Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2023 shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2023 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-39511 |
Entity Registrant Name | BURFORD CAPITAL LIMITED |
Entity Incorporation, State or Country Code | Y7 |
Entity Address, Address Line One | Oak House, Hirzel Street |
Entity Address, City or Town | St. Peter Port |
Entity Address, Country | GG |
Entity Address, Postal Zip Code | GY1 2NP |
Title of 12(b) Security | Ordinary shares, no par value |
Trading Symbol | BUR |
Security Exchange Name | NYSE |
Entity Common Stock, Shares Outstanding | 218,962,441 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Financial Statement Error Correction [Flag] | true |
Document Financial Statement Restatement Recovery Analysis [Flag] | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Entity Central Index Key | 0001714174 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Auditor Name | Ernst & Young LLP |
Auditor Location | Guernsey, Channel Islands |
Auditor Firm ID | 1438 |
Business Contact [Member] | |
Document Information [Line Items] | |
Contact Personnel Name | Mark N. Klein |
Contact Personnel Fax Number | (646) 736-1986 |
Entity Address State Or Province | NY |
Entity Address, Address Line One | 350 Madison Avenue |
Entity Address, City or Town | New York |
Entity Address, Postal Zip Code | 10017 |
City Area Code | 212 |
Local Phone Number | 235-6820 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Plus/(Less): Third-party interests in capital provision assets | $ (279,263) | $ (494) | $ 195 |
Marketable securities income/(loss) and bank interest | 12,208 | (7,744) | 1,865 |
Other income | 4,392 | (759) | 6,320 |
Total revenues | 1,086,902 | 319,227 | 217,330 |
Compensation and benefits | |||
Salaries and benefits | 46,811 | 35,131 | 34,333 |
Annual incentive compensation | 32,697 | 24,338 | 22,145 |
Share-based compensation | 14,105 | 10,277 | 9,272 |
Legacy asset recovery incentive compensation including accruals | 17,342 | 1,908 | 35,488 |
Long-term incentive compensation including accruals | 110,129 | 14,692 | 11,741 |
General, administrative and other | 33,656 | 29,681 | 30,467 |
Case-related expenditures ineligible for inclusion in asset cost | 16,496 | 8,245 | 5,300 |
Total operating expenses | 271,236 | 124,272 | 148,746 |
Operating income/(loss) | 815,666 | 194,955 | 68,584 |
Other expenses | |||
Finance costs | 99,135 | 77,389 | 58,647 |
(Gains)/losses on debt extinguishment | 875 | 1,649 | |
Foreign currency transactions (gains)/losses | (21,752) | 7,674 | 5,499 |
Total other expenses | 77,383 | 85,938 | 65,795 |
Income/(loss) before income taxes | 738,283 | 109,017 | 2,789 |
(Provision for)/benefit from income taxes | (20,084) | (11,558) | (9,727) |
Net income/(loss) | 718,199 | 97,459 | (6,938) |
Net income attributable to non-controlling interests | 107,677 | 66,953 | 21,813 |
Net income/(loss) attributable to Burford Capital Limited shareholders | $ 610,522 | $ 30,506 | $ (28,751) |
Net income/(loss) attributable to Burford Capital Limited per ordinary share | |||
Basic | $ 2.79 | $ 0.14 | $ (0.13) |
Diluted | $ 2.74 | $ 0.14 | $ (0.13) |
Weighted average ordinary shares outstanding | |||
Basic | 218,865,816 | 218,757,232 | 219,049,877 |
Diluted | 223,014,890 | 221,802,486 | 219,049,877 |
Capital provision income/(loss) | |||
Revenues | $ 1,341,923 | $ 319,108 | $ 194,554 |
Asset management income | |||
Revenues | $ 7,642 | $ 9,116 | $ 14,396 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) | |||
Net income/(loss) | $ 718,199 | $ 97,459 | $ (6,938) |
Other comprehensive income/(loss) | |||
Foreign currency translation adjustment | (39,737) | 44,089 | (2,222) |
Comprehensive income/(loss) | 678,462 | 141,548 | (9,160) |
Less: Comprehensive income attributable to non-controlling interests | 107,677 | 66,953 | 21,813 |
Comprehensive income/(loss) attributable to Burford Capital Limited shareholders | $ 570,785 | $ 74,595 | $ (30,973) |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 220,549 | $ 107,658 |
Marketable securities | 107,561 | 136,358 |
Other assets | 63,464 | 51,856 |
Due from settlement of capital provision assets | 265,540 | 116,582 |
Capital provision assets | 5,045,388 | 3,735,556 |
Goodwill | 133,965 | 133,912 |
Deferred tax asset | 927 | 6,437 |
Total assets | 5,837,394 | 4,288,359 |
Liabilities | ||
Debt interest payable | 34,416 | 16,815 |
Other liabilities | 143,015 | 93,904 |
Long-term incentive compensation payable | 162,318 | 61,769 |
Debt payable | 1,534,730 | 1,252,270 |
Financial liabilities relating to third-party interests in capital provision assets | 704,196 | 425,205 |
Deferred tax liability | 50,939 | 51,326 |
Total liabilities | 2,629,614 | 1,901,289 |
Commitments and contingencies (Note 21) | ||
Shareholders' equity | ||
Ordinary shares, no par value; unlimited shares authorized; 219,313,388 ordinary shares issued and 218,962,441 ordinary shares outstanding at December 31, 2023 and 219,049,877 ordinary shares issued and 218,581,877 ordinary shares outstanding at December 31, 2022 | 602,238 | 598,813 |
Additional paid-in capital | 36,545 | 26,305 |
Accumulated other comprehensive income | 7,312 | 47,049 |
Treasury shares of 350,947 at $12.76 cost at December 31, 2023 and 468,000 at $8.01 cost at December 31, 2022 | (4,479) | (3,749) |
Retained earnings | 1,649,242 | 1,074,166 |
Total Burford Capital Limited equity | 2,290,858 | 1,742,584 |
Non-controlling interests | 916,922 | 644,486 |
Total shareholders' equity | 3,207,780 | 2,387,070 |
Total liabilities and shareholders' equity | $ 5,837,394 | $ 4,288,359 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | ||
Common Stock, No Par Value | $ 0 | $ 0 |
Common Stock, Shares Authorized | Unlimited | Unlimited |
Common Stock, Shares Issued | 219,313,388 | 219,049,877 |
Common Stock, Shares Outstanding | 218,962,441 | 218,581,877 |
Treasury shares | 350,947 | 468,000 |
Treasury shares per share | $ 12.76 | $ 8.01 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Cash flows from operating activities: | ||||
Net income/(loss) | $ 718,199 | $ 97,459 | $ (6,938) | |
Adjustments to reconcile net income/(loss) to net cash (used in)/provided by operating activities: | ||||
Capital provision income | (1,341,923) | (319,108) | (194,554) | |
(Income)/loss on marketable securities | (5,599) | 10,736 | 1,567 | |
Other income | (4,392) | 759 | (6,320) | |
Share-based compensation | 8,747 | 7,782 | 8,823 | |
Amortization and depreciation of debt issuance costs and property and equipment | 5,525 | 4,362 | 3,193 | |
Deferred tax (benefit)/expense | 5,863 | 9,356 | 11,613 | |
Other | (13,149) | 13,629 | 3,920 | |
Changes in operating assets and liabilities: | ||||
Proceeds from capital provision assets | 559,362 | 387,786 | 396,415 | |
(Funding) of capital provision assets | (682,027) | (727,298) | (672,931) | |
Net proceeds/(funding) of marketable securities | 34,471 | 27,866 | (160,360) | |
Net proceeds/(funding) from financial liabilities at fair value through profit or loss | 3,333 | |||
Proceeds from other income | 7,875 | 3,186 | 3,974 | |
Proceeds from break fee income | 650 | |||
(Increase)/decrease in other assets | (3,613) | (5,511) | 1,369 | |
Increase/(decrease) in other liabilities | 156,338 | 19,088 | 25,097 | |
Net increase/(decrease) on financial liability to third-party investment | 278,991 | 471 | (232) | |
Net cash provided/(used) by operating activities | (274,682) | (466,104) | (585,364) | |
Cash flows from investing activities: | ||||
Purchases of property and equipment | (3,212) | (407) | (285) | |
Net cash provided/(used) by investing activities | (3,212) | (407) | (285) | |
Cash flows from financing activities: | ||||
Issuance of debt, net of original issue discount | 394,464 | 357,271 | 400,000 | |
Debt issuance costs | (8,461) | (7,912) | (8,742) | |
Redemption of debt | (129,970) | (79,911) | (33,929) | |
Dividends paid on ordinary shares | (27,499) | (27,665) | (41,050) | |
Payments for treasury share purchases | (3,759) | (3,749) | ||
Acquisition of ordinary shares to meet share-based payment obligations | (4,291) | (3,686) | ||
Third-party net capital contribution/(distribution) | 164,759 | 165,388 | 132,236 | |
Net cash provided/(used) by financing activities | 389,534 | 399,131 | 444,829 | |
Net increase/(decrease) in cash and cash equivalents | 111,640 | (67,380) | (140,820) | |
Cash and cash equivalents at beginning of period | 107,658 | 180,255 | 322,085 | |
Effect of exchange rate changes on cash and cash equivalents | 1,251 | (5,217) | (1,010) | |
Cash and cash equivalents at end of period | 220,549 | 107,658 | 180,255 | |
Supplemental disclosure | ||||
Cash received from interest and dividend income | 6,438 | 3,462 | 3,706 | |
Cash paid for debt interest | (77,210) | (70,781) | (51,270) | |
Cash received from income tax refund | 729 | 1,199 | ||
Cash paid for income taxes | $ (14,050) | $ (1,840) | (1,305) | |
Assets received in-kind | [1] | 3,290 | ||
Contributions paid in-kind | [1] | 1,034 | ||
Other Limited Partners | ||||
Supplemental disclosure | ||||
Contributions paid in-kind | $ 2,300 | |||
[1]A consolidated entity, in which Burford had a limited partner interest, liquidated during the year ended December 31, 2021 and distributed in-kind a capital provision asset of $3.3 million, which is held directly by Burford ($1.0 million) and other limited partners ($2.3 million) of the liquidated entity. |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total Burford Capital Limited Equity | Ordinary shares | Treasury shares | Additional Paid-in Capital | Retained earnings | Accumulated other comprehensive income (Loss) | Noncontrolling Interest | Total |
Balance at the beginning at Dec. 31, 2020 | $ 1,762,758 | $ 598,813 | $ 22,529 | $ 1,136,274 | $ 5,142 | $ 260,352 | $ 2,023,110 | |
Balance at the beginning (in shares) at Dec. 31, 2020 | 219,049,877 | |||||||
Changes in equity | ||||||||
Net income/(loss) | (28,751) | (28,751) | 21,813 | (6,938) | ||||
Foreign currency translation adjustment | (2,222) | (2,222) | (2,222) | |||||
Ordinary shares purchased by the Burford Capital Employee Benefit Trust | (3,686) | (3,686) | (3,686) | |||||
Ordinary shares distributed by the Burford Capital Employee Benefit Trust | (449) | 1,103 | (1,552) | (449) | ||||
Transfer RSU awards on vesting | (2,852) | 2,852 | ||||||
Share-based compensation | 9,272 | 9,272 | 9,272 | |||||
Dividends paid | (41,050) | (41,050) | (41,050) | |||||
Third-party net capital contribution/(distribution) | 129,980 | 129,980 | ||||||
Balance at the end at Dec. 31, 2021 | 1,695,872 | $ 598,813 | 26,366 | 1,067,773 | 2,920 | 412,145 | 2,108,017 | |
Balance at the end (in shares) at Dec. 31, 2021 | 219,049,877 | |||||||
Changes in equity | ||||||||
Net income/(loss) | 30,506 | 30,506 | 66,953 | 97,459 | ||||
Foreign currency translation adjustment | 44,089 | 44,089 | 44,089 | |||||
Acquisition of ordinary shares held in treasury | (3,749) | $ (3,749) | $ (3,749) | |||||
Acquisition of ordinary shares held in treasury (shares) | (468,000) | (468,000) | ||||||
Ordinary shares purchased by the Burford Capital Employee Benefit Trust | (4,291) | (4,291) | $ (4,291) | |||||
Ordinary shares distributed by the Burford Capital Employee Benefit Trust | (2,495) | (2,495) | (2,495) | |||||
Transfer RSU awards on vesting | (6,047) | 6,047 | ||||||
Share-based compensation | 10,277 | 10,277 | 10,277 | |||||
Dividends paid | (27,665) | (27,665) | (27,665) | |||||
Third-party net capital contribution/(distribution) | 165,388 | 165,388 | ||||||
Other | 40 | 40 | 40 | |||||
Balance at the end at Dec. 31, 2022 | 1,742,584 | $ 598,813 | $ (3,749) | 26,305 | 1,074,166 | 47,049 | 644,486 | 2,387,070 |
Balance at the end (in shares) at Dec. 31, 2022 | 219,049,877 | (468,000) | ||||||
Changes in equity | ||||||||
Net income/(loss) | 610,522 | 610,522 | 107,677 | 718,199 | ||||
Foreign currency translation adjustment | (39,737) | (39,737) | $ (39,737) | |||||
Issuance of ordinary shares for vested RSU awards | $ 3,425 | (3,425) | ||||||
Issuance of ordinary shares for vested RSU awards (in shares) | 263,511 | 263,511 | ||||||
Acquisition of ordinary shares held in treasury | (3,759) | $ (3,759) | $ (3,759) | |||||
Acquisition of ordinary shares held in treasury (shares) | (261,000) | (261,000) | ||||||
Distribution of ordinary shares for vested RSU awards | $ 3,029 | (3,029) | ||||||
Distribution of ordinary shares for vested RSU awards (shares) | 378,053 | |||||||
Transfer RSU awards on vesting | (5,358) | 2,589 | (7,947) | $ (5,358) | ||||
Share-based compensation | 14,105 | 14,105 | 14,105 | |||||
Dividends paid | (27,499) | (27,499) | (27,499) | |||||
Third-party net capital contribution/(distribution) | 164,759 | 164,759 | ||||||
Balance at the end at Dec. 31, 2023 | $ 2,290,858 | $ 602,238 | $ (4,479) | $ 36,545 | $ 1,649,242 | $ 7,312 | $ 916,922 | $ 3,207,780 |
Balance at the end (in shares) at Dec. 31, 2023 | 219,313,388 | (350,947) |
Organization
Organization | 12 Months Ended |
Dec. 31, 2023 | |
Organization | |
Organization | 1. Organization Burford Capital Limited (the “ Company Group The Company was incorporated as a company limited by shares under the Guernsey Companies Law on September 11, 2009. The Company has a single class of ordinary shares, which commenced trading on AIM in October 2009 and on the NYSE in October 2020, in each case, under the symbol “BUR”. The Company’s subsidiaries have issued bonds that are traded on the Main Market of the London Stock Exchange and unregistered senior notes in private placement transactions pursuant to Rule 144A and Regulation S under the Securities Act. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2023 | |
Summary of significant accounting policies | |
Summary of significant accounting policies | 2. Summary of significant accounting policies Basis of presentation The Group’s audited consolidated financial statements at and for the year ended December 31, 2023 and comparative periods have been prepared in accordance with US GAAP. Use of estimates The preparation of the Group’s consolidated financial statements requires management to make estimates that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities, in each case, at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Such estimates include, among others, the valuation of capital provision assets (which requires the use of Level 3 valuation inputs) and other financial instruments, the measurement of deferred tax balances (including valuation allowances) and the accounting for goodwill. Actual results could differ from those estimates, and such differences could be material. Consolidation The consolidated financial statements include the accounts of (i) the Company, (ii) its wholly owned or majority owned subsidiaries, (iii) the consolidated entities that are considered to be variable interest entities (“ VIEs In connection with private funds and other related entities where the Group does not own 100% of the relevant entity, the Group makes judgments about whether it is required to consolidate such entities by applying the factors set forth in US GAAP for VIEs or voting interest entities under Accounting Standards Codification (“ ASC Consolidation VIEs are entities that, by design, either (i) lack sufficient equity to permit the entity to finance its activities without additional subordinated financial support from other parties, (ii) have equity investors that (A) do not have the ability to make significant decisions relating to the entity’s operations through voting rights, (B) do not have the obligation to absorb the expected losses or (C) do not have the right to receive the residual returns of the entity or (iii) have equity investors’ voting rights that are not proportional to the economics, and substantially all of the activities of the entity either involve or are conducted on behalf of an investor that has disproportionately few voting rights. An entity is deemed to be the primary beneficiary of the VIE if such entity has both (i) the power to direct the activities that most significantly impact the VIE’s economic performance and (ii) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE. In determining whether the Group is the primary beneficiary of a VIE, the Group considers both qualitative and quantitative factors regarding the nature, size and form of its involvement with the VIE, such as its role establishing the VIE and its ongoing rights and responsibilities, the design of the VIE, its economic interests, servicing fees and servicing responsibilities and certain other factors. The Group performs ongoing reassessments to evaluate whether changes in the entity’s capital structure or changes in the nature of the Group’s involvement with the entity result in a change to the VIE designation or a change to the Group’s consolidation conclusion. The most significant judgments relate to the assessment of the Group’s exposure or rights to variable returns in Burford Opportunity Fund C LP (“ BOF-C Advantage Fund Colorado Strategic Value Fund and its investment as a limited partner in the Strategic Value Fund and the Advantage Fund, coupled with its power over the relevant activities as the fund manager, require the consolidation of BOF-C, the Strategic Value Fund and the Advantage Fund in the consolidated financial statements. Similarly, the Group has assessed that its shareholding in Colorado, coupled with its power over the relevant activities of Colorado through contractual agreements, require the consolidation of Colorado in the consolidated financial statements. The Group is deemed to have a controlling financial interest in VIEs in which it is the primary beneficiary and in other entities in which it owns more than 50% of the outstanding voting shares and other shareholders do not have substantive rights to participate in management. The assets of these consolidated VIEs are not available to the Company, and the creditors of these consolidated VIEs do not have recourse to the Company. For entities the Group controls but does not wholly own, the Group generally records a non-controlling interest within shareholders’ equity for the portion of the entity’s equity attributed to the non-controlling ownership interests. Accordingly, third-party share of net income or loss relating to non-controlling interests in consolidated entities is treated as a reduction or increase, respectively, of net income or loss in the consolidated statements of operations. With respect to Colorado, an entity the Group controls but does not wholly own, the Group records a financial liability within financial liabilities relating to third-party interests in capital provision assets for the portion of Colorado’s equity held by third parties. The third-party share of income or loss is included in third-party interests in capital provision assets in the consolidated statements of operations. All significant intercompany balances, transactions and unrealized gains and losses on such transactions are eliminated on consolidation. Third-party interests in capital provision assets Third-party interests in capital provision assets include the financial liability relating to third-party interests in Colorado as well as financial liabilities relating to third-party interests resulting from capital provision asset subparticipations recognized at fair value. Colorado holds a single financial asset and does not have any other business activity. Accordingly, Colorado does not meet the definition of a business, and the third-party interests in Colorado are accounted for as a collateralized borrowing rather than non-controlling interests in shareholders’ equity. Amounts included in the consolidated statements of financial position represent the fair value of the third-party interests in the related capital provision assets, and the amounts included in the consolidated statements of operations represent the third-party share of any gain or loss during the reporting period. Gains in the underlying capital provision asset result in increased financial liabilities to third-party interests in capital provision assets in the consolidated statement of financial position and negative adjustments in the consolidated statement of operations, presented as “(Less): Third-party interests in capital provision assets”. Conversely, losses in the underlying capital provision asset result in decreased financial liabilities to third-party interests in capital provision assets in the consolidated statement of financial position and positive adjustments in the consolidated statement of operations, presented as “Plus: Third-party interests in capital provision assets”. During the year ended December 31, 2023, the Group has renamed the line item in the consolidated statements of operations from “Gain/(loss) relating to third-party interests in capital provision assets” to “Plus/(Less): Third-party interests in capital provision assets” and has changed the order to include this line item directly beneath the line item “Capital provision income”. Reclassifications Certain reclassifications of the amounts for prior periods have been made to conform to the presentation for the current period, such as combining the “Insurance income/(loss)” and “Services income/(loss)” line items under the “Other income/(loss)” line item within the consolidated statements of operations. These reclassifications have no effect on previously reported results of operations or total shareholders’ equity. Revisions Certain voluntary corrections of the amounts for prior periods have been made as a result of immaterial errors to previously issued consolidated financial statements. These corrections have been appropriately referenced. Covid-19 pandemic and global economic market conditions The Covid-19 pandemic and restrictions on certain non-essential businesses have caused disruption in the United States and global economies. Although the clearing of court backlogs is underway, it continues to be gradual, uneven and characterized by meaningful dispersion across sectors and regions. The estimates and assumptions underlying the consolidated financial statements at December 31, 2023 and 2022 and for the years ended December 31, 2023, 2022 and 2021 include judgments about the financial markets and economic conditions, which may change over time. Among estimates and assumptions, certain inputs to the valuation of the Group’s capital provision assets were impacted as a result of the Covid-19 pandemic, including expected timing and amount of cash flows in the Group’s cash flow forecasts and applicable discount rates. As a result of the Russian Federation’s invasion of Ukraine in February 2022 (the “ Ukraine War ”), various nations, including the United States, have instituted economic sanctions and other responsive measures, which have resulted in an increased level of global economic and political uncertainty. At and for the years ended December 31, 2023 and 2022, the effects of the Ukraine War, including international sanctions imposed on Russian businesses and individuals, have not had a material impact on the Group’s consolidated financial statements. In addition, in October 2023, an armed conflict began in Israel, Gaza and surrounding areas, which has resulted in an increased level of global economic and political uncertainty. At and for the year ended December 31, 2023, the effects of the conflict in Israel and Gaza have not had a material impact on the Group’s consolidated financial statements. Cash and cash equivalents Cash and cash equivalents include funds held by depository institutions, money market funds and government securities with original maturities of three months or less when purchased. Interest income from cash and cash equivalents is recorded in marketable securities income/(loss) and bank interest in the consolidated statements of operations. The fair values of the money market funds included in cash and cash equivalents were $13.0 million and $1.0 million at December 31, 2023 and 2022, respectively, which represented their fair values due to their short-term nature and were categorized as Level 1 within the fair value hierarchy. Substantially all of the Group’s cash on deposit is in interest bearing accounts with major financial institutions that exceed insured limits. Statement of cash flows The core business purpose of the Group is the provision of capital and expertise, to clients or as a principal, in connection with (i) the underlying asset value of litigation claims and the enforcement of settlements, judgments and awards, (ii) the amount paid to law firms as legal fees and expenses and (iii) the value of assets affected by litigation. These contractual arrangements are presented as capital provision assets in the consolidated statements of financial position, and the returns on those capital provision assets form the principal source of revenue earned by the Group. The cash flows associated with capital provision assets are reported within cash flows from operating activities because the ongoing management of the capital provision assets is a key operating activity for the Group. Marketable securities Marketable securities primarily consist of government securities with original maturities longer than three months when purchased, corporate bonds, asset-backed securities and mutual funds. Marketable securities are recorded at fair value. Interest income on marketable securities is included in the overall change in fair value which is recognized in marketable securities income/(loss) and bank interest in the consolidated statements of operations. Bank interest Bank interest is recognized on an accruals basis and included in marketable securities income/(loss) and bank interest. Fair value of financial instruments The Group’s capital provision assets meet the definition of a financial instrument under ASC 825— Financial instruments Derivatives and hedging The Group has elected the fair value option for the Group’s equity method investments, marketable securities, due from settlement of capital provision assets and financial liabilities relating to third-party interests in capital provision assets to provide a consistent fair value measurement approach for all capital provision related activity. Such election is irrevocable and is applied to financial instruments on an individual basis at initial recognition. Financial instruments are recorded at fair