Burford Capital Limited · LSE:BUR
Burford Capital — Investor Day (April 2025)
132 slides from Burford Capital's investor day presentation, Apr 3, 2025
Slide 1: Investor Day: Driving shareholder value through the business of law
Burford Capital Investor Day Driving shareholder value through the business of law April 3, 2025 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”) has been prepared by Burford Capital Limited (together economic factors, including uncertainty surrounding the effects, severity and duration of public with its subsidiaries, the “Company”, “Burford”, “we”, “our” or “us”) solely for informa
Slide 3: Notice & disclaimer (continued)
Notice & disclaimer (continued) susceptible to multiple interpretations and periodic revisions based on actual experience and Burford-only financial measures provides valuable and useful information to investors to aid in business developments. As such, the Estimates constitute forward-looking infor
Slide 4: Notice & disclaimer (continued)
Notice & disclaimer (continued) There can be no assurances that any of the trends described in this Presentation will continue or person, nor does this Presentation constitute an invitation or inducement to engage in investment will not reverse. Past events, trends and results do not imply, predict
Slide 5: Welcome & agenda
Welcome & agenda Burford
Slide 6: Agenda
Agenda • Welcome Josh Wood • Evolution & Growth Christopher Bogart • Portfolio Trends Jonathan Molot • Legal Finance Market Opportunity Philipp Leibfried, Quentin Pak, Emily Slater, Katharine Wolanyk • Break • Life Cycle of a Legal Finance Asset Craig Arnott, Andrew Farthing, Evan Meyerson • New Opp
Slide 7: Evolution & Growth
Evolution & Growth Christopher Bogart
Slide 8: Burford is the premier finance provider to the business of law
Burford is the premier finance provider to the business of law 1 1 2 3 Burford has built the We see substantial YPF is a further world’s largest legal growth ahead and potential source of finance business the continuation of robust cash flow and which has produced strong asymmetric returns high retu
Slide 9: Case Study: Funding legal fees and expenses
Case Study: Funding legal fees and expenses Overview Burford value add Results • Big 4 liquidator with claims • Burford able to work with Original commitment arising from a large liquidator to keep case moving December 2019 international insolvency despite closing the original Conclusion commitment
Slide 10: Case Study: Large corporate monetization
Case Study: Large corporate monetization Overview Burford value add Results • Growth-stage private company • Burford’s funding materially Original commitment v. Fortune 100 public company accelerated claimant’s receipt June 2024 of expected recoveries, Conclusion de-risking the dispute Settled early
Slide 11: How Burford delivers legal finance capital to clients
How Burford delivers legal finance capital to clients Two types of clients… Two primary funding concepts… Two basic structures… Litigants Pay legal expenses Single case (primarily corporates) associated with financing • Litigation not core to business • Seeking P&L relief from high litigation legal
Slide 12: We are a global company managing the largest portfolio of its kind
We are a global company managing the largest portfolio of its kind 1 Principal Finance $7.4 billion 15-year track record (since inception) 2 Dual-listed on Group-wide legal NYSE & LSE finance portfolio ROIC IRR 87% 26% $3 billion Added to Market capitalization $3.3 billion Russell 2000® index in 202
Slide 13: We have evolved into a global service provider to law backed by perpetual capital
We have evolved into a global service provider to law backed by perpetual capital Introduction of legal finance structures $8,000 2021 Portfolio with $7,000 2017 equity risk 2009 Single case Group-wide portfolio $6,000 Single with equity 2020 risk 2018 Law firm case $5,000 equity funding Adverse 201
Slide 14: 15 years of compounding growth in the portfolio
15 years of compounding growth in the portfolio I N I T I A L I P O A N D G R O U P - W I D E TO TA L P O RT F O L I O ($ in millions) 7,390 2,185 Over 15 years… More than 50x 4,601 Burford has grown 1,582 $130 million of initial capital 5,204 $130 million into a market-leading 3,019 raised at incep
Slide 15: Power of scale is reflected across a range of metrics
Power of scale is reflected across a range of metrics Portfolio breadth Average “check size” Number of active legal finance assets - Principal Finance portfolio Average group-wide commitment per asset in vintages ($ in millions) 236 22 163 16 6 7 52 17 2010 2015 2020 2024 2009-2010 2011-2015 2016-20
Slide 16: Principal Finance portfolio continues to deliver attractive cumulative returns
Principal Finance portfolio continues to deliver attractive cumulative returns Cumulative performance of Principal Finance portfolio1 As of year-end for each period Cumulative portfolio realizations are Realizations (cumulative) nearly 10x 2015 level and more than 2x 2020 level, demonstrating accele
Slide 17: Book value per share has scaled alongside the portfolio
Book value per share has scaled alongside the portfolio Tangible book value per share (as of year-end 2010-2024) $10.42 14% CAGR $1.64 2010 2015 2020 2024 2025 Investor Day 17
