Burford Capital Limited · LSE:BUR
Burford Capital — Corporate Update (March 2023)
32 slides from Burford Capital's corporate update, Mar 15, 2023
Slide 1: Update on 2022 Business Activity
MARCH 15, 2023 Burford Capital Update on 2022 Business Activity This presentation is for the use of Burford’s public shareholders and is not an offering of any Burford private fund.
Slide 2: Notice & disclaimer
Notice & disclaimer This presentation (this “Presentation”) provides certain information to facilitate review and understanding of the business, results of operations and financial position of Burford Capital Limited and its subsidiaries (the “Company” or “we”, “our” or “us”) for the year ended Dece
Slide 3: Notice & disclaimer
Notice & disclaimer Burford is in the process of preparing its audited financial statements for the year ended December 31, 2022, including the impact of potential changes to Burford’s fair value methodology on its portfolio. Final audited financial statements and other disclosures will be reported
Slide 4: Strong 2022 operating performance; expected turning point in 2023
Strong 2022 operating performance; expected turning point in 2023 Litigation continues to normalize after pandemic-driven disruption - Meaningful upswing in portfolio activity as courts resume fully normal operations post-pandemic - more than 30 trials and final merits hearings1 already scheduled fo
Slide 5: Four pillars of Burford's value proposition
Four pillars of Burford’s value proposition 1. Core portfolio 2. Origination platform • Burford-only capital provision-direct cumulative realizations • Clear market leader with significant scale and meaningfully larger since inception of more than $2 billion with an 88% ROIC and than any competitor2
Slide 6: Burford has generated strong cash-on-cash returns
Burford has generated strong cash-on-cash returns • Burford has generated consistently high returns on $2.2 billion of realizations since inception in 2009 • A recurring mix of settlements and wins drives strong returns in reasonable time frames, with asymmetrically low losses • Cumulative ROIC decr
Slide 7: ROIC distribution of concluded assets
Burford-only concluded (fully and partially) capital provision-direct assets arrayed by ROIC Favorable asymmetric From inception through December 31, 2022 ($ in millions) returns 0% or less 0 to 99% 100 to 199% Greater than 200% ROIC ROIC ROIC ROIC Total Realized Realized Realized Realized Realized
Slide 8: Significant realizations indicated by proprietary probabilistic model
NOT A PROJECTION – SEE DISCLAIMER ON PAGE 2 Significant realizations indicated by proprietary probabilistic model Significant realizations indicated by proprietary probabilistic model Burford-only capital provision-direct portfolio, ex. YPF-related assets ($ in millions, except percentages) June 30,
Slide 9: Origination platform a competitive advantage
NOT A PROJECTION – SEE DISCLAIMER ON PAGE 2 Origination platform a Burford-only new commitments and deployments Capital provision-direct competitive advantage ($ in millions) 726 3 649 • Proven commercial legal finance 63 platform with significant scale and 530 barriers to entry 491 447 457 • Record
Slide 10: Expected turning point for the portfolio in 2023
Expected turning point for the portfolio in 2023 Realizations Burford-only – capital provision-direct ($ in millions) • More than 30 trials and final merits hearings already scheduled for 2023 (2022: 11 and 2021: 10) • Early 2023 successes include: - Trial win resulting in $67 million of proceeds Gr
Slide 11: Significant potential from larger and more recent vintages
Significant potential from larger and more recent vintages • Increased deployments in recent years, along with relatively low levels of resolutions, indicate portfolio could be well-positioned for significant realized gains - Even excluding the YPF-related assets, we continue to see the potential fo
Slide 12: YPF trial court summary judgment decision expected in 2023
YPF trial court summary judgment decision expected in 2023 • We await a summary judgment decision, as related filings by claimants and defendants were completed on June 23, 2022 • Summary judgment decision is expected to be made available through the Public Access to Court Electronic Records (PACER)
Slide 13: Asset manager for nine private funds and three sidecar funds
Asset manager for nine private funds and three sidecar funds • Closed $360 million Burford Advantage Fund1 and $350 million Burford Alternative Income Fund II (BAIF II) in 2022 • Extended BOF-C investment period through December 31, 2023, and shifted asset allocation to 75/25 split between Burford’s
Slide 14: Liquidity remains robust
Liquidity remains robust • Burford-only cash and cash equivalents and marketable securities of $210 million at December 31, 2022 - Marketable securities consist of short-duration and generally investment-grade fixed income assets • Current liquidity position primarily reflects strong Burford-only de
Slide 15: Strong 2022 operating performance; expected turning point in 2023
Strong 2022 operating performance; expected turning point in 2023 ✓ Litigation continues to normalize after pandemic-driven disruption ✓ Increased modeled Burford-only implied realizations ✓ Strong 2022 with meaningful cash generation and portfolio activity Record-breaking levels of new business as