value. The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. Fair value hierarchy US GAAP establishes a hierarchical disclosure framework that prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination of fair values as follows: ▪ Level 1 —quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date ▪ Level 2 —inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly ▪ Level 3 —unobservable inputs for the asset or liability All transfers into and out of these levels are recognized as if they have taken place at the beginning of each reporting period. Valuation processes The Group’s senior professionals are responsible for developing the policies and procedures for fair value measurement of assets and liabilities. Following origination and at each reporting date, the movements in the values of assets and liabilities are required to be reassessed in accordance with the Group’s accounting policies. For this analysis, the reasonableness of material estimates and assumptions underlying the valuation is discussed and the major inputs applied are verified by comparing the information in the valuation computation to contracts, asset status and progress information and other relevant documents . Valuation methodology for Level 1 assets and liabilities Level 1 assets and liabilities are comprised of listed instruments, including equities, fixed income securities and investment funds. All Level 1 assets and liabilities are valued at the quoted market price at the reporting date. Valuation methodology for Level 2 assets and liabilities Level 2 assets and liabilities are comprised of debt and equity securities that are not actively traded and are valued at the last quoted or traded price at the reporting date, provided there is evidence that the price is not assessed as significantly stale so as to warrant a Level 3 classification. Valuation methodology for Level 3 assets and liabilities Fair value represents the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The methods and procedures to determine fair value of assets and liabilities may include, among others, (i) The material estimates and assumptions used in the analyses of fair value include the status and risk profile of the underlying asset or liability and, as applicable, the timing and expected amount of cash flows based on the structure and agreement of the asset or liability, the appropriateness of any discount rates used and the timing of, and estimated minimum proceeds from, a favorable outcome. Discount rates and a discounted cash flow basis for estimating fair value are applied to assets and liabilities measured at fair value, as applicable, most notably the Group’s capital provision assets. Significant judgment and estimation go into the assumptions that underlie the analyses, and the actual values realized with respect to assets or liabilities, as applicable, could be materially different from values obtained based on the use of those estimates. Capital provision assets are fair valued using an income approach. The income approach estimates fair value based on estimated, risk-adjusted future cash flows, using a discount rate to reflect the funding risk of deploying capital for financing capital provision assets. The income approach requires management to make a series of assumptions, such as discount rate, the timing and amount of both expected cash inflows and additional financings and a risk-adjustment factor reflecting the uncertainty inherent in the cash flows primarily driven by litigation risk, which changes as a result of observable litigation events. These assumptions are considered Level 3 inputs. A cash flow forecast is developed for each capital provision asset based on the anticipated financing commitments, damages or settlement estimates and the Group’s contractual entitlement. Cash flow forecasts incorporate management’s assumptions related to creditworthiness of the counterparty and collectability. In cases where cash flows are denominated in a foreign currency, forecasts are developed in the applicable foreign currency and translated to US dollars. Capital provision assets are recorded at initial fair value, which is equivalent to the initial transaction price for a given capital provision asset, based on an assessment that it is an arm’s-length transaction between independent third parties and an orderly transaction between market participants. Using the cash flow forecast and a discount rate, an appropriate risk-adjustment factor is calculated to be applied to the forecast cash inflows to calibrate the valuation model to the initial transaction price. Each reporting period, the cash flow forecast is updated based on the best available information on damages or settlement estimates and it is determined whether there has been an objective event in the underlying litigation process, which would change the litigation risk and thus the risk-adjustment factor associated with the capital provision asset. The risk-adjustment factor as adjusted for any objective events in the underlying litigation process is referred to as the adjusted risk premium. For example, assume the risk premium at inception is calculated to be 65%, which is held constant until there is a milestone event. Assuming there is a favorable trial court ruling one year later for which the applicable milestone factor is 50%, then the risk premium would be adjusted to 32.5%, effectively releasing 50% of the original 65% risk premium haircut that was applied. Conversely, assuming there is a negative event one year later for which the applicable milestone factor is (50)%, then the risk premium would be adjusted to 82.5%, effectively closing the gap between the original risk premium of 65% and 100% by 50%. These objective events could include, among others: ▪ A significant positive ruling or other objective event prior to any trial court judgment ▪ A favorable trial court judgment ▪ A favorable judgment on the first appeal ▪ The exhaustion of as-of-right appeals ▪ In arbitration cases, where there are limited opportunities for appeal, issuance of a tribunal award ▪ An objective negative event at various stages in the litigation process Each reporting period, the updated risk-adjusted cash flow forecast is discounted at the then current discount rate to measure fair value. See note 15 ( Fair value of assets and liabilities In a small number of instances, the Group has the benefit of a secondary sale of a portion of an asset or liability. When this occurs, the market evidence is factored into the valuation process to maximize the use of relevant observable inputs. Secondary sales are evaluated for relevance, including whether such transactions are orderly, and weight is attributed to the market price accordingly, which may include calibrating the valuation model to observed market price. Non-controlling interests For entities that are consolidated, but not wholly owned, a portion of the income or loss and corresponding equity is allocated to owners other than the Company. The aggregate of the income or loss and corresponding equity that is not owned by the Company is included in non-controlling interests in the consolidated financial statements. Non-controlling interests also include ownership interests in certain consolidated private funds and VIEs. Non-controlling interests are presented as a separate component of shareholders’ equity in the consolidated statements of financial position. The primary components of non-controlling interests are separately presented in the consolidated statements of changes in equity to clearly distinguish the interest in the Group and other ownership interests in the consolidated entities. Net income/(loss) includes the net income/(loss) attributable to the holders of non-controlling interests in the consolidated statements of comprehensive income. Profits and losses are allocated to non-controlling interests in proportion to their relative ownership interests regardless of their basis. Non-controlling interests exclude the third-party interests in Colorado as it represents a consolidated entity that holds a single financial asset and does not have any other business activity. Asset management income Asset management income is derived from the governing agreements in place with the Group’s private funds. The rate or amount at which fees are charged, the basis on which such fees are calculated and the timing of payments vary across private funds and, as to a particular private fund, may also vary across investment options available to underlying investors in, or members of, the private fund. Management fees are generally based on an agreed percentage of a private fund’s commitments and/or amounts committed or deployed, depending on the private fund agreement. Management fees are recognized over time as the services are provided. In addition, the Group receives performance fees from its private funds, which are earned when contractually agreed performance levels are exceeded within specified performance measurement periods. The Group’s private funds (other than BOF-C and the Advantage Fund) use a so-called “European” structure for the payment of performance fees, whereby the manager is not paid any performance fees until private fund investors have had their entire capital investment repaid. This contrasts with a so-called “American” structure for the payment of performance fees, whereby the performance fees are paid on profitable resolutions as they occur. Performance fees are recognized when a reliable estimate of the performance fee can be made and it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. Insurance activities The Group (i) acts as an administrator in the sale of legal expenses insurance policies issued in the name of Great Lakes Reinsurance (UK) plc, a subsidiary of MunichRe, under a binding authority agreement, and (ii) underwrites legal expenses insurance policies through its wholly owned Guernsey insurer, Burford Worldwide Insurance Limited. Income earned from acting as insurance administrator and underwriting legal expenses insurance policies is included in “Other income”. Leases At the inception of any arrangement, the Group determines whether the arrangement is or contains a lease based on the unique facts and circumstances present in the arrangement. Leases are recognized as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Group. The Group recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. In calculating the present value, the Group uses its incremental borrowing rate at the lease commencement date as the interest rate implicit in the lease is not readily determinable. The lease agreements generally contain lease and non-lease components. Non-lease components primarily include payments for maintenance and utilities. The Group combines fixed payments for non-lease components with its lease payments and accounts for them together as a single lease component which increases the amount of its lease assets and liabilities. Payments under the lease arrangements are primarily fixed. Variable rents, if any, are expensed as incurred. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to the consolidated statements of operations over the period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The right-of-use asset is depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis. The right-of-use asset and associated lease liability are derecognized upon the termination of a lease agreement. The Group has elected to not recognize leases with an original term of one year or less in the consolidated statements of financial position. The Group typically only includes an initial lease term in its assessment of a lease arrangement, whereas options to renew a lease are not included in this assessment unless there is a reasonable certainty that the lease will be renewed. In the consolidated statements of financial position, right-of-use assets are included within other assets, and lease liabilities are included in other liabilities. Compensation and benefits Salaries and benefits Salaries and benefits include base salaries and employee benefits. Annual incentive compensation Annual incentive compensation includes discretionary and non-discretionary annual bonuses that are generally accrued over the related service period. Under certain non-discretionary arrangements, the Company may require that a portion of the incentive compensation distributed to its employees be allocated as RSUs under the LTIP. Such share-based awards are recorded as share-based compensation expense ratably over the relevant service period once granted. Share-based compensation Share-based compensation consists of RSUs with service-based and/or performance-based (which in turn may include performance-based and/or market-based) conditions. The fair value of these RSUs is estimated using the Monte-Carlo model at the grant date. The Group recognizes share-based compensation expense ratably over the relevant service period and accounts for forfeitures based on its estimates. Forfeiture estimates are trued up at the end of the vesting period to ensure that share-based compensation expense is recognized only for those RSUs that ultimately vest. Upon vesting of an RSU award, ordinary shares (which are either purchased on the open market or newly issued) are released to employees net of any applicable income tax withholding. Legacy asset recovery incentive compensation including accruals and long-term incentive compensation including accruals Incentive compensation, which includes the “phantom carry pool” program, primarily consists of a portion of gains on capital provision assets or performance fees earned from certain of the Group’s private funds that are allocated to employees. Incentive compensation amounts are not paid until the related gains on capital provision assets or performance fees have been realized in cash by the Group. Incentive compensation amounts are recorded as the related fair value gains or losses on capital provision assets or performance fees are recognized. Accordingly, incentive compensation amounts can be reversed during periods when there is a decline in fair value or performance revenues that were previously recorded. Business combinations Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measured at fair value on the acquisition date. Acquisition-related costs are expensed as incurred and included in the consolidated statements of operations. When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions at the acquisition date. Any contingent consideration to be transferred by the acquirer will be recognized at fair value at the acquisition date. Subsequent changes in the fair value of contingent consideration classified as an asset or liability are reflected in the consolidated statements of operations. Contingent consideration classified as equity is not remeasured, and its subsequent settlement is accounted for within shareholders’ equity. Goodwill Goodwill arises as a result of the acquisition of subsidiaries and represents the excess of the purchase consideration over the fair value of the Group’s share of the assets acquired and the liabilities assumed on the acquisition date. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purposes of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group’s reporting units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units. The Group tests goodwill acquired in a business combination annually for impairment. Foreign currency translation Functional and presentation currency Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which such entity operates (the “ functional currency presentation currency Certain subsidiaries operate and prepare financial statements denominated in pound sterling and Australian dollar. For the purposes of preparing consolidated financial statements, those subsidiaries’ assets and liabilities are translated at exchange rates prevailing at each applicable reporting date. Income and expense items are translated at average exchange rates for the reporting period. Non-monetary items are measured using the exchange rate at the date of the initial transaction. Any exchange rate-related differences are recognized in other comprehensive income/(loss). Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rate prevailing at the transaction date. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies, including intragroup balances, are recognized in the consolidated statements of operations as part of the income or loss, as applicable, for the period. See note 6 ( Capital provision assets Since April 2016, certain intragroup balances have been considered as part of a net investment in a foreign operation. Gains and losses on such balances are recognized in other comprehensive income/(loss), with gains of $0.2 million and $0.4 million recognized for the years ended December 31, 2023 and 2021, respectively, and a loss of $0.4 million recognized for the year ended December 31, 2022. Expenses All expenses are accounted for on an accruals basis. Finance costs Finance costs represent interest and issuance expenses of outstanding indebtedness calculated using the effective interest rate method recognized in the consolidated statements of operations. Gain/(loss) on debt extinguishment Gain/(loss) on debt extinguishment represents a gain or loss arising from the difference between the amortized cost and the cost of extinguishing the debt on the extinguishment date and is recognized in the consolidated |
Supplemental cash flow data
Supplemental cash flow data | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental cash flow data | |
Supplemental cash flow data | 3. Supplemental cash flow data The tables below set forth supplemental information with respect to the cash inflows and outflows for capital provision-direct and capital provision-indirect assets for the periods indicated. Year ended December 31, 2023 Capital provision- Capital provision- ($ in thousands) direct assets indirect assets Total Proceeds from capital provision assets 494,472 64,890 559,362 Increase in payable for capital provision assets 2,965 - 2,965 Funding of capital provision assets (505,893) (176,134) (682,027) Year ended December 31, 2022 Capital provision- Capital provision- ($ in thousands) direct assets indirect assets Total Proceeds from capital provision assets 349,062 38,724 387,786 Funding of capital provision assets (605,402) (121,896) (727,298) Year ended December 31, 2021 Capital provision- Capital provision- ($ in thousands) direct assets indirect assets Total Proceeds from capital provision assets 338,098 58,317 396,415 Decrease in payable for capital provision assets (256) - (256) Funding of capital provision assets (672,931) - (672,931) Capital provision-direct assets represent those assets for which the Group has provided financing directly to a client or to finance a principal position in a legal finance asset. BOF-C is included in capital provision-direct assets because the Group does not invest any capital in BOF-C. Capital provision-indirect assets represent those assets for which the Group’s capital is provided through a private fund as a limited partner contribution. For the years ended December 31, 2023 and 2022, activity in the capital provision-indirect assets related primarily to those assets held through the Advantage Fund, which closed during the year ended December 31, 2022, whereas capital provision-indirect assets consisted entirely of assets held through the Strategic Value Fund for the year ended December 31, 2021. |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income taxes | |
Income taxes | 4. Income taxes The Company qualifies for exemption from income tax in Guernsey under the Income Tax (Exempt Bodies) (Guernsey) Ordinance, 1989, as amended. This exemption has to be applied for annually and has been applied for, and granted, with respect to the year ended December 31, 2023. The Company’s operating subsidiaries in Australia, Ireland, Singapore, the United Kingdom and the United States are subject to taxation in such jurisdictions as determined in accordance with relevant tax legislation. In certain cases, an operating subsidiary of the Company may elect a transaction structure that could be subject to income tax in a country related to the transaction creating the capital provision asset. The effective tax rates were 3%, 11% and 349% for the years ended December 31, 2023, 2022 and 2021, respectively. The variability in the effective tax rate from period to period reflects the differing realization of income and losses, and the differing tax rates at which such income and losses are taxed, in Guernsey and other jurisdictions. During the year ended December 31, 2023, a substantial portion of income was recognized in low tax jurisdictions. Another significant factor in the determination of the effective tax rate is the change in the valuation allowance for the deferred tax asset arising from currently nondeductible interest expense. The table below sets forth the domestic and foreign income/(loss) before income taxes for the periods indicated. Years ended December 31, ($ in thousands) 2023 2022 2021 Domestic 11,695 10,735 (1,398) Foreign 726,588 98,282 4,187 Income/(loss) before income taxes 738,283 109,017 2,789 The table below sets forth the components of the tax charge based on the domestic statutory tax rate to the provision for/(benefit from) income taxes for the periods indicated. Years ended December 31, ($ in thousands) 2023 2022 2021 Statutory rate - - - Foreign rate differential 4,800 10,916 3,406 Compensation 23,848 5,245 5,554 Valuation allowance 446 (3,918) 14,874 Withholding tax 1,928 1,082 49 Non-deductible taxes - (802) - Prior period adjustments (468) 129 1,763 Impairment - - (39) Non-taxable income (1,984) - (15,541) Other, net (8,486) (1,094) (339) Provision for/(benefit from) income taxes 20,084 11,558 9,727 The table below sets forth an analysis for the foreign tax differential for the periods indicated. Years ended December 31, ($ in thousands) 2023 2022 2021 US subsidiaries at statutory tax rate 1,884 12,428 (10,961) Singapore subsidiaries at statutory tax rate (570) (586) 140 Irish subsidiaries at statutory tax rate 6 (11) 584 UK subsidiaries at statutory tax rate 3,487 (942) 13,632 Other (7) 27 11 Total 4,800 10,916 3,406 The table below sets forth the current and deferred components of the provision for/(benefit from) income taxes for the periods indicated. Years ended December 31, ($ in thousands) 2023 2022 2021 Current: Domestic (Guernsey) - - - Foreign - US federal and state 12,417 3,844 (984) Foreign - other and withholding 1,804 (1,642) (902) Total current provision for/(benefit from) income taxes 14,221 2,202 (1,886) Deferred: Domestic (Guernsey) - - - Foreign - US federal and state 8,982 6,728 9,989 Foreign - other (3,119) 2,628 1,624 Total deferred provision for/(benefit from) income taxes 5,863 9,356 11,613 Total provision for/(benefit from) income taxes 20,084 11,558 9,727 The table below sets forth the tax effect of temporary differences and carryforwards that comprise significant portions of gross deferred tax assets and liabilities at the dates indicated. December 31, ($ in thousands) 2023 2022 Deferred tax assets: Compensation and benefit accruals 22,443 10,087 Net operating loss carryforwards 3,692 219 Non-deductible and excess interest 32,260 28,114 Unrealized loss - - Acquisition costs 411 463 Capital lease 153 153 Other 1,236 928 Total deferred tax assets (1) 60,195 39,964 Deferred tax liabilities: Compensation and benefit accruals - - Depreciation and amortization (772) (257) Goodwill (12,873) (10,413) Unrealized gain (77,310) (57,319) Total deferred tax liabilities (1) (90,955) (67,989) Net deferred tax position (30,760) (28,025) Valuation allowance (19,252) (16,864) Net deferred tax liabilities (50,012) (44,889) 1. Total deferred tax assets and liabilities in this table are shown on a gross basis. Deferred tax assets and liabilities as shown in the consolidated statements of financial position are offset within each tax jurisdiction, to the extent that they relate to the same taxable entity. The table below sets forth the net operating loss carryforwards at the dates indicated. US net operating loss carryforwards reported in the Group’s consolidated financial statements reflect the US federal statutory rate and an estimated blended state rate, and the effective state rate in a particular year may differ from the blended state rate. December 31, ($ in thousands) 2023 2022 US federal (1) - - US state (2) 9,427 22,624 Foreign (1) 3,692 17,018 1. US federal and foreign net operating losses have indefinite carryforward periods. 2. US state operating losses will expire on various dates from 2038 through 2042. The valuation allowance primarily relates to interest expense, foreign net operating loss carryforwards and other deferred tax assets. The Company has performed an assessment of positive and negative evidence, including the nature, frequency and severity of cumulative financial reporting losses in recent years, the future reversal of existing temporary differences, predictability of future taxable income exclusive of reversing temporary differences of the character necessary to realize the tax assets, relevant carryforward periods, taxable income in carryback periods if carryback is permitted under applicable tax laws and prudent and feasible tax planning strategies that would be implemented, if necessary, to protect against the loss of the deferred tax assets that would otherwise expire. Although realization is not assured, based on the Company’s assessment, the Company has concluded that it is more likely than not that the remaining gross deferred tax assets will be realized and, as such, no additional valuation allowance has been provided. |
Segment reporting
Segment reporting | 12 Months Ended |
Dec. 31, 2023 | |
Segment reporting | |