Slide 18: Law: One of the largest industries in the world
Law: One of the largest industries in the world G L O B A L L E G A L I N D U S T RY LEGAL ASSETS LEGAL SERVICES Value of all legal assets Law firms (judgments, awards and settlements) Third-party service providers Massive and difficult to estimate A multi-trillion- More than $1 trillion globally 2
Slide 19: We see a significant growth runway in legal finance
We see a significant growth runway in legal finance Illustrative earnings capacity growth to 2030 Deployed cost and definitive commitments (excluding YPF-related assets) $5.5 bn We believe there is $4.8 bn an addressable $4.2 bn market opportunity 16% CAGR that can allow us to $2.4 bn continue to gr
Slide 20: Unique competitive advantages position Burford to drive growth through innovation
Unique competitive advantages position Burford to drive growth through innovation Scale Perpetual capital Market leading origination platform Public & private market access and largest legal finance portfolio1 Structural Brand Advantage Proprietary data Most recognized institutional 15+ years of cas
Slide 21: Execution: How we continue to grow in legal finance
Execution: How we continue to grow in legal finance Do more with existing clients 73% of law firms are repeat clients1 Add new clients in existing geographies Our brand recognition and global presence are a key competitive advantage Add new geographies Emerging legal finance markets in European, Asi
Slide 22: Measuring growth has become more complex as we fund assets with wider ranging risk/return profiles
Measuring growth has become more complex as we fund assets with wider ranging risk/return profiles • Commitments and deployments no longer suitable metrics as they provide no insight into pricing/potential profitability • We use modeled realizations as our principal internal metric Pricing to Risk N
Slide 23: Large matters are an important part of the business but occur irregularly
Large matters are an important part of the business but occur irregularly • First $100+ million commitment in 2015 Large assets (13) with $100+ million commitments • Since 2015, 13 $100+ million commitments Balance sheet Group-wide (including portfolios) have accounted for 37% of group-wide deployme
Slide 24: Focus on scale, cash generation and strong return on equity
Focus on scale, cash generation and strong return on equity P U T S I M P LY, O U R A S P I R AT I O N S F O R T H E C U R R E N T L E G A L F I N A N C E P L AT F O R M A R E TO : 1 2 3 Continue to grow Produce earnings capacity: $4.5 billion Generate a long-term Double portfolio base in realizatio
Slide 25: Team is highly aligned with shareholders
Team is highly aligned with shareholders Burford shares have delivered solid returns for Total shareholder and benchmark returns1 shareholders over a mid- and long-term Annualized Nominal total returns total returns horizon Since Since 5-year 10-year 5-year 10-year inception inception Burford remain
Slide 26: YPF-related assets: A very large example of our core business
YPF-related assets: A very large example of our core business H I S TO RY O F Y P F - R E L AT E D A S S E T S 2012: Argentina breaches contract with shareholders by failing to tender for NYSE shares of YPF after re-nationalizing 2015: Burford wins competitive process to provide funding to insolvent
Slide 27: YPF-related assets: By the numbers
YPF-related assets: By the numbers 1 • Deployed capital through December 31, 2024: $77 million • Future deployments for fees and expenses dependent on length and complexity of proceedings but likely in $10-25 million range • Cash realizations to date from secondary sales: $236 million • Current fair
Slide 28: Opportunities in the ecosystem of law
Opportunities in the ecosystem of law Estimated annualized Estimated annualized global legal fees legal & regulatory services revenue $800+B $200+B 1 2 1 2 3 Law Firm Equity Alternative Delivery Legal Tech / of Legal Services Artificial Intelligence 2025 Investor Day 28
Slide 29: Positioned for profitable growth
Positioned for profitable growth Optimally positioned for long runway of traditional legal finance growth Innovation in legal services ― worldwide phenomenon at varying stages of evolution Bow-wave of legal industry structural change expected as law incorporates We have built a business designed to
Slide 30: Portfolio Trends
Portfolio Trends Jonathan Molot
Slide 31: Three key portfolio themes
Three key portfolio themes 1. Portfolio Returns 2. Model Accuracy 3. Portfolio Potential Strong asset performance We have built a robust We see significant is the core driver of our predictive modeling capacity in the current business and the portfolio capability that we portfolio to drive future co
Slide 32: Lifetime realizations surpassed $3 billion in 2024 with continued strong performance
Lifetime realizations surpassed $3 billion in 2024 with continued strong performance P R I N C I PA L F I N A N C E T R A C K R E C O R D 1 Fully and partially concluded assets from inception through December 31, 2024 ($ in millions) TO TA L 80% of concluded case Adjudication-gains $972 49% IRR $3,3
Slide 33: Lots of singles and doubles…enhanced by the home runs
