Burford Capital Limited · LSE:BUR
Burford Capital — Q4 2024 Earnings Presentation
52 slides from Burford Capital's earnings presentation, Mar 3, 2025
Slide 1: Fourth Quarter and Full Year 2024 Financial Results
March 3, 2025 Burford Capital Fourth Quarter and Full Year 2024 Financial Results This presentation is for the use of Burford’s public shareholders and is not an offering of any Burford private fund.
Slide 2: Notice and disclaimer
Notice and disclaimer This presentation (this “Presentation”) provides certain information to facilitate review and understanding of the business, financial condition and results of operations of Burford Capital Limited and its subsidiaries (the “Company”, “Burford”, “we”, “our” or “us”) as of and f
Slide 3: Notice and disclaimer (continued)
Notice and disclaimer (continued) Basis of presentation; non-GAAP financial measures; key performance indicators; definitions. The Company reports its financial results in accordance with the generally accepted accounting principles in the United States (“US GAAP”). US GAAP requires the Company to p
Slide 4: Burford Reports 4Q24 and FY24 Financial Results
Burford Reports 4Q24 and FY24 Financial Results “Burford had a splendid 2024. We achieved record- breaking cash realizations with returns well above our Dividend historical averages as well as strong growth in new On February 28, 2025, Burford’s board of directors declared a final dividend for the y
Slide 5: Contents
Contents Important updates to financial reporting structure and terminology Burford has always focused on providing disclosure that represents what shareholders actually own, which is reflected in the “Burford-only” basis of financial reporting. “Burford-only” reporting removes the impact Page of pr
Slide 6: 4Q24 and FY24 Financial Results ― GAAP Consolidated
Consolidated (GAAP) 4Q24 and FY24 $ in thousands Revenues FY24 FY23 4Q24 4Q23 Financial Results ― Capital provision income/(loss) 552,066 1,341,923 82,572 325,810 GAAP Consolidated Net realized gains/(losses) Unrealized gains/(losses) ex YPF-related assets 439,665 819 251,618 261,633 177,392 (62,587
Slide 7: Key Messages on FY24 Results
Key Messages on FY24 Results 1 Record realizations and net realized gains reflect portfolio Group-wide total portfolio momentum As of period end ($ in millions) • Record realizations of $641 million up more than 20% and diversified across more than 7,390 70 assets 7,170 • Overall cash generation lev
Slide 8: Financial Metrics Summary
Financial Metrics Summary $ in millions except per share data and as otherwise noted FY24 FY23 Dec 31, 2024 Dec 31, 2023 Shareholders’ equity 2,419 2,291 Capital provision income 388 896 Book value per ordinary share 11.03 10.46 Net realized gains 327 187 Financial Tangible book value per Results As
Slide 9: Total Segments
Total Segments [Burford
Slide 10: Segment Reporting Overview
Segment Reporting Overview Consolidated (GAAP) Consolidated private funds and Adjustments to remove the financial impact of certain consolidated private funds and other third-party interests1 third-party interests Total Segments (Burford-only) Reflects financial results and business economics attrib
Slide 11: 4Q24 and FY24 Financial Results ― Total Segments
4Q24 and FY24 Total Segments (Burford-only) Financial Results ― $ in thousands FY24 FY23 4Q24 4Q23 Total Segments Revenues Capital provision income/(loss) 388,124 896,371 45,900 219,969 (Burford-only) Net realized gains/(losses) 327,174 187,376 141,637 62,856 Unrealized gains/(losses) 76,001 700,838
Slide 12: Principal Finance
Segments: Principal Finance
Slide 13: 4Q24 and FY24 Segment Results: Principal Finance
Principal Finance Segment 4Q24 and FY24 Segment Results Principal Finance Segment $ in thousands FY24 FY23 4Q24 4Q23 Revenues Capital provision income/(loss) 388,124 896,371 45,900 219,969 Net realized gains/(losses) 327,174 187,376 141,637 62,856 Unrealized gains/(losses) 76,001 700,838 (78,493) 15
Slide 14: Portfolio Snapshot