Segment reporting | 5. Segment reporting There are two reportable segments, which reflects how the chief operating decision maker allocates resources and assesses performance: (i) capital provision, which comprises provision of capital to the legal industry or in connection with legal matters, both directly and through investment in the Group’s private funds; and (ii) asset management and other services, which includes the provision of services to the legal industry, including litigation insurance. Other corporate includes certain operating and non-operating activities that are not used internally to measure and evaluate the performance of the reportable segments. The tables below set forth certain information with respect to the Group’s reportable segments for the periods indicated. Year ended December 31, 2023 Reconciliation Asset Total Adjustment for Capital management and Other segments third-party Total ($ in thousands) provision other services corporate (Burford-only) interests (1) consolidated Capital provision income/(loss) 896,371 - - 896,371 445,552 1,341,923 Plus/(Less): Third-party interests in capital provision assets - - - - (279,263) (279,263) Asset management income/(loss)* - 63,712 - 63,712 (56,070) 7,642 Marketable securities income/(loss) and bank interest - - 12,067 12,067 141 12,208 Other income/(loss)* - 4,392 - 4,392 - 4,392 Total revenues 896,371 68,104 12,067 976,542 110,360 1,086,902 Operating expenses 197,478 18,727 52,333 268,538 2,698 271,236 Other expenses Finance costs 94,669 1,754 2,713 99,136 (1) 99,135 Foreign currency transactions (gains)/losses - - (21,737) (21,737) (15) (21,752) Total other expenses 94,669 1,754 (19,024) 77,399 (16) 77,383 Income/(loss) before income taxes 604,224 47,623 (21,242) 630,605 107,678 738,283 *Includes the following revenue from contracts with customers for services transferred over time - 64,473 - 64,473 (56,070) 8,403 1. Adjusted for third-party interests in non-wholly owned consolidated entities, which included BOF-C, the Strategic Value Fund, the Advantage Fund, Colorado and several other entities in which the Company holds investments and there is a third-party partner in, or owner of, those entities. Year ended December 31, 2022 Reconciliation Asset Total Adjustment for Capital management and Other segments third-party Total ($ in thousands) provision other services corporate (Burford-only) interests (1) consolidated Capital provision income/(loss) 202,878 - - 202,878 116,230 319,108 Plus/(Less): Third-party interests in capital provision assets - - - - (494) (494) Asset management income/(loss)* - 56,080 - 56,080 (46,964) 9,116 Marketable securities income/(loss) and bank interest - - (7,594) (7,594) (150) (7,744) Other income/(loss)* - (759) - (759) - (759) Total revenues* 202,878 55,321 (7,594) 250,605 68,622 319,227 Operating expenses 72,508 27,965 22,223 122,696 1,576 124,272 Other expenses Finance costs 71,792 1,780 3,817 77,389 - 77,389 (Gains)/Losses on debt extinguishment 812 20 43 875 - 875 Foreign currency transactions (gains)/losses - - 7,581 7,581 93 7,674 Total other expenses 72,604 1,800 11,441 85,845 93 85,938 Income/(loss) before income taxes 57,766 25,556 (41,258) 42,064 66,953 109,017 *Includes the following revenue from contracts with customers for services transferred over time - 55,321 - 55,321 (46,964) 8,357 1. Adjusted for third-party interests in non-wholly owned consolidated entities, which included BOF-C, the Strategic Value Fund, Colorado and several other entities in which the Company holds investments and there is a third-party partner in, or owner of, those entities. Year ended December 31, 2021 Reconciliation Asset Total Adjustment for Capital management and Other segments third-party Total ($ in thousands) provision other services corporate (Burford-only) interests (1) consolidated Capital provision income/(loss) 156,043 - - 156,043 38,511 194,554 Plus/(Less): Third-party interests in capital provision assets - - - - 195 195 Asset management income/(loss)* - 28,745 - 28,745 (14,349) 14,396 Marketable securities income/(loss) and bank interest - - 774 774 1,091 1,865 Other income/(loss)* - 6,320 - 6,320 - 6,320 Total revenues* 156,043 35,065 774 191,882 25,448 217,330 Operating expenses 90,343 33,280 21,488 145,111 3,635 148,746 Other expenses Finance costs 52,537 1,360 4,750 58,647 - 58,647 (Gains)/Losses on debt extinguishment 1,477 38 134 1,649 - 1,649 Foreign currency transactions (gains)/losses 17 - 5,482 5,499 - 5,499 Total other expenses 54,031 1,398 10,366 65,795 - 65,795 Income/(loss) before income taxes 11,669 387 (31,080) (19,024) 21,813 2,789 *Includes the following revenue from contracts with customers for services transferred over time - 35,065 - 35,065 (14,349) 20,716 1. Adjusted for third-party interests in non-wholly owned consolidated entities, which included BOF-C, the Strategic Value Fund, Colorado and several other entities in which the Company holds investments and there is a third-party partner in, or owner of, those entities. The tables below set forth the Group’s total assets by reporting segment at the dates indicated. Reconciliation Asset Total Adjustment for Capital management and Other segments third-party Total ($ in thousands) provision other services corporate (Burford-only) interests (1) consolidated Total assets at December 31, 2023 4,025,920 74,591 115,353 4,215,864 1,621,530 5,837,394 Total assets at December 31, 2022 2,970,841 97,863 149,722 3,218,426 1,069,933 4,288,359 1. Adjusted for third-party interests in non-wholly owned consolidated entities, which included BOF-C, the Strategic Value Fund, the Advantage Fund, Colorado and several other entities in which the Company holds investments and there is a third-party partner in, or owner of, those entities. |
Capital provision assets
Capital provision assets | 12 Months Ended |
Dec. 31, 2023 | |
Capital provision assets. | |
Capital provision assets | 6. Capital provision assets Capital provision assets are financial instruments that relate to the provision of capital in connection with legal finance. Capital provision-direct assets represent those assets for which the Group has provided financing directly to a client or to finance a principal position in a legal finance asset. BOF-C is included in capital provision-direct assets because the Group does not invest any capital in BOF-C. Capital provision-indirect assets represent those assets for which the Group’s capital is provided through a private fund as a limited partner contribution. For the years ended December 31, 2023 and 2022, activity in the capital provision-indirect assets related primarily to those assets held through the Advantage Fund, which closed during the year ended December 31, 2022, whereas capital provision-indirect assets consisted entirely of assets held through the Strategic Value Fund for the year ended December 31, 2021. The table below sets forth the changes in capital provision assets at the beginning and end of the relevant reporting periods. Years ended December 31, ($ in thousands) 2023 2022 At beginning of period 3,735,556 3,117,263 Deployments 682,027 727,298 Realizations (708,293) (426,734) Income/(loss) for the period 1,333,262 330,811 Foreign exchange gains/(losses) 2,836 (13,082) At end of period 5,045,388 3,735,556 Capital provision-direct assets 4,859,879 3,620,687 Capital provision-indirect assets 185,509 114,869 Total capital provision assets 5,045,388 3,735,556 Unrealized fair value at end of period 2,764,825 1,689,407 The table below sets forth the components of the capital provision income/(loss) for the periods indicated. Years ended December 31, ($ in thousands) 2023 2022 2021 Realized gains/(losses) 251,618 161,707 153,607 Fair value adjustment during the period, net of previously recognized unrealized gains transferred to realized gains 1,081,644 169,104 45,804 Income/(loss) on capital provision assets 1,333,262 330,811 199,411 Interest and other income/(loss) - 2,651 160 Impairment of other asset - - (500) Foreign exchange gains/(losses) 8,012 (6,357) (4,517) Net realized and unrealized loss on due from settlement of capital provision assets (1) (11,330) - Gains/(losses) on financial liabilities at fair value through profit or loss - 3,333 - Break fee income 650 - - Total capital provision income as reported in the consolidated statements of operations 1,341,923 319,108 194,554 Exchange differences arising from capital provision assets denominated in a currency other than the functional currency of the entity in which such capital provision assets are held are recognized in capital provision income/(loss) in the consolidated statements of operations. All other foreign exchange translation differences arising from capital provision assets held by non-US dollar functional currency entities are recognized in other comprehensive income/(loss) in the consolidated statements of comprehensive income. The currency of the primary economic environment in which the Group’s entity operates is referred to as the “functional currency” of the Group’s entity. On a consolidated basis, the capital provision-indirect assets represent legal finance assets in the Advantage Fund and, prior to its liquidation in the fourth quarter of 2023, equity securities and related claims in the Strategic Value Fund. |
Due from settlement of capital
Due from settlement of capital provision assets | 12 Months Ended |
Dec. 31, 2023 | |
Due from settlement of capital provision assets. | |
Due from settlement of capital provision assets | 7. Due from settlement of capital provision assets Amounts due from settlement of capital provision assets relate to the realization of capital provision assets that have successfully concluded and where there is no longer any litigation risk remaining. The settlement terms and timing of realizations vary by capital provision asset. The majority of settlement balances are received shortly after the respective period ends in which the capital provision assets have concluded, and all settlement balances are generally expected to be received within 12 months after the capital provision assets have concluded. The table below sets forth the changes in due from settlement of capital provision assets and the breakdown between current and non-current due from settlement of capital provision assets at the beginning and end of the relevant reporting periods. Years ended December 31, ($ in thousands) 2023 2022 At beginning of period 116,582 86,311 Transfer of realizations from capital provision assets 708,293 426,734 Interest and other income - 2,651 Proceeds from capital provision assets (559,362) (387,786) Realized loss (11,330) - Unrealized gain/(loss) on due from settlement of capital provision assets, net of previously recognized unrealized loss transferred to realized loss 11,329 (11,330) Foreign exchange gains/(losses) 28 2 At end of period 265,540 116,582 Current assets 260,370 112,832 Non-current assets 5,170 3,750 Total due from settlement of capital provision assets 265,540 116,582 |
Asset management income
Asset management income | 12 Months Ended |
Dec. 31, 2023 | |
Asset management income. | |
Asset management income | 8. Asset management income The table below sets forth the components of the asset management income for the periods indicated. Years ended December 31, ($ in thousands) 2023 2022 2021 Management fee income 7,642 7,321 8,667 Performance fee income - 1,795 5,729 Total asset management income 7,642 9,116 14,396 |
Long term incentive compensatio
Long term incentive compensation payable | 12 Months Ended |
Dec. 31, 2023 | |
Long term incentive compensation payable | |
Long term incentive compensation payable | 9. Long-term incentive compensation payable The table below sets forth the changes in the long-term incentive compensation payable at the beginning and end of the relevant reporting periods. During the year ended December 31, 2023, the Company recognized a charge in the amount of $69.2 million related to the YPF-related assets following the March 2023 Ruling and the September 2023 Final Judgment. During the fourth quarter of 2023, the entry into the New Employment Agreements with the Company’s Chief Executive Officer and Chief Investment Officer contributed an additional $16.9 million of incentive compensation accrual, excluding the YPF-related assets already included within the $69.2 million mentioned above. Years ended December 31, ($ in thousands) 2023 2022 At beginning of period 61,769 48,707 Long-term incentive compensation including accruals 110,129 14,692 Transfer to short-term payable within general expenses payable (3,656) (852) Cash paid (6,867) (729) Foreign exchange gains/(losses) 943 (49) At end of period 162,318 61,769 = f |
Marketable securities
Marketable securities | 12 Months Ended |
Dec. 31, 2023 | |
Marketable securities. | |
Marketable securities | 10. Marketable securities The table below sets forth the changes in marketable securities at the beginning and end of the relevant reporting periods. Years ended December 31, ($ in thousands) 2023 2022 At beginning of period 136,358 175,336 Purchases 40,404 61,609 Proceeds on disposal (74,875) (89,475) Net realized gains/(losses) on disposal (415) (1,647) Fair value movement 6,185 (9,682) Change in accrued interest (171) 593 Foreign exchange gains/(losses) 75 (376) At end of period 107,561 136,358 The table below sets forth the components of the total marketable securities income/(loss) and bank interest for the periods indicated. Years ended December 31, ($ in thousands) 2023 2022 2021 Net realized gains/(losses) on disposal (415) (1,647) (3,760) Changes in fair value 6,185 (9,682) 1,919 Interest and dividend income 2,453 2,812 2,615 Bank interest 3,985 773 1,091 Total marketable securities income/(loss) and bank interest 12,208 (7,744) 1,865 |
Other assets
Other assets | 12 Months Ended |
Dec. 31, 2023 | |
Other assets. | |
Other assets | 11. Other assets The table below sets forth the components of total other assets at the dates indicated. December 31 ($ in thousands) 2023 2022 Reinsurance assets 15,371 16,388 Right-of-use assets 13,851 12,716 Property and equipment 3,561 1,313 Prepayments 9,150 199 Other receivables 21,531 21,240 Total other assets 63,464 51,856 |
Other liabilities
Other liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Other liabilities. | |
Other liabilities | 12. Other liabilities The table below sets forth the components of total other liabilities at the dates indicated. December 31, ($ in thousands) 2023 2022 General expenses payable 74,527 44,714 Insurance liabilities 22,465 20,488 Lease liabilities 15,853 14,174 Legacy asset recovery incentive compensation 20,816 9,643 Audit fees payable 2,163 2,324 Tax payable 4,226 2,561 Payable for capital provision assets 2,965 - Total other liabilities 143,015 93,904 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt | |
Debt | 13. Debt The table below sets forth certain information with respect to the Group’s debt securities outstanding at the dates indicated. Debt securities denominated in pound sterling have been converted to US dollar using GBP/USD exchange rates of $1.2747 and $1.2039 at December 31, 2023 and 2022, respectively. Outstanding at Carrying value (at amortized cost) at Fair value (1) at USD equivalent December 31, December 31, face value 2023 (in local 2023 December 31, December 31, December 31, December 31, ($ in thousands) at issuance currency) (in USD) 2023 2022 2023 2022 Burford Capital PLC 6.125% Bonds due 2024 $ 144,020 £- $ - $ - $ 119,993 $ - $ 116,381 5.000% Bonds due 2026 $ 225,803 £175,000 $ 223,073 $ 222,117 $ 209,466 $ 209,048 $ 186,186 Burford Capital Finance LLC 6.125% Bonds due 2025 $ 180,000 $ 180,000 $ 180,000 $ 179,432 $ 179,080 $ 175,797 $ 164,594 Burford Capital Global Finance LLC 6.250% Senior Notes due 2028 $ 400,000 $ 400,000 $ 400,000 $ 394,672 $ 393,430 $ 384,228 $ 358,608 6.875% Senior Notes due 2030 $ 360,000 $ 360,000 $ 360,000 $ 351,631 $ 350,301 $ 352,350 $ 321,314 9.250% Senior Notes due 2031 $ 400,000 $ 400,000 $ 400,000 $ 386,878 $ - $ 424,568 $ - Total debt $ 1,563,073 $ 1,534,730 $ 1,252,270 $ 1,545,991 $ 1,147,083 1. The Group’s outstanding indebtedness is held at amortized cost in the consolidated financial statements and these values represent the fair value equivalent amounts. The Group’s debt securities are classified as Level 2 within the fair value hierarchy. The table below sets forth a summary of the changes in the outstanding indebtedness due to cash flows and non-cash changes at the beginning and end of the relevant reporting periods. Years ended December 31, ($ in thousands) 2023 2022 At beginning of period 1,269,085 1,036,475 Debt issued, net of original issue discount 394,464 357,271 Debt issuance costs (8,461) (7,912) Finance costs 99,135 77,389 Interest paid (77,210) (70,781) Foreign exchange (gain)/loss 22,103 (43,446) Debt extinguishment (129,970) (79,911) At end of period 1,569,146 1,269,085 Debt payable 1,534,730 1,252,270 Debt interest payable 34,416 16,815 Total debt and interest payable 1,569,146 1,269,085 The table below sets forth unamortized issuance costs of the outstanding debt securities at the dates indicated. December 31, ($ in thousands) 2023 2022 6.125% Bonds due 2024 - 397 6.125% Bonds due 2025 568 920 5.000% Bonds due 2026 956 1,216 6.250% Senior Notes due 2028 5,328 6,570 6.875% Senior Notes due 2030 6,223 7,212 9.250% Senior Notes due 2031 7,932 - The table below sets forth the components of total finance costs of the outstanding indebtedness for the periods indicated. Years ended December 31, (S in thousands) 2023 2022 2021 Debt interest expense 94,605 74,116 56,454 Debt issuance costs incurred as finance costs 4,530 3,273 2,193 Total finance costs 99,135 77,389 58,647 Description of debt securities All of the Group’s outstanding debt securities have a fixed interest rate payable semi-annually in arrears and are unsecured, unsubordinated obligations of the respective issuer that are fully and unconditionally guaranteed by the Company and certain of its wholly owned indirect subsidiaries. At December 31, 2023, the Group was in compliance with the covenants set forth in the respective agreements governing its debt securities. The Company is required to provide certain information pursuant to the indentures governing the 2028 Notes, the 2030 Notes and the 2031 Notes. The tables below set forth the total assets and third-party indebtedness at the dates indicated and total revenues for the periods indicated, in each case, of (i) the Company and its Restricted Subsidiaries (as defined in the indentures governing the 2028 Notes, the 2030 Notes and the 2031 Notes, as applicable) and (ii) the Company’s Unrestricted Subsidiaries (as defined in the indentures governing the 2028 Notes, the 2030 Notes and the 2031 Notes, as applicable). December 31, ($ in thousands) 2023 2022 (1) Company and its Restricted Subsidiaries Total assets 4,922,451 3,643,013 Third-party indebtedness 1,534,730 1,252,270 Unrestricted Subsidiaries Total assets 914,943 645,346 Third-party indebtedness - - 1. T he comparative data at December 31, 2022 in the table above has been amended to correct for immaterial differences. Years ended December 31, (S in thousands) 2023 2022 2021 Company and its Restricted Subsidiaries Total revenues 973,461 245,383 173,405 Unrestricted Subsidiaries Total revenues 113,441 73,844 43,925 Issuance of 2030 Notes On April 11, 2022, Burford Capital Global Finance LLC issued $360 million aggregate principal amount of the 2030 Notes. The 2030 Notes have an interest rate of 6.875% payable semi-annually in arrears on April 15 and October 15 of each year. The 2030 Notes were issued under an indenture by and among Burford Capital Global Finance LLC, as issuer, Burford Capital Limited, as parent guarantor, the other guarantors party thereto from time to time and U.S. Bank Trust Company, National Association, as trustee. The 2030 Notes and the indenture governing the 2030 Notes are governed by the laws of the State of New York. Redemption of 2022 Bonds On May 25, 2022, Burford Capital PLC redeemed in full the remaining aggregate outstanding principal amount of the 6.500% bonds due 2022 (the “ 2022 Bonds Issuance of Initial 2031 Notes On June 26, 2023, Burford Capital Global Finance LLC issued $400 million aggregate principal amount of the Initial 2031 Notes. The Initial 2031 Notes bear interest at a rate of 9.250% per annum, payable semi-annually in arrears on July 1 and January 1 of each year. The Initial 2031 Notes were issued under an indenture by and among Burford Capital Global Finance LLC, as issuer, Burford Capital Limited, as parent guarantor, the other guarantors party thereto from time to time and U.S. Bank Trust Company, National Association, as trustee. The Initial 2031 Notes and the indenture governing the 2031 Notes are governed by the laws of the State of New York. Redemption of 2024 Bonds On July 12, 2023, Burford Capital PLC redeemed in full the aggregate outstanding principal amount of the 2024 Bonds at a redemption price of 100.000% per £100 principal amount of the 2024 Bonds, plus accrued but unpaid interest on the 2024 Bonds up to (but excluding) the redemption date. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill | |
Goodwill | 14. Goodwill Goodwill arises as a result of the acquisition of subsidiaries and represents the excess of the purchase consideration over the fair value of the Group’s share of the assets acquired and the liabilities assumed on the acquisition date. The Group’s goodwill primarily relates to the acquisition of BCIM Holdings LLC in December 2016. The tables below set forth the allocation of the carrying value of goodwill to each of the Group’s reportable segments at the beginning and end of the relevant reporting periods. Asset management Capital and other Other ($ in thousands) provision services corporate Total December 31, 2021 107,991 25,020 1,008 134,019 Foreign exchange gain/(loss) - - (107) (107) December 31, 2022 107,991 25,020 901 133,912 Foreign exchange gain/(loss) - - 53 53 December 31, 2023 107,991 25,020 954 133,965 Management has determined there was no evidence of goodwill impairment at December 31, 2023 and 2022. |
Fair value of assets and liabil
Fair value of assets and liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Fair value of assets and liabilities | |
Fair value of assets and liabilities | 15. Fair value of assets and liabilities The tables below set forth the fair value of financial instruments grouped by the fair value level at the dates indicated. December 31, 2023 ($ in thousands) Level 1 Level 2 Level 3 Total Assets: Capital provision assets Single case - - 934,131 934,131 Portfolio - - 2,875,881 2,875,881 Portfolio with equity risk - - 142,659 142,659 Legal risk management - - 3,523 3,523 Joint ventures and equity method investments - - 178,628 178,628 Single case with equity risk 10,051 - - 10,051 Assets of consolidated investment companies Core legal finance (BOF-C) 9,914 - 705,092 715,006 Lower risk legal finance (Advantage Fund) - - 185,509 185,509 Due from settlement of capital provision assets - - 265,540 265,540 Marketable securities Government securities 8,004 14,333 - 22,337 Corporate bonds - 53,001 - 53,001 Asset-backed securities - 20,047 - 20,047 Mutual funds 6,529 - - 6,529 Certificates of deposit 5,647 - - 5,647 Total assets 40,145 87,381 5,290,963 5,418,489 Liabilities: Financial liabilities relating to third-party interests in capital provision assets - - 704,196 704,196 Total liabilities - - 704,196 704,196 Net total 40,145 87,381 4,586,767 4,714,293 December 31, 2022 ($ in thousands) Level 1 Level 2 Level 3 Total Assets: Capital provision assets Single case - - 792,745 792,745 Portfolio - - 2,022,406 2,022,406 Portfolio with equity risk - - 99,406 99,406 Legal risk management - - 3,201 3,201 Joint ventures and equity method investments - - 159,225 159,225 Single case with equity risk 8,745 - - 8,745 Assets of consolidated investment companies Complex strategies (Strategic Value Fund) - - 12,657 12,657 Core legal finance (BOF-C) 10,000 - 526,575 536,575 Lower risk legal finance (Advantage Fund) - - 100,596 100,596 Due from settlement of capital provision assets - - 116,582 116,582 Marketable securities Government securities 14,806 2,687 - 17,493 Corporate bonds - 79,899 - 79,899 Asset-backed securities - 32,933 - 32,933 Mutual funds 6,033 - - 6,033 Total assets 39,584 115,519 3,833,393 3,988,496 Liabilities: Financial liabilities relating to third-party interests in capital provision assets - - 425,205 425,205 Total liabilities - - 425,205 425,205 Net total 39,584 115,519 3,408,188 3,563,291 The Group has elected the fair value option for the Group’s equity method investments, marketable securities, due from settlement of capital provision assets and financial liabilities relating to third-party interests in capital provision assets to provide a consistent fair value measurement approach for all capital provision related activity. Realized gains and losses, unrealized gains and losses and interest and dividend income on these assets are recognized as income/(loss) and presented in the consolidated statements of operations when they are earned. The key risk and sensitivity across all the capital provision assets relate to the underlying litigation associated with each case that is underwritten and financed. The sensitivity to this Level 3 input is therefore considered to be similar across the different types of capital provision assets and is expressed as a portfolio-wide stress. Movements in Level 3 fair value assets and liabilities The tables below set forth the analysis of the movements in the Level 3 financial assets and liabilities for the periods indicated. Year ended December 31, 2023 Transfers Income/(loss) Foreign At At beginning Transfers between for the exchange end of ($ in thousands) of period into Level 3 types Deployments Realizations period gains/(losses) period Single case 792,745 - (403) 111,958 (184,998) 215,707 (878) 934,131 Portfolio 2,022,406 - 403 261,853 (301,610) 893,113 (284) 2,875,881 Portfolio with equity risk 99,406 - - 361 - 42,892 - 142,659 Legal risk management 3,201 - - - (944) 115 1,151 3,523 Joint ventures and equity method investments 159,225 - - 5,556 (10,440) 22,007 2,280 178,628 Complex strategies (Strategic Value Fund) 12,657 - - - (15,000) 2,343 - - Core legal finance (BOF-C) 526,575 - - 126,164 (66,499) 118,852 - 705,092 Lower risk legal finance (Advantage Fund) 100,596 - - 176,135 (128,802) 37,580 - 185,509 Total capital provision assets 3,716,811 - - 682,027 (708,293) 1,332,609 2,269 5,025,423 Due from settlement of capital provision assets 116,582 - - 708,293 (559,362) (1) 28 265,540 Total Level 3 assets 3,833,393 - - 1,390,320 (1,267,655) 1,332,608 2,297 5,290,963 Financial liabilities relating to third-party interests in capital provision assets 425,205 - - 230 (502) 279,263 - 704,196 Total Level 3 liabilities 425,205 - - 230 (502) 279,263 - 704,196 Year ended December 31, 2022 (1) Transfers Income/(loss) Foreign At At beginning Transfers between for the exchange end of ($ in thousands) of period into Level 3 types Deployments Realizations period gains/(losses) period Single case 655,674 - (1,916) 161,785 (45,371) 28,243 (5,670) 792,745 Portfolio 1,752,137 - 1,916 272,796 (138,277) 135,962 (2,128) 2,022,406 Portfolio with equity risk 200,484 - - 366 (157,191) 55,747 - 99,406 Legal risk management 2,567 - - 130 - 718 (214) 3,201 Joint ventures and equity method investments 162,103 - - 7,864 (5,916) (1,627) (3,199) 159,225 Complex strategies (Strategic Value Fund) 12,855 - - - (1,663) 1,465 - 12,657 Core legal finance (BOF-C) 329,360 - - 132,006 (53,358) 118,563 4 526,575 Lower risk legal finance (Advantage Fund) - - - 121,896 (22,875) 1,575 - 100,596 Other 2,083 - - - (2,083) - - - Total capital provision assets 3,117,263 - - 696,843 (426,734) 340,646 (11,207) 3,716,811 Due from settlement of capital provision assets 86,311 - - 426,734 (387,786) (8,679) 2 116,582 Total Level 3 assets 3,203,574 - - 1,123,577 (814,520) 331,967 (11,205) 3,833,393 Financial liabilities relating to third-party interests in capital provision assets 424,733 - - 29 (52) 495 - 425,205 Total Level 3 liabilities 424,733 - - 29 (52) 495 - 425,205 1. The comparative data for December 31, 2022 in the table above has been amended to correct for immaterial differences. All transfers into and out of Level 3 are recognized as if they have taken place at the beginning of each reporting period. There were no transfers into or out of Level 3 during the years ended December 31, 2023 and 2022. Key unobservable inputs for Level 3 valuations The Group’s valuation policy for capital provision assets provides for ranges of percentages to be applied against the risk-adjustment factor to more than 70 discrete objective litigation events across five principal different types of litigation in order to calculate the adjusted risk premium. The range for each event is ten percentage points. The Company typically marks assets at the middle of that range unless there are specific factors that cause the Group’s valuation committee to select a different point in the range and, on an exceptional basis, the Group’s valuation committee may also select a point outside the range. To decide which percentage to apply to a given asset, the Group’s valuation committee considers the kind and degree of legal, procedural or other investment-specific circumstances that may be present. See note 2 ( Summary of significant accounting policies—Fair value of financial instruments The tables below set forth each of the key unobservable inputs used to value the Group’s capital provision assets and the applicable ranges and weighted average by relative fair value for such inputs. ($ in thousands) December 31, 2023 Type: Single case, Portfolio, Joint ventures and equity method investments, Legal risk management, Core legal finance (BOF-C) (1) , Financial liabilities relating to third party interests in capital provision assets Principal value technique: Discounted cash flow Unobservable input: Cost Unrealized Fair value Minimum Maximum Weighted average Discount rate 5.3% 7.3% 7.0% Duration (2) (years) 0.5 7.2 3.4 Adjusted risk premium 0.0% 100.0% 30.2% Positive case milestone factor: Significant ruling or other objective event prior to trial court judgment $ 81,244 $ 50,667 $ 131,911 5% 40% 23% Trial court judgment or tribunal award $ 130,529 $ 61,175 $ 191,704 25% 60% 54% Appeal judgment $ 60,402 $ 57,472 $ 117,874 71% 80% 72% Asset freeze $ 16,621 $ 10,528 $ 27,149 20% 20% 20% Exhaustion of as-of-right appeals $ 34,318 $ 61,828 $ 96,146 80% 80% 80% Exhaustion of all appeals $ 76,872 $ 66,039 $ 142,911 100% 100% 100% Settlement $ 5,877 $ 17,380 $ 23,257 40% 80% 49% Portfolios with multiple factors $ 498,296 $ 405,078 $ 903,374 1% 100% 22% Other $ 338 ($ 171) $ 167 100% 100% 100% Negative case milestone factor: Significant ruling or other objective event prior to trial court judgment $ 34,305 ($ 28,057) $ 6,248 (10)% (60)% (43)% Trial court judgment or tribunal award $ 41,950 ($ 23,577) $ 18,373 (10)% (60)% (59)% Appeal judgment $ 7,989 ($ 7,989) $ - (100)% (100)% (100)% Portfolios with multiple factors $ 29,636 ($ 13,479) $ 16,157 (13)% (60)% (43)% No case milestone: $ 865,568 $ 55,868 $ 921,436 YPF-related assets: $ 60,338 $ 1,311,319 $ 1,371,657 $ 1,944,283 $ 2,024,081 $ 3,968,364 Type: Lower risk legal finance (Advantage Fund) Principal value technique: Discounted cash flow Unobservable input: Cost Unrealized Fair value Minimum Maximum Weighted average Discount rate $ 164,259 $ 21,250 $ 185,509 12.4% 21.4% 17.5% Duration (2) (years) 1.0 2.7 1.9 Type: Portfolio with equity risk, Core legal finance (BOF-C) (1) Principal value technique: Discounted cash flow Unobservable input: Cost Unrealized Fair value Minimum Maximum Weighted average Discount rate $ 123,069 $ 44,285 $ 167,354 15.0% 15.0% 15.0% Resolution timing (years) 0.8 4.8 1.7 Conversion ratio 2.6 2.6 2.6 Type: Due from settlement of capital provision assets Principal value technique: Discounted cash flow Unobservable input: Cost Unrealized Fair value Minimum Maximum Weighted average Collection risk $ 265,540 $ - $ 265,540 0% 100% 0% Level 3 assets and liabilities, net $ 2,497,151 $ 2,089,616 $ 4,586,767 1. Includes the proportional investment in these capital provision assets held by BOF-C. 2. Duration refers to the expected timing of a favorable outcome. See note 2 ( Summary of significant accounting policies—Fair value of financial instruments ) to the Group’s condensed consolidated financial statements for additional information with respect to the valuation methodology for Level 3 assets. ($ in thousands) December 31, 2022 (1) Type: Single case, Portfolio, Joint ventures and equity method investments, Legal risk management, Core legal finance (BOF-C) (2) , Financial liabilities relating to third party interests in capital provision assets Principal value technique: Discounted cash flow Unobservable input: Cost Unrealized Fair value Minimum Maximum Weighted average Discount rate 5.8% 7.9% 7.3% Duration (3) (years) 0.2 8.2 3.4 Adjusted risk premium 0.0% 94.2% 38.1% Positive case milestone factor: Significant ruling or other objective event prior to trial court judgment $ 58,724 $ 71,469 $ 130,193 5% 40% 20% Trial court judgment or tribunal award $ 116,692 $ 97,642 $ 214,334 4% 60% 53% Appeal judgment $ 90,045 $ 88,018 $ 178,063 60% 80% 67% Asset freeze $ 16,621 $ 8,598 $ 25,219 20% 20% 20% Settlement $ 52,812 $ 44,384 $ 97,196 40% 80% 76% Portfolios with multiple factors $ 380,101 $ 240,929 $ 621,030 1% 100% 14% Other $ 337 ($ 182) $ 155 100% 100% 100% Negative case milestone factor: Significant ruling or other objective event prior to trial court judgment $ 20,259 ($ 14,873) $ 5,386 (10)% (60)% (13)% Trial court judgment or tribunal award $ 13,201 ($ 3,962) $ 9,239 (55)% (60)% (56)% Appeal judgment $ 14,431 ($ 13,860) $ 571 (80)% (80)% (80)% Portfolios with multiple factors $ 2,450 ($ 999) $ 1,451 (50)% (50)% (50)% No case milestone: $ 941,340 $ 14,382 $ 955,722 YPF-related assets: $ 54,625 $ 768,410 $ 823,035 $ 1,761,638 $ 1,299,956 $ 3,061,594 Type: Lower risk legal finance (Advantage Fund) Principal value technique: Discounted cash flow Unobservable input: Cost Unrealized Fair value Minimum Maximum Weighted average Discount rate $ 100,331 $ 265 $ 100,596 12.5% 21.5% 16.7% Duration (3) (years) 0.7 3.7 2.5 Type: Portfolio with equity risk, Core legal finance (BOF-C) (2) Principal value technique: Discounted cash flow Unobservable input: Cost Unrealized Fair value Minimum Maximum Weighted average Discount rate $ 123,069 ($ 6,310) $ 116,759 16.5% 16.5% 16.5% Resolution timing (years) 1.8 3.8 2.8 Conversion ratio 2.6 2.6 2.6 Type: Due from settlement of capital provision assets Principal value technique: Discounted cash flow Unobservable input: Cost Unrealized Fair value Minimum Maximum Weighted average Collection risk $ 127,912 ($ 11,330) $ 116,582 0% 100% 0% Type: Complex strategies (Strategic Value Fund) Principal value technique: Other Unobservable input: Cost Unrealized Fair value Other $ 11,156 $ 1,501 $ 12,657 Level 3 assets and liabilities, net $ 2,124,106 $ 1,284,082 $ 3,408,188 1. The comparative data for December 31, 2022 in the table above has been amended to correct for immaterial differences. 2. Includes the proportional investment in these capital provision assets held by BOF-C. 3. Duration refers to the expected timing of a favorable outcome. See note 2 ( Summary of significant accounting policies—Fair value of financial instruments ) to the Group’s condensed consolidated financial statements for additional information with respect to the valuation methodology for Level 3 assets. Sensitivity of Level 3 valuations Following origination, the Group engages in a review of each capital provision asset’s fair value in connection with the preparation of the consolidated financial statements. Should the prices of the Level 3 due from settlement of capital provision assets, capital provision assets and financial liabilities relating to third-party interests in capital provision assets have been 10% higher or lower, while all other variables remained constant, the Group’s consolidated income and net assets would have increased or decreased, respectively million In addition, at December 31, 2023 and 2022, should interest rates have been 50 or 100 basis points lower or higher, as applicable, than the actual interest rates used in the fair value estimates, while all other variables remained constant, the Group’s consolidated income and net assets would have increased or decreased, respectively, by the following amounts. December 31, ($ in thousands) 2023 2022 (1) +100 bps interest rates (161,110) (116,874) +50 bps interest rates (81,745) (59,527) -50 bps interest rates 82,724 59,212 -100 bps interest rates 167,944 130,076 1. The comparative data for December 31, 2022 in the table above has been amended to correct for immaterial differences. Furthermore, at December 31, 2023 and 2022, should duration have been six or 12 months shorter or longer, as applicable, than the actual durations used in the fair value estimates, while all other variables remained constant, the Group’s consolidated income and net assets would have decreased or increased, respectively, by the following amounts. December 31, ($ in thousands) 2023 2022 + 12 months duration (1) (363,901) (250,428) + 6 months duration (1) (188,718) (130,086) -6 months duration (1) 203,442 133,950 -12 months duration (1) 393,248 277,833 1. Duration refers to the expected timing of a favorable outcome. See note 2 ( Summary of significant accounting policies—Fair value of financial instruments ) to the Group’s condensed consolidated financial statements for additional information with respect to the valuation methodology for Level 3 assets. The sensitivity impact has been provided on a pre-tax basis for both the Group’s consolidated income and net assets as the Group considers the fluctuation in its effective tax rate from period to period could indicate changes in sensitivity not driven by the valuation that are difficult to follow and detract from the comparability of this information. Reasonably possible alternative assumptions The determination of fair value for capital provision assets, due from settlement of capital provision assets and financial liabilities relating to third-party interests in capital provision assets involves significant judgments and estimates. While the potential range of outcomes for the assets is wide, the Group’s fair value estimation is its best assessment of the current fair value of each asset or liability, as applicable. Such estimate is inherently subjective, being based largely on an assessment of how individual events have changed the possible outcomes of the asset or liability, as applicable, and their relative probabilities and hence the extent to which the fair value has altered. The aggregate of the fair values selected falls within a wide range of reasonably possible estimates. In the Group’s opinion, there is no useful alternative valuation that would better quantify the market risk inherent in the portfolio and there are no inputs or variables to which the values of the assets are correlated other than interest rates which impact the discount rates applied. |
Variable interest entities
Variable interest entities | 12 Months Ended |
Dec. 31, 2023 | |
Variable interest entities | |
Variable interest entities | 16. Variable interest entities Consolidated VIEs Pursuant to US GAAP consolidation guidance, the Group consolidates certain VIEs for which it is considered the primary beneficiary, either directly or indirectly, through a consolidated entity or affiliate. See note 2 (Summary of significant accounting policies) to the Group’s consolidated financial statements for additional information with respect to the Group’s consolidation. Consolidated VIEs include entities relating to the Group’s private funds (e.g., BOF-C, the Advantage Fund and, prior to its liquidation in the fourth quarter of 2023, the Strategic Value Fund), investment vehicles for sale and resale of the participation interests (e.g., Colorado) and acquisition of interests in secured promissory notes (e.g., Mellor Investments LLC, formerly known as Forest Hills Investments LLC). The purpose of the private funds is to provide strategy-specific investment opportunities for investors in exchange for management-based and performance-based fees. The investment strategies of the private funds differ by product, but the fundamental risks are similar. Colorado is an exempted company established to receive a portion of the Group’s interest in the YPF-related Petersen claims and provide a vehicle for the sale and resale of the participation interests. The Group, together with BCIM Partners III, LP and COLP, acquired interest in certain secured promissory notes through Mellor Investments LLC. The secured promissory notes are legal finance investments with proceeds payable out of two underlying litigation matters. This structure provides for the sharing of the economics, interest payments and settlement cash flows among the Group, BCIM Partners III, LP and COLP. The Group provides revolving credit facilities to certain of its private funds for capital calls as required. These revolving credit facilities are entirely discretionary insofar as the Group is not obligated to fund under the revolving credit facilities. There were no amounts outstanding under the revolving credit facilities at December 31, 2023 and 2022, respectively. The table below sets forth assets and liabilities of the consolidated VIEs at the dates indicated. December 31, ($ in thousands) 2023 2022 Total assets 1,865,344 1,259,892 Total liabilities (4,716) (5,210) The table below sets forth the total revenues and certain information relating to cash flows of the consolidated VIEs for the periods indicated. Years ended December 31, ($ in thousands) 2023 2022 2021 Total revenue: 470,216 73,480 26,158 Cash flows: Proceeds 150,775 92,080 139,825 (Funding) (304,348) (291,046) (224,893) Cash balance at period end 24,613 32,966 40,547 Unconsolidated VIEs The Group’s maximum exposure to loss from the unconsolidated VIEs is the sum of capital provision assets, fee receivables, accrued income and loans to the unconsolidated VIEs. The table below sets forth the Group’s maximum exposure to loss from the unconsolidated VIEs at the dates indicated. December 31, ($ in thousands) 2023 2022 On-balance sheet exposure 22,426 16,724 Off-balance sheet exposure - undrawn commitments 2,768 3,791 Maximum exposure to loss 25,194 20,515 |
Joint ventures and equity metho
Joint ventures and equity method investments | 12 Months Ended |
Dec. 31, 2023 | |
Joint ventures and equity method investments | |
Joint ventures and equity method investments | 17. Joint ventures and equity method investments The Group holds certain of its capital provision assets through joint ventures that are accounted for at fair value through profit or loss. See note 15 ( Fair value of assets and liabilities The table below sets forth the fair value of the Group’s interest in joint ventures and equity method investments, which are included in capital provision assets in the Group’s consolidated statements of financial position. December 31, ($ in thousands) 2023 2022 Interest in joint ventures 172,958 174,337 Interest in equity method investments 468 1,359 None of these joint ventures or equity method investments is individually material to the Group, and there are no significant restrictions on the ability of the joint ventures to make cash distributions or repayment of advances to the Group. The table below sets forth the fair value of the Group’s share of commitments for the joint ventures and equity method investments, which are included in the commitment amounts relating to asset agreements, at the dates indicated. See note 21 ( Financial commitments and contingent liabilities December 31, ($ in thousands) 2023 2022 Commitments for joint ventures 139,753 146,275 Commitments for equity method investments 15,513 14,651 |
Shareholders' equity
Shareholders' equity | 12 Months Ended |
Dec. 31, 2023 | |
Shareholders' equity | |
Shareholders' equity | 18. Shareholders' equity Shareholder rights All of the Company’s issued and outstanding ordinary shares are fully paid. Holders of the Company’s ordinary shares do not have conversion or redemption rights. There are no provisions in the Company’s memorandum of incorporation or articles of incorporation discriminating against a shareholder as a result of such shareholder’s ownership of a particular number of the Company’s ordinary shares. Each holder of the Company’s ordinary shares who is present in person (including any corporation by its duly authorized representative) or by proxy at a general meeting will have one vote on a show of hands and, on a poll, if present in person or by proxy, will have one vote for every ordinary share held by such holder. Ordinary resolutions require approval by a simple majority of the votes at a general meeting at which a quorum is present. The Board may provide for classes of shares other than ordinary shares, including series of preferred shares. If any preferred shares are issued, the rights, preferences and privileges of the Company’s ordinary shares will be subject to, and may be adversely affected by, the rights of holders of the Company’s preferred shares. The rights attached to any class of shares may be varied only with the consent in writing of the holders of a majority of the issued shares of such class or with the sanction of an ordinary resolution passed by a majority of the votes cast at a separate meeting of the holders of the shares of such class. If the Company is liquidated, the liquidator may, with the authority of a special resolution, divide among the shareholders, in the form specified, the whole or any part of the Company’s assets. For such purpose, the liquidator may set the value of any assets and determine how the division will be carried out between the shareholders or different classes of shareholders. The Company’s memorandum of incorporation and articles of incorporation do not impose limitations on the rights of persons to own the Company’s securities, including rights of non-resident or foreign shareholders to hold or exercise voting rights with respect to the Company’s securities. There are no provisions in the Company’s memorandum of incorporation or articles of incorporation that would have the effect of delaying, deferring or preventing a change in control of the Company and that would operate only with respect to a merger, acquisition or corporate restructuring involving the Company or any of its subsidiaries. Dividends Dividends on the Company’s issued and outstanding ordinary shares are payable at the discretion of the Board. Each year, once the prior year’s results of operations are known, the Board reviews the Company’s revenues, net income/(loss), cash generation and cash needs and recommends a dividend level to shareholders for consideration at the Company’s annual general meeting. The Company may declare dividends by ordinary resolution at a general meeting in accordance with the respective rights of any class of shares. No dividend may exceed the amount recommended by the Board. Subject to the provisions of the Guernsey Companies Law, the Board may, if it thinks fit, from time to time pay interim dividends if it appears to the Board they are justified by the assets of the Company. Subject to rights which may attach to any other class of shares, holders of the Company’s ordinary shares are entitled to receive ratably all dividends, if any, that are declared. Dividends may be paid in any currency that the Board determines. The declaration and payment of dividends and distributions, if any, is subject to the discretion of the Board and the requirements of Guernsey law (including, among others, satisfaction of a statutory solvency test). The timing and amount of any dividends or distributions declared depends on, among others, the Company’s cash flows from operations and available liquidity, its results of operations and financial position and any applicable contractual restrictions. Any dividend that has not been claimed after a period of 12 years from the date it became due for payment will, if the Board so resolves, be forfeited. The table below sets forth dividends and their respective record dates for the periods indicated. ($ in cents) Cash dividend per ordinary share Record date 2023 year First half 6.25 November 10, 2023 Second half 6.25 May 24, 2024 Total for the year ended December 31, 2023 12.50 2022 year First half 6.25 November 4, 2022 Second half 6.25 May 26, 2023 Total for the year ended December 31, 2022 12.50 2021 year First half 6.25 November 12, 2021 Second half 6.25 May 27, 2022 Total for the year ended December 31, 2021 12.50 Burford Capital Employee Benefit Trust The Burford Capital Employee Benefit Trust was established for the purpose of holding the Company’s ordinary shares in connection with the LTIP. It was treated as being controlled by the Group for accounting purposes and, therefore, was consolidated. The Company’s ordinary shares held in the Burford Capital Employee Benefit Trust at the period end were included in issued and outstanding share capital and were deducted from shareholders’ equity. No gain or loss was recognized on the purchase, sale, cancellation or issue of such ordinary shares and any consideration paid or received was recognized directly in shareholders’ equity. At December 31, 2023, the Company no longer used the Burford Capital Employee Benefit Trust in connection with administration of the LTIP, and the Burford Capital Employee Benefit Trust was in the process of liquidation. Treasury shares During the years ended December 31, 2023 and 2022, the Company purchased into treasury a total of 261,000 ordinary shares and 468,000 ordinary shares, respectively, on the open market in connection with the Company’s future obligations under its share-based compensation plans. The Company did not purchase any ordinary shares into treasury during the year ended December 31, 2021. All of the ordinary shares were purchased on the London Stock Exchange at an average price of £11.82 ($14.40) per ordinary share and £6.33 ($8.01) per ordinary share for the years ended December 31, 2023 and 2022, respectively. The result of these purchases was an increase of $3.8 million and $3.7 million in the treasury balance in the consolidated statement of changes in equity for the years ended December 31, 2023 and 2022, respectively. These ordinary shares remained in issue and reduced the outstanding number of ordinary shares at December 31, 2023 and 2022. Issuance of ordinary shares During the year ended December 31, 2023, the Company issued an aggregate of 263,511 ordinary shares to satisfy the vesting of RSU awards under the LTIP, and the Company's total issued share capital was 219,313,388 ordinary shares at December 31, 2023. The Company did not issue any ordinary shares during the years ended December 31, 2022 and 2021. Contingent share capital The acquisition of BCIM Holdings LLC in December 2016 included contingent equity consideration. 2,461,682 ordinary shares will be issued after BCIM Holdings LLC’s private funds contribute more than $100 million in performance fee income (and, in certain instances, fee income from new private funds or other capital provision income) to the Group. If the $100 million income target is not achieved, no contingent equity consideration will be payable. |
Share-based compensation
Share-based compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-based compensation | |