Lots of singles and doubles…enhanced by the home runs Burford has demonstrated a 15-year track record of asymmetric returns We build a durable portfolio of legal finance assets that we believe can produce attractive returns at a low loss rate Singles and doubles – often settlements – with few strike
Slide 34: Asymmetric return upside with low loss rate
Asymmetric return upside with low loss rate I N D I V I D U A L C A P I TA L P R O V I S I O N A S S E T S A R R AY E D B Y R O I C >700 600 500 400 Gains 300 % ROIC 200 Cumulative weighted average ROIC 87% 100 0 9.5% lifetime loss rate1 on deployed capital -100 Losses Net loss < $1m 2 0% or less RO
Slide 35: The risk/return mix of assets in the portfolio continues to widen and evolve
The risk/return mix of assets in the portfolio continues to widen and evolve • No longer viable to look at returns P R I C I N G TO R I S K on a single-number aggregate basis Modeled risk 1 of total loss Actual ROIC • We price to risk across a widely diversified portfolio but always 25% + 154% seek
Slide 36: Mix evolution clearly evident when considering impact of large monetizations
Mix evolution clearly evident when considering impact of large monetizations 1 R O I C & N E T R E A L I Z E D G A I N S O N A N N U A L R E A L I Z AT I O N S Two large short-duration assets 114% impacting 2022 and 2023 108% 95% 2021 VINTAGE 2023 VINTAGE Asset 1 Asset 2 Partially Fully (concluded p
Slide 37: Vintage-level ROIC and IRR evolve as underlying assets age and conclude
Vintage-level ROIC and IRR evolve as underlying assets age and conclude R O I C & I R R S C AT T E R P L O T B Y V I N TA G E 1 ROIC often rises over the life cycle of a vintage as 120% Pre-2016 settlements give way over time to more adjudicated 100% 2022 outcomes 2016-2020 80% By contrast, vintage
Slide 38: We saw momentum in clearing pandemic backlog in 2024… …but more to come
We saw momentum in clearing pandemic backlog in 2024… …but more to come 1 $837 million of active deployments4 in 2015-20 vintages Weighted Avg Life (WAL) Concluded (fully & partially)2 2.6 yrs Active deployed cost3 3.1 yrs Realizations Deployments Active Concluded Vintage 2009 2010 2011 2012 2013 20
Slide 39: Burford's proprietary probabilistic model continues to evolve
Burford’s proprietary probabilistic model continues to evolve and is a critical part Expansive Enhanced by of our decision-making proprietary data sets public data resources Quantitative • Quantitative probabilistic model is integral probabilistic to underwriting and used to manage capital models an
Slide 40: We continue to target substantial realizations and strong ROICs from the current portfolio
We continue to target substantial realizations and strong ROICs from the current portfolio PROBABILISTIC MODEL OUTPUT ( E X C L U D I N G Y P F - R E L AT E D A S S E T S ) Modeled realizations (unadjusted) $5.7 billion Experience adjustment 79% Modeled realizations $4.5 billion Estimated deployed c
Slide 41: Our models continue to be robust on adjudicated outcomes
Our models continue to be robust on adjudicated outcomes …but pre-trial settlements have introduced more variance 1 M O D E L I N G A C C U R A C Y F O R 1 2 3 F U L LY C O N C L U D E D M AT T E R S Adjudicated outcomes Adjudicated Pre-adjudication Overall (excluding losses) outcomes settlements in
Slide 42: A significantly higher portion of realizations have come from pre-adjudication settlements
A significantly higher portion of realizations have come from pre-adjudication settlements since June 2021 1 P R E - A D J U D I C AT I O N S E T T L E M E N T S A S % O F R E A L I Z AT I O N S Is this pandemic driven? Inception to Since June 2021 June 2021 41% 79% Or is this a lasting trend? Incre
Slide 43: We continue to target substantial realizations and strong ROICs from the current portfolio
We continue to target substantial realizations and strong ROICs from the current portfolio PROBABILISTIC MODEL OUTPUT ( E X C L U D I N G Y P F - R E L AT E D A S S E T S ) • Our latest modeling for the current Principal Finance portfolio shows $4.5 Modeled realizations (unadjusted) $5.7 billion bil
Slide 44: We remain well-positioned to monetize YPF-related assets
We remain well-positioned to monetize YPF-related assets • We believe YPF-related assets will ultimately deliver a ten-figure recovery for Burford, but litigation risk remains • Final judgment a complete win against Argentina of $16 billion, at the high end of the possible range of damages • Argenti
Slide 45: YPF process will be noisy, but we see some positive trends
YPF process will be noisy, but we see some positive trends Javier Milei: Debt must be paid. […] Interviewer: Does that include the 16 billion dollars from YPF? “Here we have a problem because we don’t have the Javier Milei: Stop, stop , stop. Yes, That also has to be paid. It’s money, we don’t have
Slide 46: Our portfolio is poised to continue its strong performance
Our portfolio is poised to continue its strong performance PAST PRESENT FUTURE Cumulative Realizations Modeled Realizations (Principal Finance track record since inception) Expansive Enhanced by (current portfolio ex YPF-related assets) proprietary public data $3.3 billion data sets Quantitative res
Slide 47: Burford Market Opportunity
Burford Market Opportunity Philipp Leibfried Quentin Pak Emily Slater Katharine Wolanyk
Slide 48: How do we navigate an enormous global litigation landscape?
