 |
| Fair value | 5,118,343 | (1,504,999) | 3,613,344 | 530,505 | 686,511 | 4,830,360 |
| Capital provision assets - indirect: | ||||||
| Deployed cost | 205,831 | (174,918) | 30,913 | 174,918 | - | 205,831 |
| Plus: Fair value adjustments | 32,126 | (23,156) | 8,970 | 23,156 | - | 32,126 |
| Fair value | 237,957 | (198,074) | 39,883 | 198,074 | - | 237,957 |
| Total capital provision assets | 5,356,300 | (1,703,073) | 3,653,227 | 728,579 | 686,511 | 5,068,317 |
| Post-settlement assets: | ||||||
| Deployed cost | - | - | - | 217,352 | - | 217,352 |
| Plus: Fair value adjustments | - | - | - | 44,301 | - | 44,301 |
| Fair value | - | - | - | 261,653 | - | 261,653 |
| Undrawn commitments: | ||||||
| Capital provision-direct | 1,987,200 | (425,075) | 1,562,125 | 107,578 | 416,320 | 2,086,023 |
| Capital provision-indirect | 3,479 | (2,899) | 580 | 2,899 | - | 3,479 |
| Post-settlement | - | - | - | 58,820 | - | 58,820 |
| Total undrawn commitments | 1,990,679 | (427,974) | 1,562,705 | 169,297 | 416,320 | 2,148,322 |
| Total portfolio | 7,346,979 | (2,131,047) | 5,215,932 | 1,159,529 | 1,102,831 | 7,478,292 |
| (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
| September 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 | 574,014 | (20,856) | 553,158 | 220,549 | (24,634) | 195,915 |
| Marketable securities | 75,801 | - | 75,801 | 107,561 | - | 107,561 |
| Total cash and cash equivalents and marketable securities | 649,815 | (20,856) | 628,959 | 328,110 | (24,634) | 303,476 |
Reconciliation of consolidated to Burford-only due from settlement of capital provision assets
| September 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 | 64,489 | - | 64,489 | 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 September 30, 2024 | 86,940 | (30,450) | 56,490 | 56,257 | 233 |
| Net realized gains/(losses) for the three months ended September 30, 2023 | 37,566 | (7,440) | 30,126 | 29,145 | 981 |
| (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 nine months ended September 30, 2024 | 262,273 | (76,736) | 185,537 | 184,164 | 1,373 |
| Net realized gains/(losses) for the nine months ended September 30, 2023 | 171,331 | (46,811) | 124,520 | 123,539 | 981 |
Reconciliation of consolidated to Burford-only capital provision income
| Three months ended September 30, 2024 | Three months ended September 30, 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 |
| Net realized gains/(losses) | 86,940 | (30,450) | 56,490 | 37,566 | (7,440) | 30,126 |
| Fair value adjustment during the period, net of previously recognized unrealized gains/(losses) transferred to realized gains/(losses) (excluding-YPF) | 75,684 | (554) | 75,130 | 46,125 | (32,339) | 13,786 |
| Income on capital provision assets, excluding YPF | 162,624 | (31,004) | 131,620 | 83,691 | (39,779) | 43,912 |
| Fair value adjustment during the period, net of previously recognized unrealized gains/(losses) transferred to realized gains/(losses) (YPF-only) | 104,135 | (34,546) | 69,589 | 417,920 | (140,690) | 277,230 |
| Other | 4,229 | (477) | 3,752 | 2,902 | 951 | 3,853 |
| Total capital provision income | 270,988 | (66,027) | 204,961 | 504,513 | (179,518) | 324,995 |
| Nine months ended September 30, 2024 | Nine months ended September 30, 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 |
| Net realized gains/(losses) | 262,273 | (76,736) | 185,537 | 171,331 | (46,811) | 124,520 |
| Fair value adjustment during the period, net of previously recognized unrealized gains/(losses) transferred to realized gains/(losses) (excluding-YPF) | 63,406 | (3,322) | 60,084 | 142,799 | (57,472) | 85,327 |
| Income on capital provision assets, excluding YPF | 325,679 | (80,058) | 245,621 | 314,130 | (104,283) | 209,847 |
| Fair value adjustment during the period, net of previously recognized unrealized gains/(losses) transferred to realized gains/(losses) (YPF-only) | 141,782 | (47,372) | 94,410 | 695,238 | (235,731) | 459,507 |
| Other | 2,033 | 160 | 2,193 | 6,745 | 303 | 7,048 |
| Total capital provision income | 469,494 | (127,270) | 342,224 | 1,016,113 | (339,711) | 676,402 |
Reconciliation of consolidated undrawn commitments to Burford-only undrawn commitments
Elimination of third-party interests
| ($ in thousands) | Consolidated | Burford-only | |
|---|---|---|---|
| Definitive | 931,730 | (204,768) | 726,962 |
| Discretionary | 1,011,019 | (220,307) | 790,712 |
| Total legal finance undrawn commitments | 1,942,749 | (425,075) | 1,517,674 |
| Legal risk (definitive) | 44,451 | - | 44,451 |
| Total capital provision-direct undrawn commitments | 1,987,200 | (425,075) | 1,562,125 |
| Capital provision-indirect undrawn commitments | 3,479 | (2,899) | 580 |
| Total capital provision undrawn commitments | 1,990,679 | (427,974) | 1,562,705 |
| 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) | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Burford Capital Limited equity | 2,432,109 | 2,290,858 |
| Less: Goodwill | ( 134 ,015) | ( 133 ,965) |
| Tangible book value attributable to Burford Capital Limited | 2,298,094 | 2,156,893 |
| Basic ordinary shares outstanding | 219,421,376 | 218,962,441 |
| Tangible book value attributable to Burford Capital Limited per ordinary share | $10.47 | $9.85 |
consolidated financial results in accordance with US GAAP. US GAAP requires us to present financial statements that consolidate some of the limited partner interests in private funds we manage as well as assets held on our balance sheet where we have a partner or minority investor. We therefore refer to various presentations of our consolidated financial results as follows:
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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