Share-based compensation | 19. Share-based compensation Share-based awards granted to the employees as compensation consist of RSUs with service-based and/or performance-based (which in turn may include performance-based and/or market-based) conditions and are measured based on the grant date fair value of the award. Share-based awards that do not require future service are expensed immediately. Share-based awards with service-based and performance-based conditions are expensed over the relevant service period to the extent the performance conditions are met or deemed probable. Share-based awards with service-based and market-based conditions are expensed over the relevant service period regardless of whether the market condition is met. LTIP In 2016, the Company’s shareholders approved the LTIP, which was amended and extended by shareholder approval on May 13, 2020. The LTIP creates alignment between participants in the LTIP and public shareholders and creates a long-term retention vehicle. All of the Group’s employees may be granted awards under the LTIP, and the Group typically makes an initial grant to each new employee and periodic grants thereafter. The LTIP is administered by the compensation committee of the Board (the “ Compensation Committee provided Awards under the LTIP are granted in the form of RSUs, which are treated as phantom awards for tax and legal purposes. RSUs are subject to satisfaction of service-based conditions, requiring that the participant remains employed by the Group through the date of vesting, and may also require satisfaction of performance-based conditions determined by the Compensation Committee at the time of grant and including total shareholder return over different measuring periods. RSUs granted prior to January 1, 2021 included both service-based and performance-based conditions. RSUs granted on and after January 1, 2021 have continued to have service-based conditions, while at least 50% of RSUs granted to the Company’s senior management must also have a performance-based condition. RSUs generally vest in full on the third anniversary of the grant date, and each performance-based condition (as applicable) is measured over the three individual financial years beginning with the financial year in which the relevant RSUs were granted as well as over the entire three financial years as a whole. In the event of a participant’s termination of employment for any reason prior to vesting, other than death, disability or retirement, all outstanding RSUs will be forfeited. In the event of the participant’s death, disability, retirement or, in certain circumstances, at the discretion of the Compensation Committee (e.g., good leavers), outstanding RSUs will continue to be eligible to vest at the end of the service period and, if applicable, the performance period and may be prorated (other than in the case of retirement) based on the number of full months the participant was employed during the service and, if applicable, performance period. In special circumstances, the Compensation Committee has the discretion to accelerate vesting of awards or alter proration or performance targets for outstanding awards. Certain awards granted under the LTIP are subject to clawback provisions in accordance with applicable law and pursuant to, and in accordance with, the Company’s clawback policy for incentive-based executive compensation (the “ Clawback Policy following circumstances: (i) a material financial misstatement or miscalculation of the Group’s audited financial statements; (ii) the assessment of any performance-based condition on vesting which was based on error, misleading information or inaccurate assumptions; or (iii) the gross misconduct of a participant. During the period since the LTIP’s inception through December 31, 2023, the Group has issued RSUs in respect of approximately 3.7% of the Company’s issued and outstanding ordinary share capital and, at December 31, 2023, there was a total of approximately 8.2 million RSUs issued under the LTIP since its inception. RSUs may be satisfied with newly issued ordinary shares, a transfer of treasury shares or ordinary shares purchased on the open market. In connection with the vesting of RSUs during the year ended December 31, 2023, we purchased 261,000 ordinary shares on the open market. At December 31, 2023, approximately 14.4 million ordinary shares remained available for future grants under the LTIP through 2030. The table below sets forth the grant, vesting and forfeiture of RSUs for the year ended December 31, 2023 and the number of unvested RSUs at the beginning and end of the relevant period. Number of Weighted average ordinary grant date fair value (Ordinary shares in thousands) shares per ordinary share Unvested RSUs at December 31, 2022 4,707 $ 7.15 Granted (1) 1,727 6.89 Vested (2) (1,654) 4.15 Forfeited (108) 8.43 Unvested RSUs at December 31, 2023 4,672 $ 8.09 1. The aggregate grant date fair value of RSUs granted during the years ended December 31, 2023, 2022 and 2021 was $11.9 million, $12.2 million and $16.6 million, respectively. The associated weighted average grant date fair value per ordinary share for RSUs granted during the years ended December 31, 2023, 2022 and 2021 was $6.89 , $8.90 and $8.74 , respectively. 2. The aggregate fair value of RSUs that vested during the years ended December 31, 2023, 2022 and 2021 was $6.9 million, $9.9 million and $2.5 million, respectively. The Group used the Monte-Carlo model to estimate the fair value of RSUs granted during the years ended December 31, 2023, 2022 and 2021. If applicable, the Group would adjust the grant date fair value of RSUs for material nonpublic information existing at the grant date that could affect the fair value of RSUs, consistent with ASC 718 and the SEC staff guidance in SAB 120. The weighted average remaining contractual term of the unvested RSUs was 1.3 years at each of December 31, 2023 and 2022. The compensation cost related to the unvested RSUs not yet recognized was $15.4 million, $16.5 million and $18.8 million at December 31, 2023, 2022 and 2021, respectively. The table below sets forth the key assumptions used for valuing RSUs granted during the periods indicated. 2023 2022 2021 Dividend yield 0.72% 0.72% 0.48% Expected volatility 46.70% 52.90% 54.70% Risk-free interest rate 3.67% 2.65% 0.34% Expected term (years) 3.00 3.00 3.00 Weighted average fair value per ordinary share ($) 6.89 8.90 8.74 Weighted average price per ordinary share ($) 7.19 9.37 9.10 The expected volatility reflects the assumption that the historical volatility over a period similar to the life of RSUs is indicative of future trends, which may not necessarily be the actual outcome. Deferred Compensation Plan In 2021, the Group established the Deferred Compensation Plan, under which a specified group of employees can elect to defer a portion of their compensation until future years. Participants may elect to defer base salary, bonuses, payments under the “phantom carry pools” program and RSUs granted under the LTIP. The deferral period is a minimum of three years (five years following grant in the case of RSUs granted under the LTIP), and deferral distributions may be elected to be received in a lump sum or in annual installments. During the deferral period, the participant elects for their deferral account to be notionally invested in various mutual funds or the Company’s ordinary shares. In addition, the Company may in its sole discretion make a matching contribution to the participant’s deferral account to the extent cash deferrals are notionally invested in the Company’s ordinary shares. The Company’s matching contribution is accounted for as share-based compensation and vests after a two-year service period. Distributions from the Deferred Compensation Plan will be made in accordance with the timing and form selected by the individual participant when the deferral is first elected. The Deferred Compensation Plan is administered and maintained by an independent third party. For the years ended December 31, 2023 and 2022, the Group granted 77,281 unvested ordinary shares at a weighted average grant date fair value of $13.14 per ordinary share and 146,455 unvested ordinary shares at a weighted average grant date fair value of $9.31 per ordinary share, respectively. The weighted average remaining contractual term of unvested ordinary shares under the Deferred Compensation Plan was 0.8 years and 1.3 years at December 31, 2023 and 2022, respectively. The compensation cost related to unvested ordinary shares under the Deferred Compensation Plan not yet recognized was $1.0 million and $0.9 million at December 31, 2023 and 2022, respectively. From time to time, we may purchase mutual fund investments or the Company’s ordinary shares to minimize our exposure resulting from the elections of the participants in the Deferred Compensation Plan. The outstanding deferred compensation liability to participants was $19.4 million and $9.1 million at December 31, 2023 and 2022, respectively. The outstanding deferred compensation liability includes amounts notionally invested in the Company’s ordinary shares from both employee deferrals and matching contributions by the Company. |
Earnings per ordinary share
Earnings per ordinary share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings per ordinary share | |
Earnings per ordinary share | 20. Earnings per ordinary share Basic earnings per ordinary share is computed by dividing net income/(loss) attributable to Burford Capital Limited shareholders by the weighted average number of ordinary shares issued and outstanding during the period. Diluted earnings per ordinary share reflects the assumed conversion of all dilutive securities, including, when applicable, RSUs. There were 17,631, 88,330 and 1,959,222 potential ordinary shares related to the Company’s share-based awards excluded from diluted weighted average ordinary shares for each of the years ended December 31, 2023, 2022 and 2021, respectively, as their inclusion would have had an anti-dilutive effect. The table below sets forth the computation for basic and diluted net income/(loss) attributable to Burford Capital Limited per ordinary share for the periods indicated. Years ended December 31, ($ in thousands, except share data) 2023 2022 2021 Net income/(loss) attributable to Burford Capital Limited shareholders 610,522 30,506 (28,751) Net income/(loss) attributable to Burford Capital Limited shareholders per ordinary share: Basic 2.79 0.14 (0.13) Diluted 2.74 0.14 (0.13) Weighted average ordinary shares outstanding: Basic 218,865,816 218,757,232 219,049,877 Dilutive effect of share-based awards 4,149,074 3,045,254 - Diluted 223,014,890 221,802,486 219,049,877 |
Financial commitments and conti
Financial commitments and contingent liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Financial commitments and contingent liabilities | |
Financial commitments and contingent liabilities | 21. Financial commitments and contingent liabilities The table below sets forth the maturity profile of the Group’s financial liabilities based on contractual undiscounted payments at the date indicated. December 31, 2023 ($ in thousands) Leases Debt payable Debt interest payable Other liabilities Long-term incentive compensation payable Financial liabilities relating to third-party interests in capital provision assets 2024 2,482 - 109,340 67,956 - - 2025 2,732 180,000 108,929 4,781 - - 2026 2,748 223,073 97,904 4,146 - - 2027 2,755 - 86,750 1,449 - - 2028 2,763 400,000 74,250 1,344 - - Thereafter 6,951 760,000 148,125 1,977 - - No contractual maturity date - - - 23,044 162,318 704,196 Total undiscounted cash flows 20,431 1,563,073 625,298 104,697 162,318 704,196 Lease present value adjustment (4,578) Lease liabilities 15,853 Commitments to financing arrangements As a normal part of its business, the Group routinely enters into financing agreements that may require the Group to provide continuing financing over time, whereas other financing agreements provide for immediate financing of the total commitment. The terms of the former type of financing agreements vary widely—e.g., in cases of discretionary commitments, the Group is not contractually obligated to advance capital and generally would not suffer adverse financial consequences from not doing so and, therefore, has broad discretion as to each incremental financing of a continuing capital provision asset, while in cases of definitive commitments, the Group is contractually obligated to advance incremental capital and failure to do so would typically result in adverse contractual consequences (such as a dilution in the Group’s returns or the loss of the Group’s deployed capital in a case). The Group’s commitments are capped at a fixed amount in its financing agreements. In addition, at December 31, 2023 and 2022, the Group had exposure to assets where the Group provided some form of legal risk arrangement pursuant to which the Group does not generally expect to deploy the full committed capital unless there is a failure of the claim, such as providing an indemnity for adverse legal costs. The table below sets forth the components of undrawn commitments at the dates indicated (assuming the GBP/USD exchange rate of 1.2747 and 1.2039 at December 31, 2023 and 2022, respectively). December 31, ($ in thousands) 2023 2022 Definitive 768,311 767,786 Discretionary 977,733 822,348 Total legal finance undrawn commitments 1,746,044 1,590,134 Legal risk (definitive) 55,583 81,193 Total capital provision-direct undrawn commitments 1,801,627 1,671,327 Capital provision-indirect undrawn commitments 71,662 49,400 Total capital provision undrawn commitments 1,873,289 1,720,727 Leases Leases consist primarily of the Group’s leased office space in (i) New York, New York, United States, (ii) Chicago, Illinois, United States, (iii) Washington, DC, United States, (iv) London, United Kingdom, (v) Dubai, United Arab Emirates, (vi) Singapore, Singapore, (vii) Hong Kong, China and (viii) Sydney, Australia, which the Group has determined to be operating leases under US GAAP. The table below sets forth the components of lease costs for the periods indicated. Years ended December 31, ($ in thousands) 2023 2022 2021 Operating lease cost 2,729 2,280 2,273 Cash paid for amounts included in the measurement of operating lease liabilities 2,175 2,384 2,456 The table below sets forth right-of-use assets, lease liabilities, weighted average remaining lease term and weighted average discount rate for the operating leases at the dates indicated. December 31, 2023 2022 Right-of-use assets 13,851 12,716 Operating lease liabilities 15,853 14,174 Weighted average remaining lease term (years) 7.8 8.0 Weighted average discount rate 6.7% 6.7% Litigation Given the nature of the Group’s business, the Group may from time to time receive claims against it or be subject to inbound litigation. Having considered the legal merits of any relevant claims or progressed litigation and having received relevant legal advice (including any legal advice from external advisers), the Group considers there to be no material contingent liability in respect of any such litigation requiring disclosure in the consolidated financial statements. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related party transactions | |
Related party transactions | 22. Related party transactions The Group has interests in joint ventures and equity method investments. See note 17 (Joint ventures and equity method investments) to the Group’s consolidated financial statements for additional information with respect to the balances held with joint ventures and equity method investments. The table below sets forth the fundings and proceeds from joint ventures and equity method investments for the periods indicated. For the years ended ($ in thousands) 2023 2022 2021 Fundings of joint ventures and equity method investments 9,285 7,864 19,327 Proceeds from joint ventures and equity method investments 16,141 5,917 1,799 |
Credit risk from financial inst
Credit risk from financial instruments | 12 Months Ended |
Dec. 31, 2023 | |
Credit risk from financial instruments | |
Credit risk from financial instruments | 23. Credit risk from financial instruments The Group is exposed to credit risk in various asset structures that are set forth in note 2 ( Summary of significant accounting policies The maximum credit risk exposure represented by cash, cash equivalents, marketable securities, due from settlement of capital provision assets and capital provision assets is specified in the consolidated statements of financial position. In addition, the Group is exposed to credit risk on financial assets and receivables in other assets, all of which are held at amortized cost. The maximum credit exposure for such amounts was the carrying value of $17.8 million and $17.7 million at December 31, 2023 and 2022, respectively. The Group reviews the lifetime expected credit loss based on historical collection performance, the specific provisions of any settlement agreement and a forward-looking assessment of macroeconomic factors. Based on this review, the Group has not identified any material expected credit loss relating to the financial assets held at amortized cost. The Group recognized no impairment for the years ended December 31, 2023 and 2022 and $0.5 million of impairments for the year ended December 31, 2021. The Group is not exposed to concentration of credit risk from a particular region or customer. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent events | |
Subsequent events | 24. Subsequent events On January 30, 2024, Burford Capital Global Finance LLC issued $275 million aggregate principal amount of the Additional 2031 Notes at an offering price equal to 103.625% of the principal amount thereof, plus accrued interest from January 1, 2024. The Additional 2031 Notes were issued as “Additional Notes” under the indenture governing the Initial 2031 Notes, have identical terms to the Initial 2031 Notes (other than with respect to the date of issuance, the issue price and the first interest payment date) and are treated as a single class for all purposes under the indenture governing the Initial 2031 Notes. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of significant accounting policies | |
Basis of presentation | Basis of presentation The Group’s audited consolidated financial statements at and for the year ended December 31, 2023 and comparative periods have been prepared in accordance with US GAAP. |
Use of estimates | Use of estimates The preparation of the Group’s consolidated financial statements requires management to make estimates that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities, in each case, at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Such estimates include, among others, the valuation of capital provision assets (which requires the use of Level 3 valuation inputs) and other financial instruments, the measurement of deferred tax balances (including valuation allowances) and the accounting for goodwill. Actual results could differ from those estimates, and such differences could be material. |
Consolidation | Consolidation The consolidated financial statements include the accounts of (i) the Company, (ii) its wholly owned or majority owned subsidiaries, (iii) the consolidated entities that are considered to be variable interest entities (“ VIEs In connection with private funds and other related entities where the Group does not own 100% of the relevant entity, the Group makes judgments about whether it is required to consolidate such entities by applying the factors set forth in US GAAP for VIEs or voting interest entities under Accounting Standards Codification (“ ASC Consolidation VIEs are entities that, by design, either (i) lack sufficient equity to permit the entity to finance its activities without additional subordinated financial support from other parties, (ii) have equity investors that (A) do not have the ability to make significant decisions relating to the entity’s operations through voting rights, (B) do not have the obligation to absorb the expected losses or (C) do not have the right to receive the residual returns of the entity or (iii) have equity investors’ voting rights that are not proportional to the economics, and substantially all of the activities of the entity either involve or are conducted on behalf of an investor that has disproportionately few voting rights. An entity is deemed to be the primary beneficiary of the VIE if such entity has both (i) the power to direct the activities that most significantly impact the VIE’s economic performance and (ii) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE. In determining whether the Group is the primary beneficiary of a VIE, the Group considers both qualitative and quantitative factors regarding the nature, size and form of its involvement with the VIE, such as its role establishing the VIE and its ongoing rights and responsibilities, the design of the VIE, its economic interests, servicing fees and servicing responsibilities and certain other factors. The Group performs ongoing reassessments to evaluate whether changes in the entity’s capital structure or changes in the nature of the Group’s involvement with the entity result in a change to the VIE designation or a change to the Group’s consolidation conclusion. The most significant judgments relate to the assessment of the Group’s exposure or rights to variable returns in Burford Opportunity Fund C LP (“ BOF-C Advantage Fund Colorado Strategic Value Fund and its investment as a limited partner in the Strategic Value Fund and the Advantage Fund, coupled with its power over the relevant activities as the fund manager, require the consolidation of BOF-C, the Strategic Value Fund and the Advantage Fund in the consolidated financial statements. Similarly, the Group has assessed that its shareholding in Colorado, coupled with its power over the relevant activities of Colorado through contractual agreements, require the consolidation of Colorado in the consolidated financial statements. The Group is deemed to have a controlling financial interest in VIEs in which it is the primary beneficiary and in other entities in which it owns more than 50% of the outstanding voting shares and other shareholders do not have substantive rights to participate in management. The assets of these consolidated VIEs are not available to the Company, and the creditors of these consolidated VIEs do not have recourse to the Company. For entities the Group controls but does not wholly own, the Group generally records a non-controlling interest within shareholders’ equity for the portion of the entity’s equity attributed to the non-controlling ownership interests. Accordingly, third-party share of net income or loss relating to non-controlling interests in consolidated entities is treated as a reduction or increase, respectively, of net income or loss in the consolidated statements of operations. With respect to Colorado, an entity the Group controls but does not wholly own, the Group records a financial liability within financial liabilities relating to third-party interests in capital provision assets for the portion of Colorado’s equity held by third parties. The third-party share of income or loss is included in third-party interests in capital provision assets in the consolidated statements of operations. All significant intercompany balances, transactions and unrealized gains and losses on such transactions are eliminated on consolidation. |
Third-party interests in capital provision assets | Third-party interests in capital provision assets Third-party interests in capital provision assets include the financial liability relating to third-party interests in Colorado as well as financial liabilities relating to third-party interests resulting from capital provision asset subparticipations recognized at fair value. Colorado holds a single financial asset and does not have any other business activity. Accordingly, Colorado does not meet the definition of a business, and the third-party interests in Colorado are accounted for as a collateralized borrowing rather than non-controlling interests in shareholders’ equity. Amounts included in the consolidated statements of financial position represent the fair value of the third-party interests in the related capital provision assets, and the amounts included in the consolidated statements of operations represent the third-party share of any gain or loss during the reporting period. Gains in the underlying capital provision asset result in increased financial liabilities to third-party interests in capital provision assets in the consolidated statement of financial position and negative adjustments in the consolidated statement of operations, presented as “(Less): Third-party interests in capital provision assets”. Conversely, losses in the underlying capital provision asset result in decreased financial liabilities to third-party interests in capital provision assets in the consolidated statement of financial position and positive adjustments in the consolidated statement of operations, presented as “Plus: Third-party interests in capital provision assets”. During the year ended December 31, 2023, the Group has renamed the line item in the consolidated statements of operations from “Gain/(loss) relating to third-party interests in capital provision assets” to “Plus/(Less): Third-party interests in capital provision assets” and has changed the order to include this line item directly beneath the line item “Capital provision income”. |
Reclassifications | Reclassifications Certain reclassifications of the amounts for prior periods have been made to conform to the presentation for the current period, such as combining the “Insurance income/(loss)” and “Services income/(loss)” line items under the “Other income/(loss)” line item within the consolidated statements of operations. These reclassifications have no effect on previously reported results of operations or total shareholders’ equity. Revisions Certain voluntary corrections of the amounts for prior periods have been made as a result of immaterial errors to previously issued consolidated financial statements. These corrections have been appropriately referenced. |
Covid-19 pandemic and global economic market conditions | Covid-19 pandemic and global economic market conditions The Covid-19 pandemic and restrictions on certain non-essential businesses have caused disruption in the United States and global economies. Although the clearing of court backlogs is underway, it continues to be gradual, uneven and characterized by meaningful dispersion across sectors and regions. The estimates and assumptions underlying the consolidated financial statements at December 31, 2023 and 2022 and for the years ended December 31, 2023, 2022 and 2021 include judgments about the financial markets and economic conditions, which may change over time. Among estimates and assumptions, certain inputs to the valuation of the Group’s capital provision assets were impacted as a result of the Covid-19 pandemic, including expected timing and amount of cash flows in the Group’s cash flow forecasts and applicable discount rates. As a result of the Russian Federation’s invasion of Ukraine in February 2022 (the “ Ukraine War ”), various nations, including the United States, have instituted economic sanctions and other responsive measures, which have resulted in an increased level of global economic and political uncertainty. At and for the years ended December 31, 2023 and 2022, the effects of the Ukraine War, including international sanctions imposed on Russian businesses and individuals, have not had a material impact on the Group’s consolidated financial statements. In addition, in October 2023, an armed conflict began in Israel, Gaza and surrounding areas, which has resulted in an increased level of global economic and political uncertainty. At and for the year ended December 31, 2023, the effects of the conflict in Israel and Gaza have not had a material impact on the Group’s consolidated financial statements. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents include funds held by depository institutions, money market funds and government securities with original maturities of three months or less when purchased. Interest income from cash and cash equivalents is recorded in marketable securities income/(loss) and bank interest in the consolidated statements of operations. The fair values of the money market funds included in cash and cash equivalents were $13.0 million and $1.0 million at December 31, 2023 and 2022, respectively, which represented their fair values due to their short-term nature and were categorized as Level 1 within the fair value hierarchy. Substantially all of the Group’s cash on deposit is in interest bearing accounts with major financial institutions that exceed insured limits. |