How do we navigate an enormous global litigation landscape to get high-quality, actionable opportunities into our underwriting funnel?
Slide 49: Burford's business development capabilities are a driving force behind its market leading position
Burford’s business development capabilities are a driving force behind its market leading position 1 We have evolved from a simple …into a dynamic global presence operation in early days… that sets industry standards • Small team focused on US market Global team with on-the-ground and international
Slide 50: A closer look at Burford's opportunity in four key areas
A closer look at Burford’s opportunity in four key areas 1 2 3 4 US Intellectual Mainland Asia Commercial Property Europe Emerging region for Largest and most A significant driver of High growth legal finance with both diverse legal finance inbound financing potential with two local and global marke
Slide 51: US Commercial
1 | US Commercial
Slide 52: US litigation market is world's largest, most diverse and transparent
US litigation market is world’s largest, most diverse and transparent H I G H VA L U E V O L U M E & D I V E R S I T Y ( 2 0 2 3 S TAT S ) US major arbitration Federal courts State courts $23bn Value of 100 institutions largest 2023 verdicts1 Nearly 300k Over 12mn Over 500k civil cases filed2 civil
Slide 53: Burford is well-positioned to find actionable opportunities in a diverse, complex market
B E S P O K E S I N G L E C A S E L I T I G AT I O N Burford is well-positioned to find actionable Financing of fees and Portfolios opportunities in a diverse, complex market expenses Sophisticated market surveillance tools With opportunistic A key driver of scale in the now AI-enhanced monetization
Slide 54: Multi-party litigation: Objective is scale
M U LT I - PA RT Y L I T I G AT I O N Objective is scale Opportunity Building the book Claim monetization identification Build a book of exposures Cases with strong merits Independently Accompanied by to high conviction disputes financing fees and Potential for large damage or with a wide scope of e
Slide 55: Intellectual Property
2 | Intellectual Property
Slide 56: IP market risk drives higher quality opportunities
IP market risk drives higher quality opportunities Patent cases more about trial damages than filing volume US law Market trends against adjusts to Impact on 3-4k patent owners heightened IP litigation US cases filed each risk year1 80 cases went to trial in High invalidation rate More patents asser
Slide 57: Trend toward more complex, diversified financing strategies
Trend toward more complex, diversified financing strategies Patent finance now 1 2 3 Legacy financing of Corporate patent includes global “David and Goliath” owners increasingly campaigns, patent cases, focused on US seeking options for divestitures, larger IP monetization overall deal size 2025 Inv
Slide 58: Our business development and underwriting processes have evolved in response
Our business development and underwriting processes have evolved in response FROM TO “Litigation ready” “Consultative sell” • Primarily reacting to market’s • Earlier engagement allows us to perception of what is financeable customize financing strategies • Opportunities filtered by law firms, • Abi
Slide 59: Mainland Europe
3 | Mainland Europe
Slide 60: Active and diverse legal finance market with high growth potential
Active and diverse legal finance market with high growth potential Historical growth driven by antitrust claims HUB IN LONDON 40+ Landscape varied with distinctive national legal employees finance regimes Expanding legal finance market across major jurisdictions, notably Germany, Spain and the GERMA
Slide 61: Germany: A key legal finance market and EU member state
Germany: A key legal finance market and EU member state M A R K E T S T R AT E G Y 1) EU competition law remains a core driver $4.5 EU member state driving much of Recent decisions pave way for use of collective redress and legal finance trillion EU agenda 1 economy 2) Sustained drive for group acti
Slide 62: Spain: An emerging opportunity
Spain: An emerging opportunity M A R K E T S T R AT E G Y 1) Embrace an active pipeline $1.6 Legal fees low and Spanish lawyers able Seeing increased activity across all product lines trillion to work on risk 1 2) Capitalize on new legal dynamics economy New legislation is changing the group litigat
Slide 63: Asia
4 Asia
Slide 64: Asia has some of the world's largest economies and most established dispute resolution hubs
Asia has some of the world’s largest economies and most established dispute resolution hubs… SIZE OF ECONOMIES P O L I C Y TA I LW I N D DISPUTE RESOLUTION HUBS 3 of top 10 global economies1 Arbitration financing framework 2 of 5 implemented by legislation 9 of top 10 container ports2 Judicial recog
Slide 65: Asian companies use legal finance to alleviate balance sheet pressures
Asian companies use legal finance to alleviate balance sheet pressures from legal costs relating to global disputes SOUTH KOREA HONG KONG • International arbitration • International arbitration • US patent litigation • Insolvency proceedings INDIA • “Outcome-based” fees for arbitration • Internation