Principal Finance Segment Portfolio Snapshot Portfolio by fair value and undrawn commitments Portfolio exposure by geography Capital provision assets Deployed cost of capital provision assets (ex YPF-related assets) ($ in millions) 2020-24 ($ in millions) CAGR 2% 1% 5,204 15% 4,840 22% 3,943 1,633 3
Slide 15: Capital Provision Income and Fair Value Bridge
Principal Finance Segment Capital Provision Income and Fair Value Bridge ($ in millions) FY24 FY23 4Q24 4Q23 Net realized gains/(losses) 327,174 187,376 141,637 62,856 Unrealized gains/(losses), ex YPF-related assets (8,579) 157,929 (68,663) 72,602 Total realized and unrealized gains/(losses), ex YP
Slide 16: New Business
Principal Finance Segment Deployments New Business ($ in millions) Quarterly Annual (chart scale adjusted) 477 • Deployments and growth in definitive denotes deployments related 448 412 commitments remained strong in FY24, 197 195 to interests in private funds 447 457 401 but while these are importa
Slide 17: Portfolio Realizations and Realized Gains
Principal Finance Segment Portfolio Realizations Realizations ($ in millions) and Realized Gains Quarterly Annual (chart scale adjusted) 641 denotes realizations related to 253 • Realizations of $641 million in FY24 interests in private funds 237 625 were an annual record and up 21% 244 531 509 comp
Slide 18: Historical Track Record ― Fully and Partially Concluded Assets
Principal Finance Segment Historical Track Record ― Fully and Partially Concluded Assets • Burford has generated consistently high returns on $3.3 billion of realizations since inception in 2009 through December 31, 2024 • Strong returns on realizations in FY24 drove an increase in the cumulative RO
Slide 19: Asset ROIC Distribution ― Asymmetric Returns
Principal Finance Segment Concluded (fully and partially) assets arrayed by ROIC Asset ROIC From inception through December 31, 2024 ($ in millions) Distribution ― 0% or less ROIC 0 to 99% ROIC 100 to 199% ROIC Greater than 200% ROIC Total Asymmetric Returns Deployed: $250 Realized losses: ($169) De
Slide 20: Deployed Capital by Vintage
Principal Finance Segment Deployed Capital by Vintage As of December 31, 2024 ($ in millions) Total Deployments Concluded $1,786 Active $1,663 WAL of active 3.1 years deployed cost 123 200 181 Realizations 158 146 Deployments 330 430 389 Active 373 94 352 339 117 336 Concluded 112 12 258 199 210 15
Slide 21: Status of YPF-related Assets
Principal Finance Segment Status of YPF-related Assets • We believe YPF-related assets have the potential to deliver significant upside • Final judgment a complete win against Argentina of $16 billion, at the high end of the possible range of damages • Argentina has appealed to the Second Circuit Co
Slide 22: Asset Management and Other Services
Segments: Asset Management and Other Services
Slide 23: 4Q24 and FY24 Segment Results: Asset Management and Other Services
Asset Management and Other Services Segment 4Q24 and FY24 Segment Results Asset Management and Other Services Segment $ in thousands FY24 FY23 4Q24 4Q23 Revenues Asset management income 44,627 63,712 15,357 22,530 Other income/(loss) 3,051 4,392 543 2,358 Total revenues 47,678 68,104 15,900 24,888 O
Slide 24: Asset Management Income and Portfolio
Asset Management and Other Services Segment Asset Management Asset management income ($ in millions) Cash receipts from asset management ($ in millions) Income and Portfolio 64 56 • Asset management income of $45 45 million in FY24 was down from $64 million in FY23, with lower profit- 29 29 47 56 sh
Slide 25: Private Funds Summary Table
Asset Management and Other Services Segment Private Funds Summary Table As of December 31, 2024 ($ in millions) Investor Asset Asset Assets Under Fee Structure 2 Performance Fee Investment Period Fund Commitments Commitments Deployments Management 1 (management/perfor Waterfall End Closed to Date to
Slide 26: Liquidity and Capital Management
Liquidity and Capital Management