Statement of cash flows | Statement of cash flows The core business purpose of the Group is the provision of capital and expertise, to clients or as a principal, in connection with (i) the underlying asset value of litigation claims and the enforcement of settlements, judgments and awards, (ii) the amount paid to law firms as legal fees and expenses and (iii) the value of assets affected by litigation. These contractual arrangements are presented as capital provision assets in the consolidated statements of financial position, and the returns on those capital provision assets form the principal source of revenue earned by the Group. The cash flows associated with capital provision assets are reported within cash flows from operating activities because the ongoing management of the capital provision assets is a key operating activity for the Group. |
Marketable securities | Marketable securities Marketable securities primarily consist of government securities with original maturities longer than three months when purchased, corporate bonds, asset-backed securities and mutual funds. Marketable securities are recorded at fair value. Interest income on marketable securities is included in the overall change in fair value which is recognized in marketable securities income/(loss) and bank interest in the consolidated statements of operations. |
Bank interest | Bank interest Bank interest is recognized on an accruals basis and included in marketable securities income/(loss) and bank interest. |
Fair value of financial instruments | Fair value of financial instruments The Group’s capital provision assets meet the definition of a financial instrument under ASC 825— Financial instruments Derivatives and hedging The Group has elected the fair value option for the Group’s equity method investments, marketable securities, due from settlement of capital provision assets and financial liabilities relating to third-party interests in capital provision assets to provide a consistent fair value measurement approach for all capital provision related activity. Such election is irrevocable and is applied to financial instruments on an individual basis at initial recognition. Financial instruments are recorded at fair value. The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. Fair value hierarchy US GAAP establishes a hierarchical disclosure framework that prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination of fair values as follows: ▪ Level 1 —quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date ▪ Level 2 —inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly ▪ Level 3 —unobservable inputs for the asset or liability All transfers into and out of these levels are recognized as if they have taken place at the beginning of each reporting period. Valuation processes The Group’s senior professionals are responsible for developing the policies and procedures for fair value measurement of assets and liabilities. Following origination and at each reporting date, the movements in the values of assets and liabilities are required to be reassessed in accordance with the Group’s accounting policies. For this analysis, the reasonableness of material estimates and assumptions underlying the valuation is discussed and the major inputs applied are verified by comparing the information in the valuation computation to contracts, asset status and progress information and other relevant documents . Valuation methodology for Level 1 assets and liabilities Level 1 assets and liabilities are comprised of listed instruments, including equities, fixed income securities and investment funds. All Level 1 assets and liabilities are valued at the quoted market price at the reporting date. Valuation methodology for Level 2 assets and liabilities Level 2 assets and liabilities are comprised of debt and equity securities that are not actively traded and are valued at the last quoted or traded price at the reporting date, provided there is evidence that the price is not assessed as significantly stale so as to warrant a Level 3 classification. Valuation methodology for Level 3 assets and liabilities Fair value represents the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The methods and procedures to determine fair value of assets and liabilities may include, among others, (i) The material estimates and assumptions used in the analyses of fair value include the status and risk profile of the underlying asset or liability and, as applicable, the timing and expected amount of cash flows based on the structure and agreement of the asset or liability, the appropriateness of any discount rates used and the timing of, and estimated minimum proceeds from, a favorable outcome. Discount rates and a discounted cash flow basis for estimating fair value are applied to assets and liabilities measured at fair value, as applicable, most notably the Group’s capital provision assets. Significant judgment and estimation go into the assumptions that underlie the analyses, and the actual values realized with respect to assets or liabilities, as applicable, could be materially different from values obtained based on the use of those estimates. Capital provision assets are fair valued using an income approach. The income approach estimates fair value based on estimated, risk-adjusted future cash flows, using a discount rate to reflect the funding risk of deploying capital for financing capital provision assets. The income approach requires management to make a series of assumptions, such as discount rate, the timing and amount of both expected cash inflows and additional financings and a risk-adjustment factor reflecting the uncertainty inherent in the cash flows primarily driven by litigation risk, which changes as a result of observable litigation events. These assumptions are considered Level 3 inputs. A cash flow forecast is developed for each capital provision asset based on the anticipated financing commitments, damages or settlement estimates and the Group’s contractual entitlement. Cash flow forecasts incorporate management’s assumptions related to creditworthiness of the counterparty and collectability. In cases where cash flows are denominated in a foreign currency, forecasts are developed in the applicable foreign currency and translated to US dollars. Capital provision assets are recorded at initial fair value, which is equivalent to the initial transaction price for a given capital provision asset, based on an assessment that it is an arm’s-length transaction between independent third parties and an orderly transaction between market participants. Using the cash flow forecast and a discount rate, an appropriate risk-adjustment factor is calculated to be applied to the forecast cash inflows to calibrate the valuation model to the initial transaction price. Each reporting period, the cash flow forecast is updated based on the best available information on damages or settlement estimates and it is determined whether there has been an objective event in the underlying litigation process, which would change the litigation risk and thus the risk-adjustment factor associated with the capital provision asset. The risk-adjustment factor as adjusted for any objective events in the underlying litigation process is referred to as the adjusted risk premium. For example, assume the risk premium at inception is calculated to be 65%, which is held constant until there is a milestone event. Assuming there is a favorable trial court ruling one year later for which the applicable milestone factor is 50%, then the risk premium would be adjusted to 32.5%, effectively releasing 50% of the original 65% risk premium haircut that was applied. Conversely, assuming there is a negative event one year later for which the applicable milestone factor is (50)%, then the risk premium would be adjusted to 82.5%, effectively closing the gap between the original risk premium of 65% and 100% by 50%. These objective events could include, among others: ▪ A significant positive ruling or other objective event prior to any trial court judgment ▪ A favorable trial court judgment ▪ A favorable judgment on the first appeal ▪ The exhaustion of as-of-right appeals ▪ In arbitration cases, where there are limited opportunities for appeal, issuance of a tribunal award ▪ An objective negative event at various stages in the litigation process Each reporting period, the updated risk-adjusted cash flow forecast is discounted at the then current discount rate to measure fair value. See note 15 ( Fair value of assets and liabilities In a small number of instances, the Group has the benefit of a secondary sale of a portion of an asset or liability. When this occurs, the market evidence is factored into the valuation process to maximize the use of relevant observable inputs. Secondary sales are evaluated for relevance, including whether such transactions are orderly, and weight is attributed to the market price accordingly, which may include calibrating the valuation model to observed market price. |
Non-controlling interests | Non-controlling interests For entities that are consolidated, but not wholly owned, a portion of the income or loss and corresponding equity is allocated to owners other than the Company. The aggregate of the income or loss and corresponding equity that is not owned by the Company is included in non-controlling interests in the consolidated financial statements. Non-controlling interests also include ownership interests in certain consolidated private funds and VIEs. Non-controlling interests are presented as a separate component of shareholders’ equity in the consolidated statements of financial position. The primary components of non-controlling interests are separately presented in the consolidated statements of changes in equity to clearly distinguish the interest in the Group and other ownership interests in the consolidated entities. Net income/(loss) includes the net income/(loss) attributable to the holders of non-controlling interests in the consolidated statements of comprehensive income. Profits and losses are allocated to non-controlling interests in proportion to their relative ownership interests regardless of their basis. Non-controlling interests exclude the third-party interests in Colorado as it represents a consolidated entity that holds a single financial asset and does not have any other business activity. |
Asset management income | Asset management income Asset management income is derived from the governing agreements in place with the Group’s private funds. The rate or amount at which fees are charged, the basis on which such fees are calculated and the timing of payments vary across private funds and, as to a particular private fund, may also vary across investment options available to underlying investors in, or members of, the private fund. Management fees are generally based on an agreed percentage of a private fund’s commitments and/or amounts committed or deployed, depending on the private fund agreement. Management fees are recognized over time as the services are provided. In addition, the Group receives performance fees from its private funds, which are earned when contractually agreed performance levels are exceeded within specified performance measurement periods. The Group’s private funds (other than BOF-C and the Advantage Fund) use a so-called “European” structure for the payment of performance fees, whereby the manager is not paid any performance fees until private fund investors have had their entire capital investment repaid. This contrasts with a so-called “American” structure for the payment of performance fees, whereby the performance fees are paid on profitable resolutions as they occur. Performance fees are recognized when a reliable estimate of the performance fee can be made and it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. |
Insurance activities | Insurance activities The Group (i) acts as an administrator in the sale of legal expenses insurance policies issued in the name of Great Lakes Reinsurance (UK) plc, a subsidiary of MunichRe, under a binding authority agreement, and (ii) underwrites legal expenses insurance policies through its wholly owned Guernsey insurer, Burford Worldwide Insurance Limited. Income earned from acting as insurance administrator and underwriting legal expenses insurance policies is included in “Other income”. |
Leases | Leases At the inception of any arrangement, the Group determines whether the arrangement is or contains a lease based on the unique facts and circumstances present in the arrangement. Leases are recognized as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Group. The Group recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. In calculating the present value, the Group uses its incremental borrowing rate at the lease commencement date as the interest rate implicit in the lease is not readily determinable. The lease agreements generally contain lease and non-lease components. Non-lease components primarily include payments for maintenance and utilities. The Group combines fixed payments for non-lease components with its lease payments and accounts for them together as a single lease component which increases the amount of its lease assets and liabilities. Payments under the lease arrangements are primarily fixed. Variable rents, if any, are expensed as incurred. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to the consolidated statements of operations over the period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The right-of-use asset is depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis. The right-of-use asset and associated lease liability are derecognized upon the termination of a lease agreement. The Group has elected to not recognize leases with an original term of one year or less in the consolidated statements of financial position. The Group typically only includes an initial lease term in its assessment of a lease arrangement, whereas options to renew a lease are not included in this assessment unless there is a reasonable certainty that the lease will be renewed. In the consolidated statements of financial position, right-of-use assets are included within other assets, and lease liabilities are included in other liabilities. |
Compensation and benefits | Compensation and benefits Salaries and benefits Salaries and benefits include base salaries and employee benefits. Annual incentive compensation Annual incentive compensation includes discretionary and non-discretionary annual bonuses that are generally accrued over the related service period. Under certain non-discretionary arrangements, the Company may require that a portion of the incentive compensation distributed to its employees be allocated as RSUs under the LTIP. Such share-based awards are recorded as share-based compensation expense ratably over the relevant service period once granted. Share-based compensation Share-based compensation consists of RSUs with service-based and/or performance-based (which in turn may include performance-based and/or market-based) conditions. The fair value of these RSUs is estimated using the Monte-Carlo model at the grant date. The Group recognizes share-based compensation expense ratably over the relevant service period and accounts for forfeitures based on its estimates. Forfeiture estimates are trued up at the end of the vesting period to ensure that share-based compensation expense is recognized only for those RSUs that ultimately vest. Upon vesting of an RSU award, ordinary shares (which are either purchased on the open market or newly issued) are released to employees net of any applicable income tax withholding. Legacy asset recovery incentive compensation including accruals and long-term incentive compensation including accruals Incentive compensation, which includes the “phantom carry pool” program, primarily consists of a portion of gains on capital provision assets or performance fees earned from certain of the Group’s private funds that are allocated to employees. Incentive compensation amounts are not paid until the related gains on capital provision assets or performance fees have been realized in cash by the Group. Incentive compensation amounts are recorded as the related fair value gains or losses on capital provision assets or performance fees are recognized. Accordingly, incentive compensation amounts can be reversed during periods when there is a decline in fair value or performance revenues that were previously recorded. |
Business combinations | Business combinations Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measured at fair value on the acquisition date. Acquisition-related costs are expensed as incurred and included in the consolidated statements of operations. When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions at the acquisition date. Any contingent consideration to be transferred by the acquirer will be recognized at fair value at the acquisition date. Subsequent changes in the fair value of contingent consideration classified as an asset or liability are reflected in the consolidated statements of operations. Contingent consideration classified as equity is not remeasured, and its subsequent settlement is accounted for within shareholders’ equity. |
Goodwill | Goodwill Goodwill arises as a result of the acquisition of subsidiaries and represents the excess of the purchase consideration over the fair value of the Group’s share of the assets acquired and the liabilities assumed on the acquisition date. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purposes of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group’s reporting units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units. The Group tests goodwill acquired in a business combination annually for impairment. |
Foreign currency translation | Foreign currency translation Functional and presentation currency Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which such entity operates (the “ functional currency presentation currency Certain subsidiaries operate and prepare financial statements denominated in pound sterling and Australian dollar. For the purposes of preparing consolidated financial statements, those subsidiaries’ assets and liabilities are translated at exchange rates prevailing at each applicable reporting date. Income and expense items are translated at average exchange rates for the reporting period. Non-monetary items are measured using the exchange rate at the date of the initial transaction. Any exchange rate-related differences are recognized in other comprehensive income/(loss). Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rate prevailing at the transaction date. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies, including intragroup balances, are recognized in the consolidated statements of operations as part of the income or loss, as applicable, for the period. See note 6 ( Capital provision assets Since April 2016, certain intragroup balances have been considered as part of a net investment in a foreign operation. Gains and losses on such balances are recognized in other comprehensive income/(loss), with gains of $0.2 million and $0.4 million recognized for the years ended December 31, 2023 and 2021, respectively, and a loss of $0.4 million recognized for the year ended December 31, 2022. |
Expenses | Expenses All expenses are accounted for on an accruals basis. |
Finance costs | Finance costs Finance costs represent interest and issuance expenses of outstanding indebtedness calculated using the effective interest rate method recognized in the consolidated statements of operations. |
Gain/(loss) on debt extinguishment | Gain/(loss) on debt extinguishment Gain/(loss) on debt extinguishment represents a gain or loss arising from the difference between the amortized cost and the cost of extinguishing the debt on the extinguishment date and is recognized in the consolidated statements of operations. |
Income taxes | Income taxes The Group computes income taxes using the asset and liability method, under which deferred income taxes are recognized based on the differences between the carrying amounts and the respective tax bases of the Group’s assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the periods in which the Group expects the temporary differences to reverse. The effect of a change in tax rates on deferred taxes is recognized in income/(loss) before income taxes in the consolidated statements of operations for the period that includes the enactment date. The Group routinely evaluates the likelihood of realizing the benefit of its deferred tax assets and may record a valuation allowance if, based on all available evidence, it determines that a portion of the tax benefit will not be realized. In evaluating the Group’s ability to recover its deferred tax assets within the jurisdictions from which they arise, the Group considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies and results of recent operations. If the Group determines that it would be able to realize its deferred tax assets in the future in excess of their net recorded amount, the Group would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Group evaluates its exposures associated with its various tax filing positions and recognizes a tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the relevant tax authorities, including resolutions of any related appeals or litigation processes, based on the technical merits of the Group’s tax filing position. The tax benefits recognized in the consolidated financial statements from a tax filing position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Group adjusts its unrecognized tax benefit liability and income tax expense in the period in which the uncertain tax position is effectively settled, the statute of limitations expires for the relevant tax authority to examine the tax position or when new information becomes available. Interest and penalties related to income tax matters are recorded in other expenses in the consolidated statements of operations. Accrued interest and penalties are included within the related tax balances in the consolidated statements of financial position. |
Dividends | Dividends Dividends paid during the period are recorded as a reduction to retained earnings in the consolidated statements of changes in equity. |
Property and equipment | Property and equipment Property and equipment are recorded at cost less accumulated depreciation and provision for impairment and are included in other assets in the consolidated statements of financial position. Depreciation is provided to write off the cost less estimated residual value in equal instalments over the estimated useful lives of the assets. The table below sets forth the expected useful lives of the Group’s various assets. Property and equipment Useful life Leasehold improvements Life of lease Fixtures, fittings and equipment 5 years Computer hardware and software 3 years The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the net sales proceeds and the carrying amount of the asset and is recognized in income/(loss) before income taxes in the consolidated statements of operations. |
Prepayments and other payables | Prepayments and other payables Prepayments and other payables are recognized at nominal value, are non-interest-bearing and are recorded in other assets and other liabilities, as applicable, in the consolidated statements of financial position. |
Shareholders' equity | Shareholders’ equity Ordinary shares are classified as equity in shareholders’ equity. Contingent shares are classified as equity in shareholders’ equity, where contingent shares will be issued and converted to ordinary shares only after the specified conditions have been satisfied. Additional paid-in capital includes the obligation for the issuance of ordinary shares to the Group’s employees under the LTIP. Incremental costs directly attributable to the issuance of new ordinary shares are deducted from equity in shareholders’ equity. |
Net income/(loss) per ordinary share | Net income/(loss) per ordinary share The Group presents basic and diluted net income/(loss) per ordinary share. Basic net income/(loss) per ordinary share excludes potential dilution and is computed by dividing net income/(loss) attributable to ordinary shares by the weighted average number of ordinary shares issued and outstanding during the period. Diluted income/(loss) per ordinary share reflects the potential dilution that could occur if ordinary shares were issued pursuant to the Group’s share-based compensation awards. The potential dilution from share-based compensation awards is computed using the treasury stock method based on the average market value of ordinary shares during the period. |
Recently issued or adopted accounting pronouncements | Recently issued or adopted accounting pronouncements There have been no recently issued or adopted accounting pronouncements that had or are expected to have a material impact on the consolidated financial statements. In October 2023, the Financial Accounting Standards Board (the “ FASB Disclosure Improvements ASU 2023-06 requirements of a variety of topics and align the requirements in the FASB’s accounting standard codification with the SEC’s regulations. The amendments set forth in ASU 2023-06 will be effective on the date, on which the related disclosures are removed from Regulation S-X or Regulation S-K by the SEC, and will no longer be effective if the SEC has not removed the applicable disclosure requirement by June 30, 2027. The Group is currently evaluating the impact of ASU 2023-06 on its consolidated financial statements. In November 2023, the FASB issued Accounting Standards Update 2023-07, Segment Reporting (Topic 280) ASU 2023-07 In December 2023, the FASB issued Accounting Standards Update 2023-09, Income Taxes (Topic 740) ASU 2023-09 |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of significant accounting policies | |