Slide 66: Burford's Asia strategy
Burford’s Asia strategy: Applying global expertise and resources to high quality Asia-based originations 1 2 3 Targeted origination One team approach: Cherry-picking the Regional coverage & best opportunities global expertise Leverage in-house legal and Ensure consistency in global Focusing on juris
Slide 67: Our business development capabilities are the front line in pursuing an expansive global market opportunity
Our business development capabilities are the front line in pursuing an expansive global market opportunity Highly specialized teams with strong relationships in major litigation areas Global scale with a local presence in key markets Proactive market education on legal finance benefits Built to inn
Slide 68: Break
Break Burford
Slide 69: Life Cycle of a Legal Finance Asset
Life Cycle of a Legal Finance Asset Craig Arnott Andrew Farthing Evan Meyerson
Slide 70: Three stages of a legal finance asset to maximize our returns
Three stages of a legal finance asset to maximize our returns 1. Underwriting 2. Deal Structure 3. Case Management How do new How do we structure How do we manage our opportunities move legal finance agreements portfolio after funding and through the funnel from for optimal return and provide value
Slide 71: The top of the funnel is expansive and requires efficient filtering
The top of the funnel is expansive and requires efficient filtering to identify actionable opportunities N U M B E R O F M AT T E R S The Underwriting Funnel 2024 Total inquiries and opportunities 2,000+ Initial screening 806 Diligence and pricing 296 2025 Investor Day 71
Slide 72: We consider multiple factors when underwriting legal finance assets
We consider multiple factors when underwriting legal finance assets Merits Damages Collection risk What factors influence the What is the size of the Will defendants be able to success of the case? case? satisfy a judgment? • Facts and relevant law • Alignment of • Comprehensive credit incentives be
Slide 73: Our deals structures are flexible
Our deals structures are flexible Litigant Law firm Counterparty Single case Portfolio Collateral Fee/expense Monetizations funding Client Need 2025 Investor Day 73
Slide 74: Our non-recourse capital is custom-priced for each asset
Our non-recourse capital is custom-priced for each asset PRICING COMPONENTS Fixed Variable Duration Protection Hybrid Return of capital Return of capital Return of capital Combination of + + + elements to address A multiple % of settlement or A specified rate client needs and (or fixed) award optimi
Slide 75: Risk selection efficiency has increased with expansion of lifetime data set
Risk selection efficiency has increased with expansion of lifetime data set N U M B E R O F M AT T E R S The Underwriting Funnel 2024 Total inquiries and opportunities 2,000+ Initial screening 806 Diligence and pricing 296 Commitments 55 committee Funding agreement 41 2025 Investor Day 75
Slide 76: Case management adds value after the funding agreement
Case management adds value after the funding agreement Budgeting and Follow-on Second Set of Settlement Deployments Expert Eyes Modeling • Make payments to counsel • Use experience to solve the • Use proprietary data to question: How are we going evaluate and advise on • Review of invoices and to wi
Slide 77: We select, fund and manage the best assets to maximize returns for shareholders
We select, fund and manage the best assets to maximize returns for shareholders Strong in-house underwriting to identify attractive assets Efficient funding structures that protect our capital Active post-close case management to maximize realization 2025 Investor Day 77
Slide 78: New Opportunities
New Opportunities Travis Lenkner
Slide 79: Law: One of the largest industries in the world
Law: One of the largest industries in the world G L O B A L L E G A L I N D U S T RY LEGAL ASSETS LEGAL SERVICES Value of all legal assets Law firms (judgments, awards and settlements) Third-party service providers Massive and difficult to estimate A multi-trillion- More than $1 trillion globally 2
Slide 80: Legal services are a $1+ trillion global industry
Legal services are a $1+ trillion global industry Estimated annualized Estimated annualized global legal fees legal & regulatory services revenue $800+B $200+B 1 2 Segments include: • Legal Tech $32B USA Europe Rest of the World • ALSPs $30B • Compliance $29B 3 Estimated annual revenues of largest 2
Slide 81: Growing US lawyer population supports continued sector expansion
Growing US lawyer population supports continued sector expansion Mega firms draw the most attention… …but most lawyers are in small firms and rely heavily on outside service providers. U S L AW Y E R & L AW F I R M P O P U L AT I O N 1 Population Growth ― Indexed Since 1900 Law Firm Size Number of L
Slide 82: Strategic initiatives to drive growth
Strategic initiatives to drive growth 1 2 3 Law Firm Equity Alternative Delivery Legal Tech / of Legal Services Artificial Intelligence 2025 Investor Day 82
Slide 83: Law firm equity