Slide 27: Liquidity Bridge and Cash Receipts
FY24 cash bridge Burford-only Liquidity Bridge and ($ in millions) A. Cash and marketable securities as of December 31, 2023 Cash Receipts 699 75 B. Cash receipts C. Proceeds from debt issuance, net of debt purchases, interest and debt issuance costs 123 • Cash and marketable securities were 32 922
Slide 28: Operating Expenses
Operating expense detail Operating Expenses Total Segments (Burford-only) ($ in millions) $ in thousands FY24 FY23 4Q24 4Q23 • In FY24, operating expenses fell 43% Compensation and benefits year on year, primarily due to a 66% decrease in long-term incentive Salaries and benefits 42,418 39,788 9,657
Slide 29: Debt Structure and Ratios
Maturity of debt outstanding Debt Structure and ($ in millions) Ratios 675 Weighted Average Life (WAL) Debt Concluded Active • Debt payable of $1,764 million as of Outstanding Assets1 Deployments December 31, 2024, up from $1,535 400 360 4.5 yrs 2.6 yrs 3.1 yrs million one year ago driven by January
Slide 30: Four Pillars of Burford’s Value Proposition
Four Pillars of Burford’s Value Proposition 1. Core portfolio 2. Origination platform • Principal Finance cumulative realizations since inception • Market leader1 with 160 full-time employees as of December 31, 2024, through December 31, 2024 of $3.3 billion with an 87% ROIC including 47 lawyers on
Slide 31: Consolidated Financial Statement Reconciliations
Consolidated Financial Statement Reconciliations
Slide 32: Statement of Operations for the three months ended December 31, 2024 and 2023
Statement of Operations for the three months ended December 31, 2024 and 2023 Three months ended December 31, 2024 Three months ended December 31, 2023 Third-party Total segments Third-party Total segments ($ in thousands) Consolidated interests (Burford-only) Consolidated interests (Burford-only) R
Slide 33: Statement of Operations for the years ended December 31, 2024 and 2023
Statement of Operations for the years ended December 31, 2024 and 2023 Twelve months ended December 31, 2024 Twelve months ended December 31, 2023 Third-party Total segments Third-party Total segments ($ in thousands) Consolidated interests (Burford-only) Consolidated interests (Burford-only) Revenu
Slide 34: Statement of Financial Position as of December 31, 2024 and 2023
Statement of Financial Position as of December 31, 2024 and 2023 December 31, 2024 December 31, 2023 Third-party Total segments Third-party Total segments ($ in thousands) Consolidated interests (Burford-only) Consolidated interests (Burford-only) Assets Cash and cash equivalents 469,930 (28,269) 44
Slide 35: Management’s Update on SOX Controls and Procedures
Management’s Update on SOX Controls and Procedures Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15(b) under the Exchange Act as of December 31, 2024. B
Slide 36: Other Reconciliations
Other Reconciliations [Burford
Slide 37: Cash Receipts (Quarterly)
Cash Receipts (Quarterly) For the three months ended ($ in thousands) Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 Consolidated proceeds from capital provision assets 222,444 395,943 125,344 247,561 119,208 132,147 163,522 144,485 105,464 Plus/(Less): Third-party interests
Slide 38: Cash Receipts (Annual)
Cash Receipts (Annual) Year ended December 31, ($ in thousands) 2024 2023 2022 2021 2020 Consolidated proceeds from capital provision assets 991,292 559,362 387,786 396,415 557,913 Plus/(Less): Elimination of third-party interests (340,232) (117,296) (81,857) (139,826) (60,487) Total segments (Burfo
Slide 39: Principal Finance Deployments
Principal Finance Deployments For the three months ended Third-party Total segments Adjusted ($ in thousands) Consolidated interests (Burford-only ) Adjustments Burford-only December 31, 2024 154,194 (25,376) 128,818 (2,557) 126,261 September 30, 2024 98,150 (24,447) 73,703 137 73,840 June 30, 2024
Slide 40: Principal Finance Realizations