Schedule of expected useful lives of property, plant and equipment | Property and equipment Useful life Leasehold improvements Life of lease Fixtures, fittings and equipment 5 years Computer hardware and software 3 years |
Supplemental cash flow data (Ta
Supplemental cash flow data (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental cash flow data | |
Schedule of supplemental breakout of the cash inflows and outflows for capital provision assets | Year ended December 31, 2023 Capital provision- Capital provision- ($ in thousands) direct assets indirect assets Total Proceeds from capital provision assets 494,472 64,890 559,362 Increase in payable for capital provision assets 2,965 - 2,965 Funding of capital provision assets (505,893) (176,134) (682,027) Year ended December 31, 2022 Capital provision- Capital provision- ($ in thousands) direct assets indirect assets Total Proceeds from capital provision assets 349,062 38,724 387,786 Funding of capital provision assets (605,402) (121,896) (727,298) Year ended December 31, 2021 Capital provision- Capital provision- ($ in thousands) direct assets indirect assets Total Proceeds from capital provision assets 338,098 58,317 396,415 Decrease in payable for capital provision assets (256) - (256) Funding of capital provision assets (672,931) - (672,931) |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income taxes | |
Schedule of domestic and foreign pre-tax income | Years ended December 31, ($ in thousands) 2023 2022 2021 Domestic 11,695 10,735 (1,398) Foreign 726,588 98,282 4,187 Income/(loss) before income taxes 738,283 109,017 2,789 |
Schedule of reconciliation of taxes from statutory rate to the income tax (benefit) on pre-tax income (loss) | Years ended December 31, ($ in thousands) 2023 2022 2021 Statutory rate - - - Foreign rate differential 4,800 10,916 3,406 Compensation 23,848 5,245 5,554 Valuation allowance 446 (3,918) 14,874 Withholding tax 1,928 1,082 49 Non-deductible taxes - (802) - Prior period adjustments (468) 129 1,763 Impairment - - (39) Non-taxable income (1,984) - (15,541) Other, net (8,486) (1,094) (339) Provision for/(benefit from) income taxes 20,084 11,558 9,727 |
Schedule of foreign income tax rate differential | Years ended December 31, ($ in thousands) 2023 2022 2021 US subsidiaries at statutory tax rate 1,884 12,428 (10,961) Singapore subsidiaries at statutory tax rate (570) (586) 140 Irish subsidiaries at statutory tax rate 6 (11) 584 UK subsidiaries at statutory tax rate 3,487 (942) 13,632 Other (7) 27 11 Total 4,800 10,916 3,406 |
Schedule of provision (benefit) for income taxes | Years ended December 31, ($ in thousands) 2023 2022 2021 Current: Domestic (Guernsey) - - - Foreign - US federal and state 12,417 3,844 (984) Foreign - other and withholding 1,804 (1,642) (902) Total current provision for/(benefit from) income taxes 14,221 2,202 (1,886) Deferred: Domestic (Guernsey) - - - Foreign - US federal and state 8,982 6,728 9,989 Foreign - other (3,119) 2,628 1,624 Total deferred provision for/(benefit from) income taxes 5,863 9,356 11,613 Total provision for/(benefit from) income taxes 20,084 11,558 9,727 |
Schedule of deferred tax assets and liabilities | December 31, ($ in thousands) 2023 2022 Deferred tax assets: Compensation and benefit accruals 22,443 10,087 Net operating loss carryforwards 3,692 219 Non-deductible and excess interest 32,260 28,114 Unrealized loss - - Acquisition costs 411 463 Capital lease 153 153 Other 1,236 928 Total deferred tax assets (1) 60,195 39,964 Deferred tax liabilities: Compensation and benefit accruals - - Depreciation and amortization (772) (257) Goodwill (12,873) (10,413) Unrealized gain (77,310) (57,319) Total deferred tax liabilities (1) (90,955) (67,989) Net deferred tax position (30,760) (28,025) Valuation allowance (19,252) (16,864) Net deferred tax liabilities (50,012) (44,889) 1. Total deferred tax assets and liabilities in this table are shown on a gross basis. Deferred tax assets and liabilities as shown in the consolidated statements of financial position are offset within each tax jurisdiction, to the extent that they relate to the same taxable entity. |
Schedule of net operating loss carryforwards | December 31, ($ in thousands) 2023 2022 US federal (1) - - US state (2) 9,427 22,624 Foreign (1) 3,692 17,018 1. US federal and foreign net operating losses have indefinite carryforward periods. 2. US state operating losses will expire on various dates from 2038 through 2042. |
Segment reporting (Tables)
Segment reporting (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment reporting | |
Schedule of Burford's reportable business segments | Year ended December 31, 2023 Reconciliation Asset Total Adjustment for Capital management and Other segments third-party Total ($ in thousands) provision other services corporate (Burford-only) interests (1) consolidated Capital provision income/(loss) 896,371 - - 896,371 445,552 1,341,923 Plus/(Less): Third-party interests in capital provision assets - - - - (279,263) (279,263) Asset management income/(loss)* - 63,712 - 63,712 (56,070) 7,642 Marketable securities income/(loss) and bank interest - - 12,067 12,067 141 12,208 Other income/(loss)* - 4,392 - 4,392 - 4,392 Total revenues 896,371 68,104 12,067 976,542 110,360 1,086,902 Operating expenses 197,478 18,727 52,333 268,538 2,698 271,236 Other expenses Finance costs 94,669 1,754 2,713 99,136 (1) 99,135 Foreign currency transactions (gains)/losses - - (21,737) (21,737) (15) (21,752) Total other expenses 94,669 1,754 (19,024) 77,399 (16) 77,383 Income/(loss) before income taxes 604,224 47,623 (21,242) 630,605 107,678 738,283 *Includes the following revenue from contracts with customers for services transferred over time - 64,473 - 64,473 (56,070) 8,403 1. Adjusted for third-party interests in non-wholly owned consolidated entities, which included BOF-C, the Strategic Value Fund, the Advantage Fund, Colorado and several other entities in which the Company holds investments and there is a third-party partner in, or owner of, those entities. Year ended December 31, 2022 Reconciliation Asset Total Adjustment for Capital management and Other segments third-party Total ($ in thousands) provision other services corporate (Burford-only) interests (1) consolidated Capital provision income/(loss) 202,878 - - 202,878 116,230 319,108 Plus/(Less): Third-party interests in capital provision assets - - - - (494) (494) Asset management income/(loss)* - 56,080 - 56,080 (46,964) 9,116 Marketable securities income/(loss) and bank interest - - (7,594) (7,594) (150) (7,744) Other income/(loss)* - (759) - (759) - (759) Total revenues* 202,878 55,321 (7,594) 250,605 68,622 319,227 Operating expenses 72,508 27,965 22,223 122,696 1,576 124,272 Other expenses Finance costs 71,792 1,780 3,817 77,389 - 77,389 (Gains)/Losses on debt extinguishment 812 20 43 875 - 875 Foreign currency transactions (gains)/losses - - 7,581 7,581 93 7,674 Total other expenses 72,604 1,800 11,441 85,845 93 85,938 Income/(loss) before income taxes 57,766 25,556 (41,258) 42,064 66,953 109,017 *Includes the following revenue from contracts with customers for services transferred over time - 55,321 - 55,321 (46,964) 8,357 1. Adjusted for third-party interests in non-wholly owned consolidated entities, which included BOF-C, the Strategic Value Fund, Colorado and several other entities in which the Company holds investments and there is a third-party partner in, or owner of, those entities. Year ended December 31, 2021 Reconciliation Asset Total Adjustment for Capital management and Other segments third-party Total ($ in thousands) provision other services corporate (Burford-only) interests (1) consolidated Capital provision income/(loss) 156,043 - - 156,043 38,511 194,554 Plus/(Less): Third-party interests in capital provision assets - - - - 195 195 Asset management income/(loss)* - 28,745 - 28,745 (14,349) 14,396 Marketable securities income/(loss) and bank interest - - 774 774 1,091 1,865 Other income/(loss)* - 6,320 - 6,320 - 6,320 Total revenues* 156,043 35,065 774 191,882 25,448 217,330 Operating expenses 90,343 33,280 21,488 145,111 3,635 148,746 Other expenses Finance costs 52,537 1,360 4,750 58,647 - 58,647 (Gains)/Losses on debt extinguishment 1,477 38 134 1,649 - 1,649 Foreign currency transactions (gains)/losses 17 - 5,482 5,499 - 5,499 Total other expenses 54,031 1,398 10,366 65,795 - 65,795 Income/(loss) before income taxes 11,669 387 (31,080) (19,024) 21,813 2,789 *Includes the following revenue from contracts with customers for services transferred over time - 35,065 - 35,065 (14,349) 20,716 1. Adjusted for third-party interests in non-wholly owned consolidated entities, which included BOF-C, the Strategic Value Fund, Colorado and several other entities in which the Company holds investments and there is a third-party partner in, or owner of, those entities. |
Schedule of Burford's assets by reporting segment | Reconciliation Asset Total Adjustment for Capital management and Other segments third-party Total ($ in thousands) provision other services corporate (Burford-only) interests (1) consolidated Total assets at December 31, 2023 4,025,920 74,591 115,353 4,215,864 1,621,530 5,837,394 Total assets at December 31, 2022 2,970,841 97,863 149,722 3,218,426 1,069,933 4,288,359 1. Adjusted for third-party interests in non-wholly owned consolidated entities, which included BOF-C, the Strategic Value Fund, the Advantage Fund, Colorado and several other entities in which the Company holds investments and there is a third-party partner in, or owner of, those entities. |
Capital provision assets (Table
Capital provision assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Capital provision assets. | |
Schedule of reconciliation of capital provision assets | Years ended December 31, ($ in thousands) 2023 2022 At beginning of period 3,735,556 3,117,263 Deployments 682,027 727,298 Realizations (708,293) (426,734) Income/(loss) for the period 1,333,262 330,811 Foreign exchange gains/(losses) 2,836 (13,082) At end of period 5,045,388 3,735,556 Capital provision-direct assets 4,859,879 3,620,687 Capital provision-indirect assets 185,509 114,869 Total capital provision assets 5,045,388 3,735,556 Unrealized fair value at end of period 2,764,825 1,689,407 |
Schedule of capital provision income on consolidated statement of comprehensive income | Years ended December 31, ($ in thousands) 2023 2022 2021 Realized gains/(losses) 251,618 161,707 153,607 Fair value adjustment during the period, net of previously recognized unrealized gains transferred to realized gains 1,081,644 169,104 45,804 Income/(loss) on capital provision assets 1,333,262 330,811 199,411 Interest and other income/(loss) - 2,651 160 Impairment of other asset - - (500) Foreign exchange gains/(losses) 8,012 (6,357) (4,517) Net realized and unrealized loss on due from settlement of capital provision assets (1) (11,330) - Gains/(losses) on financial liabilities at fair value through profit or loss - 3,333 - Break fee income 650 - - Total capital provision income as reported in the consolidated statements of operations 1,341,923 319,108 194,554 |
Due from settlement of capita_2
Due from settlement of capital provision assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Due from settlement of capital provision assets. | |
Schedule of due from settlement of capital provision assets | Years ended December 31, ($ in thousands) 2023 2022 At beginning of period 116,582 86,311 Transfer of realizations from capital provision assets 708,293 426,734 Interest and other income - 2,651 Proceeds from capital provision assets (559,362) (387,786) Realized loss (11,330) - Unrealized gain/(loss) on due from settlement of capital provision assets, net of previously recognized unrealized loss transferred to realized loss 11,329 (11,330) Foreign exchange gains/(losses) 28 2 At end of period 265,540 116,582 Current assets 260,370 112,832 Non-current assets 5,170 3,750 Total due from settlement of capital provision assets 265,540 116,582 |
Asset management income (Tables
Asset management income (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Asset management income. | |
Schedule of asset management income | Years ended December 31, ($ in thousands) 2023 2022 2021 Management fee income 7,642 7,321 8,667 Performance fee income - 1,795 5,729 Total asset management income 7,642 9,116 14,396 |
Long term incentive compensat_2
Long term incentive compensation payable (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Long term incentive compensation payable | |
Schedule of changes in long term incentive compensation payable | Years ended December 31, ($ in thousands) 2023 2022 At beginning of period 61,769 48,707 Long-term incentive compensation including accruals 110,129 14,692 Transfer to short-term payable within general expenses payable (3,656) (852) Cash paid (6,867) (729) Foreign exchange gains/(losses) 943 (49) At end of period 162,318 61,769 |
Marketable securities (Tables)
Marketable securities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Marketable securities. | |
Schedule of marketable securities | Years ended December 31, ($ in thousands) 2023 2022 At beginning of period 136,358 175,336 Purchases 40,404 61,609 Proceeds on disposal (74,875) (89,475) Net realized gains/(losses) on disposal (415) (1,647) Fair value movement 6,185 (9,682) Change in accrued interest (171) 593 Foreign exchange gains/(losses) 75 (376) At end of period 107,561 136,358 |
Schedule of marketable securities and bank interest income | Years ended December 31, ($ in thousands) 2023 2022 2021 Net realized gains/(losses) on disposal (415) (1,647) (3,760) Changes in fair value 6,185 (9,682) 1,919 Interest and dividend income 2,453 2,812 2,615 Bank interest 3,985 773 1,091 Total marketable securities income/(loss) and bank interest 12,208 (7,744) 1,865 |
Other assets (Tables)
Other assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other assets. | |
Schedule of other assets | December 31 ($ in thousands) 2023 2022 Reinsurance assets 15,371 16,388 Right-of-use assets 13,851 12,716 Property and equipment 3,561 1,313 Prepayments 9,150 199 Other receivables 21,531 21,240 Total other assets 63,464 51,856 |
Other liabilities (Tables)
Other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other liabilities. | |
Schedule of other liabilities | December 31, ($ in thousands) 2023 2022 General expenses payable 74,527 44,714 Insurance liabilities 22,465 20,488 Lease liabilities 15,853 14,174 Legacy asset recovery incentive compensation 20,816 9,643 Audit fees payable 2,163 2,324 Tax payable 4,226 2,561 Payable for capital provision assets 2,965 - Total other liabilities 143,015 93,904 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt | |
Schedule of debt | Outstanding at Carrying value (at amortized cost) at Fair value (1) at USD equivalent December 31, December 31, face value 2023 (in local 2023 December 31, December 31, December 31, December 31, ($ in thousands) at issuance currency) (in USD) 2023 2022 2023 2022 Burford Capital PLC 6.125% Bonds due 2024 $ 144,020 £- $ - $ - $ 119,993 $ - $ 116,381 5.000% Bonds due 2026 $ 225,803 £175,000 $ 223,073 $ 222,117 $ 209,466 $ 209,048 $ 186,186 Burford Capital Finance LLC 6.125% Bonds due 2025 $ 180,000 $ 180,000 $ 180,000 $ 179,432 $ 179,080 $ 175,797 $ 164,594 Burford Capital Global Finance LLC 6.250% Senior Notes due 2028 $ 400,000 $ 400,000 $ 400,000 $ 394,672 $ 393,430 $ 384,228 $ 358,608 6.875% Senior Notes due 2030 $ 360,000 $ 360,000 $ 360,000 $ 351,631 $ 350,301 $ 352,350 $ 321,314 9.250% Senior Notes due 2031 $ 400,000 $ 400,000 $ 400,000 $ 386,878 $ - $ 424,568 $ - Total debt $ 1,563,073 $ 1,534,730 $ 1,252,270 $ 1,545,991 $ 1,147,083 1. The Group’s outstanding indebtedness is held at amortized cost in the consolidated financial statements and these values represent the fair value equivalent amounts. The Group’s debt securities are classified as Level 2 within the fair value hierarchy. |
Schedule of changes from cash flows and non-cash changes of debt issued, unamortized issuance costs and total finance costs | Years ended December 31, ($ in thousands) 2023 2022 At beginning of period 1,269,085 1,036,475 Debt issued, net of original issue discount 394,464 357,271 Debt issuance costs (8,461) (7,912) Finance costs 99,135 77,389 Interest paid (77,210) (70,781) Foreign exchange (gain)/loss 22,103 (43,446) Debt extinguishment (129,970) (79,911) At end of period 1,569,146 1,269,085 Debt payable 1,534,730 1,252,270 Debt interest payable 34,416 16,815 Total debt and interest payable 1,569,146 1,269,085 The table below sets forth unamortized issuance costs of the outstanding debt securities at the dates indicated. December 31, ($ in thousands) 2023 2022 6.125% Bonds due 2024 - 397 6.125% Bonds due 2025 568 920 5.000% Bonds due 2026 956 1,216 6.250% Senior Notes due 2028 5,328 6,570 6.875% Senior Notes due 2030 6,223 7,212 9.250% Senior Notes due 2031 7,932 - The table below sets forth the components of total finance costs of the outstanding indebtedness for the periods indicated. Years ended December 31, (S in thousands) 2023 2022 2021 Debt interest expense 94,605 74,116 56,454 Debt issuance costs incurred as finance costs 4,530 3,273 2,193 Total finance costs 99,135 77,389 58,647 |
Schedule of Total Assets, Third Party Indebtedness and Revenues Pursuant to Indentures Governing the 2028 Notes, the 2030 Notes and the 2031 Notes | December 31, ($ in thousands) 2023 2022 (1) Company and its Restricted Subsidiaries Total assets 4,922,451 3,643,013 Third-party indebtedness 1,534,730 1,252,270 Unrestricted Subsidiaries Total assets 914,943 645,346 Third-party indebtedness - - 1. T he comparative data at December 31, 2022 in the table above has been amended to correct for immaterial differences. Years ended December 31, (S in thousands) 2023 2022 2021 Company and its Restricted Subsidiaries Total revenues 973,461 245,383 173,405 Unrestricted Subsidiaries Total revenues 113,441 73,844 43,925 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill | |
Schedule of carrying value of goodwill | Asset management Capital and other Other ($ in thousands) provision services corporate Total December 31, 2021 107,991 25,020 1,008 134,019 Foreign exchange gain/(loss) - - (107) (107) December 31, 2022 107,991 25,020 901 133,912 Foreign exchange gain/(loss) - - 53 53 December 31, 2023 107,991 25,020 954 133,965 |
Fair value of assets and liab_2
Fair value of assets and liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair value of assets and liabilities | |
Fair value of financial instruments, grouped by the fair value level of hierarchy and techniques | December 31, 2023 ($ in thousands) Level 1 Level 2 Level 3 Total Assets: Capital provision assets Single case - - 934,131 934,131 Portfolio - - 2,875,881 2,875,881 Portfolio with equity risk - - 142,659 142,659 Legal risk management - - 3,523 3,523 Joint ventures and equity method investments - - 178,628 178,628 Single case with equity risk 10,051 - - 10,051 Assets of consolidated investment companies Core legal finance (BOF-C) 9,914 - 705,092 715,006 Lower risk legal finance (Advantage Fund) - - 185,509 185,509 Due from settlement of capital provision assets - - 265,540 265,540 Marketable securities Government securities 8,004 14,333 - 22,337 Corporate bonds - 53,001 - 53,001 Asset-backed securities - 20,047 - 20,047 Mutual funds 6,529 - - 6,529 Certificates of deposit 5,647 - - 5,647 Total assets 40,145 87,381 5,290,963 5,418,489 Liabilities: Financial liabilities relating to third-party interests in capital provision assets - - 704,196 704,196 Total liabilities - - 704,196 704,196 Net total 40,145 87,381 4,586,767 4,714,293 December 31, 2022 ($ in thousands) Level 1 Level 2 Level 3 Total Assets: Capital provision assets Single case - - 792,745 792,745 Portfolio - - 2,022,406 2,022,406 Portfolio with equity risk - - 99,406 99,406 Legal risk management - - 3,201 3,201 Joint ventures and equity method investments - - 159,225 159,225 Single case with equity risk 8,745 - - 8,745 Assets of consolidated investment companies Complex strategies (Strategic Value Fund) - - 12,657 12,657 Core legal finance (BOF-C) 10,000 - 526,575 536,575 Lower risk legal finance (Advantage Fund) - - 100,596 100,596 Due from settlement of capital provision assets - - 116,582 116,582 Marketable securities Government securities 14,806 2,687 - 17,493 Corporate bonds - 79,899 - 79,899 Asset-backed securities - 32,933 - 32,933 Mutual funds 6,033 - - 6,033 Total assets 39,584 115,519 3,833,393 3,988,496 Liabilities: Financial liabilities relating to third-party interests in capital provision assets - - 425,205 425,205 Total liabilities - - 425,205 425,205 Net total 39,584 115,519 3,408,188 3,563,291 |
Schedule of analysis of the movements in the level 3 financial assets and liabilities | Year ended December 31, 2023 Transfers Income/(loss) Foreign At At beginning Transfers between for the exchange end of ($ in thousands) of period into Level 3 types Deployments Realizations period gains/(losses) period Single case 792,745 - (403) 111,958 (184,998) 215,707 (878) 934,131 Portfolio 2,022,406 - 403 261,853 (301,610) 893,113 (284) 2,875,881 Portfolio with equity risk 99,406 - - 361 - 42,892 - 142,659 Legal risk management 3,201 - - - (944) 115 1,151 3,523 Joint ventures and equity method investments 159,225 - - 5,556 (10,440) 22,007 2,280 178,628 Complex strategies (Strategic Value Fund) 12,657 - - - (15,000) 2,343 - - Core legal finance (BOF-C) 526,575 - - 126,164 (66,499) 118,852 - 705,092 Lower risk legal finance (Advantage Fund) 100,596 - - 176,135 (128,802) 37,580 - 185,509 Total capital provision assets 3,716,811 - - 682,027 (708,293) 1,332,609 2,269 5,025,423 Due from settlement of capital provision assets 116,582 - - 708,293 (559,362) (1) 28 265,540 Total Level 3 assets 3,833,393 - - 1,390,320 (1,267,655) 1,332,608 2,297 5,290,963 Financial liabilities relating to third-party interests in capital provision assets 425,205 - - 230 (502) 279,263 - 704,196 Total Level 3 liabilities 425,205 - - 230 (502) 279,263 - 704,196 Year ended December 31, 2022 (1) Transfers Income/(loss) Foreign At At beginning Transfers between for the exchange end of ($ in thousands) of period into Level 3 types Deployments Realizations period gains/(losses) period Single case 655,674 - (1,916) 161,785 (45,371) 28,243 (5,670) 792,745 Portfolio 1,752,137 - 1,916 272,796 (138,277) 135,962 (2,128) 2,022,406 Portfolio with equity risk 200,484 - - 366 (157,191) 55,747 - 99,406 Legal risk management 2,567 - - 130 - 718 (214) 3,201 Joint ventures and equity method investments 162,103 - - 7,864 (5,916) (1,627) (3,199) 159,225 Complex strategies (Strategic Value Fund) 12,855 - - - (1,663) 1,465 - 12,657 Core legal finance (BOF-C) 329,360 - - 132,006 (53,358) 118,563 4 526,575 Lower risk legal finance (Advantage Fund) - - - 121,896 (22,875) 1,575 - 100,596 Other 2,083 - - - (2,083) - - - Total capital provision assets 3,117,263 - - 696,843 (426,734) 340,646 (11,207) 3,716,811 Due from settlement of capital provision assets 86,311 - - 426,734 (387,786) (8,679) 2 116,582 Total Level 3 assets 3,203,574 - - 1,123,577 (814,520) 331,967 (11,205) 3,833,393 Financial liabilities relating to third-party interests in capital provision assets 424,733 - - 29 (52) 495 - 425,205 Total Level 3 liabilities 424,733 - - 29 (52) 495 - 425,205 1. The comparative data for December 31, 2022 in the table above has been amended to correct for immaterial differences. |