Law firm equity U N I T E D S TAT E S UNITED KINGDOM Trend toward fewer Liberalized ownership rules restrictions on since 2008 non-lawyer ownership First, listed firms; now a Arizona: More than 100 growing private market alternative business structure 1 (ABS) licenses since 2021 Burford has made equ
Slide 84: Alternative legal service providers
Alternative legal service providers GLOBAL ALSP MARKET 1 ($ in billions) Offer cost-effective alternatives 20% 29 to law firms by handling routine legal tasks CAGR 21 Growing quickly and increasingly 14 incorporating technology Frequently manage large volumes of work at lower cost 2019 2021 2023 202
Slide 85: The legal technology market is booming
The legal technology market is booming 1 • Historically tech-resistant, the legal profession is now rushing to catch up • Unprecedented levels of innovation and investment in tech specific to the legal industry Share of Law Department Budgets Legal technology market revenues Spent on Legal Technolog
Slide 86: Strategic initiatives to drive growth
Strategic initiatives to drive growth 1 2 3 Law Firm Equity Alternative Delivery Legal Tech / of Legal Services Artificial Intelligence 2025 Investor Day 86
Slide 87: Financial Overview
Financial Overview Jordan Licht
Slide 88: Diving into Burford financials
Diving into Burford financials 1 Cash drives the business 2 Unit economics are attractive 3 Variance from GAAP will always exist 4 Generate a long-term ROE around 20% 2025 Investor Day 88
Slide 89: Our financial reporting is built around our two business segments
Our financial reporting is built around our two business segments Total Segments (Burford-only) Reflects financial results and business economics attributable to BUR shareholders Principal Finance segment Asset Management and Other Services segment FY24 Revenues Total Portfolio FY24 Revenues Total P
Slide 90: Revenue recognition has been lumpy while cash results trend upwards
Revenue recognition has been lumpy while cash results trend upwards 1 Total revenues Realizations2 ($ in millions) ($ in millions) 977 896 641 509 531 460 311 251 361 192 388 299 279 156 203 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Capital Provision Income Asset Management & Other Income Ne
Slide 91: Cash versus fair value dynamics are key to understanding our financials
Cash versus fair value dynamics are key to understanding our financials Cash basis life cycle Fair value life cycle Milestones drive Realization Proceeds “step-function” increase in fair value Each period FV determined by net present value of future deployments and risk adjusted litigation outcome C
Slide 92: Capital provision income and fair value bridge
Capital provision income and fair value bridge Fair value of capital provision assets Net realized gains reflect the sum of gains or losses FY24 bridge relative to cost generated during the period Principal Finance ($ in millions) 166 Net realized gains recognized as capital provision 243 income may
Slide 93: Operating leverage
Operating leverage Operating expenses ex long-term incentive compensation1 Compensation and benefits2 (OpEx as % of group-wide portfolio at fair value) (FY24 illustrative breakout) Total Segments (Burford-only) Total Segments (Burford-only) (In parentheses, GAAP which includes long-term incentive co
Slide 94: We maintain a laddered debt structure with leverage well below covenants
We maintain a laddered debt structure with leverage well below covenants Maturity of debt outstanding Consolidated indebtedness to net tangible equity ratio1 ($ in millions) 675 0.77x 0.77x 0.71x Weighted Average 0.67x 7.3% Cost of Debt Weighted Average 4.5 yrs Life of Debt 400 360 0.43x 220 129 202
Slide 95: Unit Economics and Target Return on Equity
Unit Economics and Target Return on Equity
Slide 96: Current portfolio: Modeled realizations excluding YPF-related assets
Current portfolio: Modeled realizations excluding YPF- related assets Active portfolio1 as of December 31, 2024 2 Win Node $9.6 M O D E L E D AT F U L L C O N C L U S I O N $4.5 110% $2.2 ($ in billions) billion billion Litigation Risk Premium3 Modeled Modeled Estimated and Realizations5 ROIC6 Futur
Slide 97: Return profiles vary significantly across asset vintages
Return profiles vary significantly across asset vintages 1 As of December 31, 2024 Realized since ($ in millions) inception3 Total Deployments2 IRR 26% Concluded $1,786 ROIC 87% Active $1,663 WAL of active WAL4 2.6 3.1 years Realizations deployed cost Deployments Active Concluded Vintage 2009 2010 2
Slide 98: Our opportunity set presents a range of risk/return profiles
Our opportunity set presents a range of risk/return profiles Illustrative IRR Grid (based on $1 of capital invested at time zero) 160% 160% 89% 61% 47% 38% 31% 27% 24% 21% 140% 140% 79% 55% 42% 34% 28% 24% 21% 19% ROIC (%) 120% 120% 69% 48% 37% 30% 25% 22% 19% 17% 100% 100% 59% 41% 32% 26% 22% 19% 1
Slide 99: ROE: Unit economics on $100 of capital provision assets
ROE: Unit economics on $100 of capital provision assets 20% Gross IRR 23% Gross IRR 26% Gross IRR Capital Provision Income 20%, 23% and 26% IRR on portfolio 20.0 23.0 26.0 Asset Management Income 40% BOF-C profit share 2.6 3.0 3.4 Interest on Cash 15%, 12.5% and 10% liquidity position (4% interest)