Slide 16: Supplementary data
Supplementary data [Burford
Slide 17: Capital provision-direct new commitments
Capital provision-direct new commitments • Record Burford-only capital provision-direct new commitments1, up 24%, due to continued prioritization of balance sheet capital for potentially highest returning assets Group-wide capital provision-direct new commitments ($ in millions) Up 24% year-over-yea
Slide 18: Capital provision-direct deployments
Capital provision-direct deployments • Largest ever Burford-only capital provision-direct deployments due to continued prioritization of balance sheet capital for potentially highest returning assets • Burford-only capital provision-direct deployments up 94% excluding the global antitrust portfolio
Slide 19: Capital provision-direct realizations
Capital provision-direct realizations Group-wide capital provision-direct realizations ($ in millions) Up 33% year-over-year 608 591 6 66 265 175 381 354 337 60 21 19 105 54 337 350 321 264 228 2018 2019 2020 2021 2022 Burford-only Funds BOF-C Burford Capital 19
Slide 20: Weighted average life (WAL) of concluded portfolio
Weighted average life (WAL) of concluded portfolio Burford-only WAL of fully and partially concluded capital provision-direct portfolio From inception through period end ($ in millions, WAL in years) 2.4 2.3 2.3 2.3 2.1 2.1 1.9 1.9 1.7 1.7 2,211 1,861 1,597 1,260 1,081 2018 2019 2020 2021 2022 Cumul
Slide 21: Low leverage and laddered maturities
Low leverage and laddered maturities Maturity of debt outstanding • Well-laddered and extended debt ($ in millions) maturities - Weighted average life of debt WAL of debt: 4.9 years considerably longer than that WAL of capital provision-direct assets: 2.4 years 1 of concluded capital 400 provision-d
Slide 22: Reconciliations
Reconciliations [Burford
Slide 23: Cash receipts reconciliation
Cash receipts reconciliation ($ in millions) For the year ended December 31, 2022 Consolidated proceeds from capital provision assets 388 Less: Elimination of third-party interests (82) Burford-only total proceeds from capital provision assets 306 (1) Consolidated asset management income 9 Plus: Eli
Slide 24: Capital provision-direct realizations
Capital provision-direct realizations Reconciliation of consolidated to Group-wide Elimination of third-party interests to ($ in millions) Consolidated Burford only Burford-only Other funds BOF-C Group-wide At December 31, 2022 402 (52) 350 175 66 591 At December 31, 2021 374 (110) 264 54 19 337 At
Slide 25: Capital provision-direct realized gains and YPF realizations
Capital provision-direct realized gains and YPF realizations Capital provision-direct realizations - reconciliation of consolidated to Burford-only Elimination of third-party For the year ended December 31, 2022 ($ in millions) Consolidated interests Burford-only Realized gains for global antitrust
Slide 26: Capital provision-direct deployments
Capital provision-direct deployments Reconciliation of consolidated to Group-wide Elimination of third-party interests to ($ in millions) Consolidated Burford only Burford-only Other funds BOF-C Group-wide At December 31, 2022 605 (148) 457 31 148 636 At December 31, 2021 673 (226) 447 144 138 729 A
Slide 27: Liquidity
Liquidity Reconciliation of consolidated to Burford-only ($ in millions) Elimination of At December 31, 2022 Consolidated third-party interests Burford-only Cash and cash equivalents 108 (34) 74 Marketable securities 136 - 136 Total cash and cash equivalents and marketable securities 244 (34) 210 El
Slide 28: Cumulative realizations from concluded or partially concluded assets since inception
Cumulative realizations from concluded or partially concluded assets from capital provision-direct assets since inception Reconciliation of consolidated to Burford-only Elimination of third- ($ in millions) Consolidated party interests Burford-only At December 31, 2022 2,246 (35) 2,211 At December 3
Slide 29: Cumulative capital provision-direct deployments, realizations on concluded assets
Cumulative capital provision-direct deployments, realizations on fully and partially concluded assets from inception Reconciliation of consolidated to Burford-only Elimination of third-party ($ in millions) Consolidated interests Burford-only Total cumulative deployments since inception 1,394 (214)
Slide 30: Capital provision-direct realizations
Capital provision-direct realizations Reconciliation of consolidated to Burford-only Elimination of third- ($ in millions) Consolidated party interests Burford-only Six months ended December 31, 2022 326 (46) 280 Six months ended June 30, 2022 76 (6) 70 Six months ended December 31, 2021 374 (251) 1
Slide 31: Due from settlement
Due from settlement Reconciliation of consolidated to Burford-only Elimination of third- ($ in millions) Consolidated party interests Burford-only At December 31, 2022 117 (2) 115 At December 31, 2021 86 (23) 63 At December 31, 2020 31 - 31 At December 31, 2019 48 (29) 19 Burford Capital 31
Slide 32: [Burford
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