Principal Finance Realizations For the three months ended Third-party Total segments Adjusted ($ in thousands) Consolidated interests (Burford-only) Adjustments Burford-only December 31, 2024 348,023 (92,377) 255,646 (2,221) 253,425 September 30, 2024 254,165 (91,185) 162,980 5,436 168,416 June 30,
Slide 41: Tangible Book Value per Ordinary Share and Rolling ROTCE
Tangible Book Value Attributable to Burford Capital Limited per Ordinary Share ($ in thousands, except share data) December 31, 2024 December 31, 2023 Burford Capital Limited equity 2,419,432 2,290,858 Less: Goodwill (133,948) (133,965) Tangible book value attributable to Burford Capital Limited 2,2
Slide 42: Covenant calculations as of December 31, 2024 and 2023
Covenant calculations as of December 31, 2024 and 2023 Consolidated net debt to consolidated tangible assets ratio calculation ($ in thousands) December 31, 2024 December 31, 2023 (1) Total principal amount of debt outstanding 1,783,690 1,563,073 Less: Cash and cash equivalents (469,930) (220,549) L
Slide 43: YPF-related Income
YPF-related Income Capital provision income, excluding YPF-related assets reconciliation For the three months ended December 31, 2024 For the three months ended December 31, 2023 Total Total Third-party segments Third-party segments ($ in thousands) Consolidated interests (Burford-only) Consolidated
Slide 44: YPF-related Fair Value and Realizations
YPF-related Fair Value and Realizations YPF fair value - reconciliation of consolidated to Burford-only December 31, 2024 December 31, 2023 Total Total Third-party segments Third-party segments ($ in thousands) Consolidated interests (Burford-only) Consolidated interests (Burford-only) Capital provi
Slide 45: Asset Management Income
Asset Management Income Asset management income Year ended December 31, 2024 Year ended December 31, 2023 Year ended December 31, 2022 Total Total Total Third-party segments Third-party segments Third-party segments ($ in thousands) Consolidated interests (Burford-only) Consolidated interests (Burfo
Slide 46: Undrawn Commitments
Undrawn Commitments December 31, 2024 December 31, 2021 Total Total Third-party segments Third-party segments ($ in thousands) Consolidated interests (Burford-only) ($ in thousands) Consolidated interests (Burford-only) Definitive 962,808 (189,135) 773,673 Definitive 703,417 (180,591) 522,826 Discre
Slide 47: Capital Provision Income
Capital Provision Income Three months ended December 31, 2024 Three months ended December 31, 2023 Total Total Third-party segments Third-party segments ($ in thousands) Consolidated interests (Burford-only) Consolidated interests (Burford-only) Net realized gains/(losses) 177,392 (35,755) 141,637 8
Slide 48: Net realized gains/(losses)
Net realized gains/(losses) Net realized gains/(losses) Principal Excluding ($ in thousands) Finance Less: private funds private funds For the year ended December 31, 2024 327,174 (2,567) 324,607 For the year ended December 31, 2023 187,376 (933) 186,443 For the year ended December 31, 2022 134,473
Slide 49: Glossary
Glossary Advantage Fund Burford Advantage Master Fund LP, a private fund focused on pre-settlement litigation strategies where litigation risk remains, but where the overall risk return profile is generally lower than assets funded directly by our balance sheet. Investors in the Advantage Fund inclu
Slide 50: Glossary (continued)
Glossary (continued) Deployed cost Deployed cost is the amount of financing we have provided for an asset at the applicable point in time. For purposes of calculating returns, we must consider how to allocate the costs associated with an asset in the event of a partial conclusion. Our approach to co
Slide 51: Glossary (continued)
Glossary (continued) Total segments Refers to the sum of our two reportable segments, (i) Principal Finance and (ii) Asset Management and Other Services, and is presented on a Burford-only basis. Unrealized gain or loss Represents the fair value of our legal finance assets over or under their deploy
Slide 52: [Burford
[Burford