Slide 100: ROE will be influenced by a number of factors
ROE will be influenced by a number of factors Headwinds to ROE Targets Tailwinds to ROE Targets 1 YPF is a large portion of our asset base 1 Significant pandemic backlog remains At ~40% of fair value, it can depress ROE in $768 million of active deployed cost remains in pre- periods where we don’t h
Slide 101: Burford's financial business model is straightforward
Burford’s financial business model is straightforward 1 Cash drives the business 2 Unit economics are attractive 3 Variance from GAAP will always exist 4 Generate a long-term ROE around 20% 2025 Investor Day 101
Slide 102: Closing Remarks
Closing Remarks Christopher Bogart
Slide 103: Aspirations for the legal finance platform
Aspirations for the legal finance platform: Focus on scale, cash generation and strong return on equity Continue to grow Produce Generate a long-term return on earnings capacity: $4.5 billion equity around Double the in realizations from portfolio base by end of 2030 the current portfolio 20% …measu
Slide 104: The YPF matter is a fundamental example of our business model
The YPF matter is a fundamental example of our business model…but scale makes it a valuation challenge The process to bring these assets to a conclusion is complex…and it will be noisy at times We remain well-positioned to generate substantial realizations on a matter that perfectly demonstrates our
Slide 105: We have a significant opportunity to pursue new revenue streams within the legal ecosystem
We have a significant opportunity to pursue new revenue streams within in the legal ecosystem Estimated annualized Estimated annualized global legal fees legal & regulatory services revenue $800+B 1 $200+B 2 Alternative Delivery Legal Tech / Law Firm Equity of Legal Services Artificial Intelligence
Slide 106: Burford's value proposition for investors looking forward
Burford’s value proposition for investors looking forward Deliver growth, cash and ROE from the legal finance portfolio Monetize YPF-related assets Introduce new revenue streams within the legal ecosystem 2025 Investor Day 106
Slide 107: |Burtord
|Burtord
Slide 108: Appendix
Appendix |Burford
Slide 109: Footnotes
Footnotes
Slide 110: Evolution & Growth / Portfolio Trends footnotes
Evolution & Growth / Portfolio Trends footnotes Slide 8 1) Litigation Finance Insider, at https://litigationfinanceinsider.com/c/league-leaders/. Slide 11 1) We have received financing inquiries from 94 of the 100 largest US law firms by revenue according to the 2024 rankings by The American Lawyer.
Slide 111: Evolution & Growth / Portfolio Trends footnotes
Evolution & Growth / Portfolio Trends footnotes Slide 22 1) Data set reflects the aggregate returns on invested capital of the universe of the 62 fully concluded Principal Finance assets that we have modeled since each asset’s inception arrayed by their modeled risk of total loss at their inception.
Slide 112: Portfolio Trends footnotes
Portfolio Trends footnotes Slide 34 1) Lifetime loss rate reflects realized losses as a percentage of deployed capital from fully and partially concluded assets. 2) Reflects fully and partially concluded assets with a ROIC of 0% or less where the net loss is below $1 million. Slide 35 1) Data set re
Slide 113: Portfolio Trends / Burford Market Opportunity footnotes
Portfolio Trends / Burford Market Opportunity footnotes Slide 42 1) Includes all fully and partially concluded assets. 2) 2021 Investor Day portfolio performance reflects fully and partially concluded assets that were active as of June 2021. Slide 44 1) While Burford offers in this Presentation its
Slide 114: Burford Market Opportunity / New Opportunities footnotes
Burford Market Opportunity / New Opportunities footnotes Slide 52 1) ALM VerdictSearch, “The Top 100 US Verdicts of 2023”. 2) US Courts: https://www.uscourts.gov/data-news/reports/statistical-reports/federal-judicial-caseload-statistics/federal-judicial-caseload-statistics-2024. 3) Court Statistics:
Slide 115: New Opportunities / Financial Overview footnotes
New Opportunities / Financial Overview footnotes Slide 81 1) Data sources are American Bar Association National Lawyer Population Survey 2024, US Census Bureau. Slide 83 1) https://www.reuters.com/legal/government/arizona-hits-new-milestone-under-loosened-law-firm-ownership-rules-2024-09-25/. Slide
Slide 116: Financial Overview footnotes
Financial Overview footnotes Slide 93 1) Operating expenses excluding long-term incentive compensation are reflected as a percentage of the group-wide portfolio at fair value (excluding undrawn commitments) both including and excluding the fair value of YPF-related assets on the balance sheet. 2) Sh
Slide 117: Financial Overview / Closing Remarks footnotes
Financial Overview / Closing Remarks footnotes Slide 97 1) Excludes the impact of balance sheet interests in private funds. 2) Deployments shown in the chart are reflected in the vintage year of the related asset commitment, while actual cash deployment is typically staged over the life of an asset.
Slide 118: Financial Overview footnotes - ROE Unit Economics Detail
Financial Overview footnotes - ROE Unit Economics Detail 20% IRR 23% IRR 26% IRR Calculation Income Statement Capital provision income (CPI) 20.0 23.0 26.0 AxB Asset management income 2.6 3.0 3.4 BxCxD Inputs 20% IRR 23% IRR 26% IRR Interest on cash 0.6 0.5 0.4 AxExF A Capital provision assets 100 1
Slide 119: Reconciliations
Reconciliations
Slide 120: Revenues
Revenues For the year ended December 31, 2024 Asset Principal Management and Total segments Reconciling ($ in thousands) Finance Other Services (Burford-only) items Consolidated Revenues Capital provision income/(loss) 388,124 - 388,124 163,942 552,066 Plus/(Less): Third-party interests in capital p
Slide 121: Revenues (continued)
Revenues (continued) For the year ended December 31, 2022 Asset Principal Management and Total segments Reconciling ($ in thousands) Finance Other Services (Burford-only) items Consolidated Revenues Capital provision income/(loss) 202,878 - 202,878 116,230 319,108 Plus/(Less): Third-party interests
Slide 122: Revenues (continued)
Revenues (continued) For the year ended December 31, 2020 Asset Principal Management and Total segments Reconciling ($ in thousands) Finance Other Services (Burford-only) items Consolidated Revenues Capital provision income/(loss) 278,691 - 278,691 36,257 314,948 Plus/(Less): Third-party interests i
Slide 123: Realizations
Realizations Third-party Total segments Adjusted ($ in thousands) Consolidated interests (Burford-only) Adjustments Burford-only For the year ended December 31, 2024 907,042 (260,166) 646,876 (5,752) 641,124 For the year ended December 31, 2023 708,293 (195,638) 512,655 17,971 530,626 For the year e
Slide 124: Operating expenses
Operating expenses For the year ended December 31, 2024 Third-party Total segments ($ in thousands) Consolidated interests (Burford-only) Operating expenses Compensation and benefits Salaries and benefits 42,418 - 42,418 Annual incentive compensation 29,210 - 29,210 Share-based and deferred compensa
Slide 125: Operating expenses (continued)
Operating expenses (continued) For the year ended December 31, 2023 Third-party Total segments ($ in thousands) Consolidated interests (Burford-only) Operating expenses Compensation and benefits Salaries and benefits 39,788 - 39,788 Annual incentive compensation 32,697 - 32,697 Share-based and defer
Slide 126: Operating expenses (continued)
Operating expenses (continued) For the year ended December 31, 2022 Third-party Total segments ($ in thousands) Consolidated interests (Burford-only) Operating expenses Compensation and benefits Salaries and benefits 34,207 - 34,207 Annual incentive compensation 24,338 - 24,338 Share-based and defer
Slide 127: Operating expenses (continued)
Operating expenses (continued) For the year ended December 31, 2021 Third-party Total segments ($ in thousands) Consolidated interests (Burford-only) Operating expenses Compensation and benefits Salaries and benefits 34,333 - 34,333 Annual incentive compensation 22,145 - 22,145 Share-based and defer
Slide 128: Operating expenses (continued)
Operating expenses (continued) For the year ended December 31, 2020 Third-party Total segments ($ in thousands) Consolidated interests (Burford-only) Operating expenses Compensation and benefits Salaries and benefits 31,483 - 31,483 Annual incentive compensation 22,772 - 22,772 Share-based and defer
Slide 129: Consolidated indebtedness to net tangible equity ratio
Consolidated indebtedness to net tangible equity ratio ($ in thousands) December 31, 2024 December 31, 2023 December 31, 2022 December 31, 2021 December 31, 2020 Debt payable 1,763,612 1,534,730 1,252,270 1,022,557 667,814 Less: Debt attributable to Unrestricted Subsidiaries - - - - - Consolidated I
Slide 130: Net realized gains
Net realized gains 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 (1,116) 1
Slide 131: YPF-related assets
YPF-related assets December 31, 2024 Total Third-party segments ($ in thousands) Consolidated interests (Burford-only) Capital provision assets 5,243,917 (1,672,693) 3,571,224 Deployed cost 2,341,377 (668,784) 1,672,593 Deployed cost on YPF-related assets 76,405 (6,829) 69,576 Deployed cost, excludi
Slide 132: |Burtord
|Burtord