Schedule of key unobservable inputs | ($ in thousands) December 31, 2023 Type: Single case, Portfolio, Joint ventures and equity method investments, Legal risk management, Core legal finance (BOF-C) (1) , Financial liabilities relating to third party interests in capital provision assets Principal value technique: Discounted cash flow Unobservable input: Cost Unrealized Fair value Minimum Maximum Weighted average Discount rate 5.3% 7.3% 7.0% Duration (2) (years) 0.5 7.2 3.4 Adjusted risk premium 0.0% 100.0% 30.2% Positive case milestone factor: Significant ruling or other objective event prior to trial court judgment $ 81,244 $ 50,667 $ 131,911 5% 40% 23% Trial court judgment or tribunal award $ 130,529 $ 61,175 $ 191,704 25% 60% 54% Appeal judgment $ 60,402 $ 57,472 $ 117,874 71% 80% 72% Asset freeze $ 16,621 $ 10,528 $ 27,149 20% 20% 20% Exhaustion of as-of-right appeals $ 34,318 $ 61,828 $ 96,146 80% 80% 80% Exhaustion of all appeals $ 76,872 $ 66,039 $ 142,911 100% 100% 100% Settlement $ 5,877 $ 17,380 $ 23,257 40% 80% 49% Portfolios with multiple factors $ 498,296 $ 405,078 $ 903,374 1% 100% 22% Other $ 338 ($ 171) $ 167 100% 100% 100% Negative case milestone factor: Significant ruling or other objective event prior to trial court judgment $ 34,305 ($ 28,057) $ 6,248 (10)% (60)% (43)% Trial court judgment or tribunal award $ 41,950 ($ 23,577) $ 18,373 (10)% (60)% (59)% Appeal judgment $ 7,989 ($ 7,989) $ - (100)% (100)% (100)% Portfolios with multiple factors $ 29,636 ($ 13,479) $ 16,157 (13)% (60)% (43)% No case milestone: $ 865,568 $ 55,868 $ 921,436 YPF-related assets: $ 60,338 $ 1,311,319 $ 1,371,657 $ 1,944,283 $ 2,024,081 $ 3,968,364 Type: Lower risk legal finance (Advantage Fund) Principal value technique: Discounted cash flow Unobservable input: Cost Unrealized Fair value Minimum Maximum Weighted average Discount rate $ 164,259 $ 21,250 $ 185,509 12.4% 21.4% 17.5% Duration (2) (years) 1.0 2.7 1.9 Type: Portfolio with equity risk, Core legal finance (BOF-C) (1) Principal value technique: Discounted cash flow Unobservable input: Cost Unrealized Fair value Minimum Maximum Weighted average Discount rate $ 123,069 $ 44,285 $ 167,354 15.0% 15.0% 15.0% Resolution timing (years) 0.8 4.8 1.7 Conversion ratio 2.6 2.6 2.6 Type: Due from settlement of capital provision assets Principal value technique: Discounted cash flow Unobservable input: Cost Unrealized Fair value Minimum Maximum Weighted average Collection risk $ 265,540 $ - $ 265,540 0% 100% 0% Level 3 assets and liabilities, net $ 2,497,151 $ 2,089,616 $ 4,586,767 1. Includes the proportional investment in these capital provision assets held by BOF-C. 2. Duration refers to the expected timing of a favorable outcome. See note 2 ( Summary of significant accounting policies—Fair value of financial instruments ) to the Group’s condensed consolidated financial statements for additional information with respect to the valuation methodology for Level 3 assets. ($ in thousands) December 31, 2022 (1) Type: Single case, Portfolio, Joint ventures and equity method investments, Legal risk management, Core legal finance (BOF-C) (2) , Financial liabilities relating to third party interests in capital provision assets Principal value technique: Discounted cash flow Unobservable input: Cost Unrealized Fair value Minimum Maximum Weighted average Discount rate 5.8% 7.9% 7.3% Duration (3) (years) 0.2 8.2 3.4 Adjusted risk premium 0.0% 94.2% 38.1% Positive case milestone factor: Significant ruling or other objective event prior to trial court judgment $ 58,724 $ 71,469 $ 130,193 5% 40% 20% Trial court judgment or tribunal award $ 116,692 $ 97,642 $ 214,334 4% 60% 53% Appeal judgment $ 90,045 $ 88,018 $ 178,063 60% 80% 67% Asset freeze $ 16,621 $ 8,598 $ 25,219 20% 20% 20% Settlement $ 52,812 $ 44,384 $ 97,196 40% 80% 76% Portfolios with multiple factors $ 380,101 $ 240,929 $ 621,030 1% 100% 14% Other $ 337 ($ 182) $ 155 100% 100% 100% Negative case milestone factor: Significant ruling or other objective event prior to trial court judgment $ 20,259 ($ 14,873) $ 5,386 (10)% (60)% (13)% Trial court judgment or tribunal award $ 13,201 ($ 3,962) $ 9,239 (55)% (60)% (56)% Appeal judgment $ 14,431 ($ 13,860) $ 571 (80)% (80)% (80)% Portfolios with multiple factors $ 2,450 ($ 999) $ 1,451 (50)% (50)% (50)% No case milestone: $ 941,340 $ 14,382 $ 955,722 YPF-related assets: $ 54,625 $ 768,410 $ 823,035 $ 1,761,638 $ 1,299,956 $ 3,061,594 Type: Lower risk legal finance (Advantage Fund) Principal value technique: Discounted cash flow Unobservable input: Cost Unrealized Fair value Minimum Maximum Weighted average Discount rate $ 100,331 $ 265 $ 100,596 12.5% 21.5% 16.7% Duration (3) (years) 0.7 3.7 2.5 Type: Portfolio with equity risk, Core legal finance (BOF-C) (2) Principal value technique: Discounted cash flow Unobservable input: Cost Unrealized Fair value Minimum Maximum Weighted average Discount rate $ 123,069 ($ 6,310) $ 116,759 16.5% 16.5% 16.5% Resolution timing (years) 1.8 3.8 2.8 Conversion ratio 2.6 2.6 2.6 Type: Due from settlement of capital provision assets Principal value technique: Discounted cash flow Unobservable input: Cost Unrealized Fair value Minimum Maximum Weighted average Collection risk $ 127,912 ($ 11,330) $ 116,582 0% 100% 0% Type: Complex strategies (Strategic Value Fund) Principal value technique: Other Unobservable input: Cost Unrealized Fair value Other $ 11,156 $ 1,501 $ 12,657 Level 3 assets and liabilities, net $ 2,124,106 $ 1,284,082 $ 3,408,188 1. The comparative data for December 31, 2022 in the table above has been amended to correct for immaterial differences. 2. Includes the proportional investment in these capital provision assets held by BOF-C. 3. Duration refers to the expected timing of a favorable outcome. See note 2 ( Summary of significant accounting policies—Fair value of financial instruments ) to the Group’s condensed consolidated financial statements for additional information with respect to the valuation methodology for Level 3 assets. |
Schedule of increase (decrease) in consolidated income and net assets due change in actual interest rates | December 31, ($ in thousands) 2023 2022 (1) +100 bps interest rates (161,110) (116,874) +50 bps interest rates (81,745) (59,527) -50 bps interest rates 82,724 59,212 -100 bps interest rates 167,944 130,076 1. The comparative data for December 31, 2022 in the table above has been amended to correct for immaterial differences. |
Schedule of increase (decrease) in consolidated income or net assets due to expected timing of favorable outcome | December 31, ($ in thousands) 2023 2022 + 12 months duration (1) (363,901) (250,428) + 6 months duration (1) (188,718) (130,086) -6 months duration (1) 203,442 133,950 -12 months duration (1) 393,248 277,833 1. Duration refers to the expected timing of a favorable outcome. See note 2 ( Summary of significant accounting policies—Fair value of financial instruments ) to the Group’s condensed consolidated financial statements for additional information with respect to the valuation methodology for Level 3 assets. |
Variable interest entities (Tab
Variable interest entities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Variable interest entities | |
Schedule of variable interest entities | December 31, ($ in thousands) 2023 2022 Total assets 1,865,344 1,259,892 Total liabilities (4,716) (5,210) Years ended December 31, ($ in thousands) 2023 2022 2021 Total revenue: 470,216 73,480 26,158 Cash flows: Proceeds 150,775 92,080 139,825 (Funding) (304,348) (291,046) (224,893) Cash balance at period end 24,613 32,966 40,547 December 31, ($ in thousands) 2023 2022 On-balance sheet exposure 22,426 16,724 Off-balance sheet exposure - undrawn commitments 2,768 3,791 Maximum exposure to loss 25,194 20,515 |
Joint ventures and equity met_2
Joint ventures and equity method investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Joint ventures and equity method investments | |
Schedule of fair value of the Group's interest in joint ventures and equity method investments | December 31, ($ in thousands) 2023 2022 Interest in joint ventures 172,958 174,337 Interest in equity method investments 468 1,359 |
Schedule of fair value of the Group's share of commitments for the joint ventures and equity method investments | December 31, ($ in thousands) 2023 2022 Commitments for joint ventures 139,753 146,275 Commitments for equity method investments 15,513 14,651 |
Shareholders' equity (Tables)
Shareholders' equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Shareholders' equity | |
Schedule of dividends | ($ in cents) Cash dividend per ordinary share Record date 2023 year First half 6.25 November 10, 2023 Second half 6.25 May 24, 2024 Total for the year ended December 31, 2023 12.50 2022 year First half 6.25 November 4, 2022 Second half 6.25 May 26, 2023 Total for the year ended December 31, 2022 12.50 2021 year First half 6.25 November 12, 2021 Second half 6.25 May 27, 2022 Total for the year ended December 31, 2021 12.50 |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-based compensation | |
Schedule of RSUs' activity | Number of Weighted average ordinary grant date fair value (Ordinary shares in thousands) shares per ordinary share Unvested RSUs at December 31, 2022 4,707 $ 7.15 Granted (1) 1,727 6.89 Vested (2) (1,654) 4.15 Forfeited (108) 8.43 Unvested RSUs at December 31, 2023 4,672 $ 8.09 1. The aggregate grant date fair value of RSUs granted during the years ended December 31, 2023, 2022 and 2021 was $11.9 million, $12.2 million and $16.6 million, respectively. The associated weighted average grant date fair value per ordinary share for RSUs granted during the years ended December 31, 2023, 2022 and 2021 was $6.89 , $8.90 and $8.74 , respectively. 2. The aggregate fair value of RSUs that vested during the years ended December 31, 2023, 2022 and 2021 was $6.9 million, $9.9 million and $2.5 million, respectively. |
Schedule of fair values and key assumptions used for valuing RSUs granted | 2023 2022 2021 Dividend yield 0.72% 0.72% 0.48% Expected volatility 46.70% 52.90% 54.70% Risk-free interest rate 3.67% 2.65% 0.34% Expected term (years) 3.00 3.00 3.00 Weighted average fair value per ordinary share ($) 6.89 8.90 8.74 Weighted average price per ordinary share ($) 7.19 9.37 9.10 |
Earnings per ordinary share (Ta
Earnings per ordinary share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings per ordinary share | |
Schedule of computation for basic and diluted net income per ordinary share | Years ended December 31, ($ in thousands, except share data) 2023 2022 2021 Net income/(loss) attributable to Burford Capital Limited shareholders 610,522 30,506 (28,751) Net income/(loss) attributable to Burford Capital Limited shareholders per ordinary share: Basic 2.79 0.14 (0.13) Diluted 2.74 0.14 (0.13) Weighted average ordinary shares outstanding: Basic 218,865,816 218,757,232 219,049,877 Dilutive effect of share-based awards 4,149,074 3,045,254 - Diluted 223,014,890 221,802,486 219,049,877 |
Financial commitments and con_2
Financial commitments and contingent liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Financial commitments and contingent liabilities | |
Schedule of maturity profile of the Group's financial liabilities | December 31, 2023 ($ in thousands) Leases Debt payable Debt interest payable Other liabilities Long-term incentive compensation payable Financial liabilities relating to third-party interests in capital provision assets 2024 2,482 - 109,340 67,956 - - 2025 2,732 180,000 108,929 4,781 - - 2026 2,748 223,073 97,904 4,146 - - 2027 2,755 - 86,750 1,449 - - 2028 2,763 400,000 74,250 1,344 - - Thereafter 6,951 760,000 148,125 1,977 - - No contractual maturity date - - - 23,044 162,318 704,196 Total undiscounted cash flows 20,431 1,563,073 625,298 104,697 162,318 704,196 Lease present value adjustment (4,578) Lease liabilities 15,853 |
Schedule of capital provisions for undrawn commitments | December 31, ($ in thousands) 2023 2022 Definitive 768,311 767,786 Discretionary 977,733 822,348 Total legal finance undrawn commitments 1,746,044 1,590,134 Legal risk (definitive) 55,583 81,193 Total capital provision-direct undrawn commitments 1,801,627 1,671,327 Capital provision-indirect undrawn commitments 71,662 49,400 Total capital provision undrawn commitments 1,873,289 1,720,727 |
Schedule of components of lease expense | Years ended December 31, ($ in thousands) 2023 2022 2021 Operating lease cost 2,729 2,280 2,273 Cash paid for amounts included in the measurement of operating lease liabilities 2,175 2,384 2,456 |
Schedule of right-of-use assets and the related liabilities | December 31, 2023 2022 Right-of-use assets 13,851 12,716 Operating lease liabilities 15,853 14,174 Weighted average remaining lease term (years) 7.8 8.0 Weighted average discount rate 6.7% 6.7% |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related party transactions | |
Schedule of fundings and proceeds from joint ventures and equity method investments | For the years ended ($ in thousands) 2023 2022 2021 Fundings of joint ventures and equity method investments 9,285 7,864 19,327 Proceeds from joint ventures and equity method investments 16,141 5,917 1,799 |
Summary of significant accoun_4
Summary of significant accounting policies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Summary of significant accounting policies | |||
Percentage of outstanding voting shares | 50% | ||
Carrying values short-term investments | $ 13 | $ 1 | |
Intragroup foreign currency transaction gains (losses) | $ 0.2 | $ (0.4) | $ 0.4 |
Summary of significant accoun_5
Summary of significant accounting policies - Useful Life of Property, plant and equipment (Details) | Dec. 31, 2023 |
Fixtures, fitting and equipment | |
Property, Plant and Equipment | |
Useful life (in years) | 5 years |
Computer hardware and software | |
Property, Plant and Equipment | |
Useful life (in years) | 3 years |
Supplemental cash flow data (De
Supplemental cash flow data (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Supplemental cash flow data | |||
Capital provision-direct assets | $ 494,472 | $ 349,062 | $ 338,098 |
Capital provision-indirect assets | 64,890 | 38,724 | 58,317 |
Total Proceeds | 559,362 | 387,786 | 396,415 |
Increase (decrease) in payable for capital provision-direct assets | 2,965 | (256) | |
Total Increase (decrease) in payable for capital provision assets | 2,965 | (256) | |
New funding Capital provision-direct assets | (505,893) | (605,402) | (672,931) |
New funding Capital provision-indirect assets | (176,134) | (121,896) | |
Total New funding | $ (682,027) | $ (727,298) | $ (672,931) |
Income taxes - Net income (loss
Income taxes - Net income (loss) before income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income taxes | |||
Domestic | $ 11,695 | $ 10,735 | $ (1,398) |
Foreign | 726,588 | 98,282 | 4,187 |
Income/(loss) before income taxes | $ 738,283 | $ 109,017 | $ 2,789 |
Effective tax rates | 3% | 11% | 349% |
Income taxes - Reconciliation o
Income taxes - Reconciliation of taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income taxes | |||
Foreign rate differential | $ 4,800 | $ 10,916 | $ 3,406 |
Compensation | 23,848 | 5,245 | 5,554 |
Valuation allowance | 446 | (3,918) | 14,874 |
Withholding tax | 1,928 | 1,082 | 49 |
Non-deductible taxes | (802) | ||
Prior period adjustments | (468) | 129 | 1,763 |
Impairment | (39) | ||
Non-taxable income | (1,984) | (15,541) | |
Other, net | (8,486) | (1,094) | (339) |
Provision for/(benefit from) income taxes | $ 20,084 | $ 11,558 | $ 9,727 |
Income taxes - Reconciliation_2
Income taxes - Reconciliation of foreign rate differential (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax | |||
Foreign rate differential | $ 4,800 | $ 10,916 | $ 3,406 |
US | |||
Income Tax | |||
Foreign rate differential | 1,884 | 12,428 | (10,961) |
Singapore | |||
Income Tax | |||
Foreign rate differential | (570) | (586) | 140 |
Irish | |||
Income Tax | |||
Foreign rate differential | 6 | (11) | 584 |
UK | |||
Income Tax | |||
Foreign rate differential | 3,487 | (942) | 13,632 |
Other | |||
Income Tax | |||
Foreign rate differential | $ (7) | $ 27 | $ 11 |
Income taxes - Provision (benef
Income taxes - Provision (benefit) for income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current | |||
Foreign - US federal and state | $ 12,417 | $ 3,844 | $ (984) |
Foreign - other and withholding | 1,804 | (1,642) | (902) |
Total current provision for/(benefit from) income taxes | 14,221 | 2,202 | (1,886) |
Deferred | |||
Foreign - US federal and state | 8,982 | 6,728 | 9,989 |
Foreign - other | (3,119) | 2,628 | 1,624 |
Total deferred provision for/(benefit from) income taxes | 5,863 | 9,356 | 11,613 |
Provision for/(benefit from) income taxes | $ 20,084 | $ 11,558 | $ 9,727 |
Income taxes - Deferred tax ass
Income taxes - Deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Compensation and benefit accruals | $ 22,443 | $ 10,087 |
Net operating loss carryforwards | 3,692 | 219 |
Non-deductible and excess interest | 32,260 | 28,114 |
Acquisition costs | 411 | 463 |
Capital lease | 153 | 153 |
Other | 1,236 | 928 |
Total deferred tax assets | 60,195 | 39,964 |
Deferred tax liabilities: | ||
Depreciation and amortization | (772) | (257) |
Goodwill | (12,873) | (10,413) |
Unrealized gain | (77,310) | (57,319) |
Total deferred tax liabilities | (90,955) | (67,989) |
Net deferred tax position | (30,760) | (28,025) |
Valuation allowance | (19,252) | (16,864) |
Net deferred tax liabilities | $ (50,012) | $ (44,889) |
Income taxes - Net operating lo
Income taxes - Net operating loss carryforward (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
US state | ||
Operating Loss Carryforwards | ||
Operating loss carryforwards | $ 9,427 | $ 22,624 |
Foreign | ||
Operating Loss Carryforwards | ||
Operating loss carryforwards | $ 3,692 | $ 17,018 |
Segment reporting-Revenue (Deta
Segment reporting-Revenue (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Segment reporting | |||
Number of reportable segments | segment | 2 | ||
Plus/(Less): Third-party interests in capital provision assets | $ (279,263) | $ (494) | $ 195 |
Marketable securities income/(loss) and bank interest | 12,208 | (7,744) | 1,865 |
Other income | 4,392 | (759) | 6,320 |
Total revenues | 1,086,902 | 319,227 | 217,330 |
Operating expenses | 271,236 | 124,272 | 148,746 |
Other expenses | |||
Finance costs | 99,135 | 77,389 | 58,647 |
(Gains)/losses on debt extinguishment | 875 | 1,649 | |
Foreign currency transactions (gains)/losses | (21,752) | 7,674 | 5,499 |
Total other expenses | 77,383 | 85,938 | 65,795 |
Income/(loss) before income taxes | 738,283 | 109,017 | 2,789 |
Includes the following revenue from contracts with customers for Services transferred over time | |||
Segment reporting | |||
Revenues | 8,403 | 8,357 | 20,716 |
Capital provision income/(loss) | |||
Segment reporting | |||
Revenues | 1,341,923 | 319,108 | 194,554 |
Management fee income | |||
Segment reporting | |||
Revenues | 7,642 | 7,321 | 8,667 |
Asset management income | |||
Segment reporting | |||
Revenues | 7,642 | 9,116 | 14,396 |
Asset Management and other services | |||
Segment reporting | |||
Revenues | 7,642 | ||
Operating segments | Total segments (Burford-only) | |||
Segment reporting | |||
Marketable securities income/(loss) and bank interest | 12,067 | (7,594) | 774 |
Other income | 4,392 | (759) | 6,320 |
Total revenues | 976,542 | 250,605 | 191,882 |
Operating expenses | 268,538 | 122,696 | 145,111 |
Other expenses | |||
Finance costs | 99,136 | 77,389 | 58,647 |
(Gains)/losses on debt extinguishment | 875 | 1,649 | |
Foreign currency transactions (gains)/losses | (21,737) | 7,581 | 5,499 |
Total other expenses | 77,399 | 85,845 | 65,795 |
Income/(loss) before income taxes | 630,605 | 42,064 | (19,024) |
Operating segments | Total segments (Burford-only) | Includes the following revenue from contracts with customers for Services transferred over time | |||
Segment reporting | |||
Revenues | 64,473 | 55,321 | 35,065 |
Operating segments | Total segments (Burford-only) | Capital provision income/(loss) | |||
Segment reporting | |||
Revenues | 896,371 | 202,878 | 156,043 |
Operating segments | Total segments (Burford-only) | Asset management income | |||
Segment reporting | |||
Revenues | 56,080 | 28,745 | |
Operating segments | Capital provision | |||
Segment reporting | |||
Total revenues | 896,371 | 202,878 | 156,043 |
Operating expenses | 197,478 | 72,508 | 90,343 |
Other expenses | |||
Finance costs | 94,669 | 71,792 | 52,537 |
(Gains)/losses on debt extinguishment | 812 | 1,477 | |
Foreign currency transactions (gains)/losses | 17 | ||
Total other expenses | 94,669 | 72,604 | 54,031 |
Income/(loss) before income taxes | 604,224 | 57,766 | 11,669 |
Operating segments | Capital provision | Capital provision income/(loss) | |||
Segment reporting | |||
Revenues | 896,371 | 202,878 | 156,043 |
Operating segments | Asset Management and other services | |||
Segment reporting | |||
Revenues | 63,712 | ||
Other income | 4,392 | (759) | 6,320 |
Total revenues | 68,104 | 55,321 | 35,065 |
Operating expenses | 18,727 | 27,965 | 33,280 |
Other expenses | |||
Finance costs | 1,754 | 1,780 | 1,360 |
(Gains)/losses on debt extinguishment | 20 | 38 | |
Total other expenses | 1,754 | 1,800 | 1,398 |
Income/(loss) before income taxes | 47,623 | 25,556 | 387 |
Operating segments | Asset Management and other services | Includes the following revenue from contracts with customers for Services transferred over time | |||
Segment reporting | |||
Revenues | 64,473 | 55,321 | 35,065 |
Operating segments | Asset Management and other services | Asset management income | |||
Segment reporting | |||
Revenues | 56,080 | 28,745 | |
Operating segments | Other corporate | |||
Segment reporting | |||
Marketable securities income/(loss) and bank interest | 12,067 | (7,594) | 774 |
Total revenues | 12,067 | (7,594) | 774 |
Operating expenses | 52,333 | 22,223 | 21,488 |
Other expenses | |||
Finance costs | 2,713 | 3,817 | 4,750 |
(Gains)/losses on debt extinguishment | 43 | 134 | |
Foreign currency transactions (gains)/losses | (21,737) | 7,581 | 5,482 |
Total other expenses | (19,024) | 11,441 | 10,366 |
Income/(loss) before income taxes | (21,242) | (41,258) | (31,080) |
Adjustment for third-party interests | |||
Segment reporting | |||
Plus/(Less): Third-party interests in capital provision assets | (279,263) | (494) | 195 |
Marketable securities income/(loss) and bank interest | 141 | (150) | 1,091 |
Total revenues | 110,360 | 68,622 | 25,448 |
Operating expenses | 2,698 | 1,576 | 3,635 |
Other expenses | |||
Finance costs | (1) | ||
Foreign currency transactions (gains)/losses | (15) | 93 | |
Total other expenses | (16) | 93 | |
Income/(loss) before income taxes | 107,678 | 66,953 | 21,813 |
Adjustment for third-party interests | Includes the following revenue from contracts with customers for Services transferred over time | |||
Segment reporting | |||
Revenues | (56,070) | (46,964) | (14,349) |
Adjustment for third-party interests | Capital provision income/(loss) | |||
Segment reporting | |||
Revenues | 445,552 | 116,230 | 38,511 |
Adjustment for third-party interests | Asset management income | |||
Segment reporting | |||
Revenues | $ (46,964) | $ (14,349) | |
Adjustment for third-party interests | Asset Management and other services | |||
Segment reporting | |||
Revenues | $ (56,070) |
Segment reporting - Group's tot
Segment reporting - Group's total assets by reporting segments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Segment reporting | ||
Total assets | $ 5,837,394 | $ 4,288,359 |
Operating segments | Total segments (Burford-only) | ||
Segment reporting | ||
Total assets | 4,215,864 | 3,218,426 |
Operating segments | Capital provision | ||
Segment reporting | ||
Total assets | 4,025,920 | 2,970,841 |
Operating segments | Asset Management and other services | ||
Segment reporting | ||
Total assets | 74,591 | 97,863 |
Operating segments | Other corporate | ||
Segment reporting | ||
Total assets | 115,353 | 149,722 |
Adjustment for third-party interests | ||
Segment reporting | ||
Total assets | $ 1,621,530 | $ 1,069,933 |
Capital provision assets (Detai
Capital provision assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Capital provision assets. | ||
At beginning of period | $ 3,735,556 | $ 3,117,263 |
Deployments | 682,027 | 727,298 |
Realizations | (708,293) | (426,734) |
Income/(loss) for the period | 1,333,262 | 330,811 |
Foreign exchange gains/(losses) | 2,836 | (13,082) |
At end of period | $ 5,045,388 | $ 3,735,556 |
Capital provision assets - Comp
Capital provision assets - Comprised in Direct and Indirect assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Capital provision assets. | ||
Capital provision-direct assets | $ 4,859,879 | $ 3,620,687 |
Capital provision-indirect assets | 185,509 | 114,869 |
Total capital provision assets | 5,045,388 | 3,735,556 |
Unrealized fair value at end of period | $ 2,764,825 | $ 1,689,407 |
Capital provision assets - Capi
Capital provision assets - Capital provision income on the face of the consolidated statement of comprehensive income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Income/(loss) on capital provision assets | $ 1,333,262 | $ 330,811 | |
Total capital provision income as reported in the consolidated statements of operations | 1,341,923 | 319,108 | $ 194,554 |
Unrealized fair value | 2,764,825 | 1,689,407 | |
Capital provision assets | Consolidated total | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Realized gains/(losses) | 251,618 | 161,707 | 153,607 |
Fair value adjustment during the period, net of previously recognized unrealized gains transferred to realized gains | 1,081,644 | 169,104 | 45,804 |
Income/(loss) on capital provision assets | 1,333,262 | 330,811 | 199,411 |
Interest and other income/(loss) | 2,651 | 160 | |
Impairment of other asset | (500) | ||
Foreign exchange gains/(losses) | 8,012 | (6,357) | (4,517) |
Net realized and unrealized loss on due from settlement of capital provision assets | (1) | (11,330) | |
Gains/(losses) on financial liabilities at fair value through profit or loss | 3,333 | ||
Break fee income | 650 | ||
Total capital provision income as reported in the consolidated statements of operations | $ 1,341,923 | $ 319,108 | $ 194,554 |
Due from settlement of capita_3
Due from settlement of capital provision assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Due from settlement of capital provision assets. | ||
At beginning of period | $ 116,582 | $ 86,311 |
Transfer of realizations from capital provision assets | 708,293 | 426,734 |
Interest and other income | 2,651 | |
Proceeds from capital provision assets | (559,362) | (387,786) |
Realized loss | (11,330) | |
Unrealized gain/(loss) on due from settlement of capital provision assets, net of previously recognized unrealized loss transferred to realized loss | 11,329 | (11,330) |
Foreign exchange gains/(losses) | 28 | 2 |
At end of period | 265,540 | 116,582 |
Current assets | 260,370 | 112,832 |
Non-current assets | 5,170 | 3,750 |
Total due from settlement of capital provision assets | $ 265,540 | $ 116,582 |
Asset management income (Detail
Asset management income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Asset management income | |||
Asset management income | |||
Revenues | $ 7,642 | $ 9,116 | $ 14,396 |
Management fee income | |||
Asset management income | |||
Revenues | $ 7,642 | 7,321 | 8,667 |
Performance fee income | |||
Asset management income | |||
Revenues | $ 1,795 | $ 5,729 |
Long term incentive compensat_3
Long term incentive compensation payable (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Long term incentive compensation payable | ||||
At beginning of period | $ 61,769 | $ 48,707 | ||
Long-term incentive compensation including accruals | 110,129 | 14,692 | $ 11,741 | |
Transfer to short-term payable within general expenses payable | (3,656) | (852) | ||
Cash paid | (6,867) | (729) | ||
Foreign exchange gains/(losses) | 943 | (49) | ||
At end of period | $ 162,318 | 162,318 | $ 61,769 | $ 48,707 |
Long term incentive compensation, YPF related assets charge | $ 69,200 | |||
Long term incentive compensation, accruals excluding YPF related assets | $ 16,900 |
Marketable securities (Details)
Marketable securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Marketable securities. | |||
At beginning of period | $ 136,358 | $ 175,336 | |
Purchases | 40,404 | 61,609 | |
Proceeds on disposal | (74,875) | (89,475) | |
Net realized gains/(losses) on disposal | (415) | (1,647) | $ (3,760) |
Fair value movement | 6,185 | (9,682) | 1,919 |
Change in accrued interest | (171) | 593 | |
Foreign exchange gains/(losses) | 75 | (376) | |
At end of period | $ 107,561 | $ 136,358 | $ 175,336 |
Marketable securities - Marketa
Marketable securities - Marketable Securities and Bank Interest (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Marketable securities. | |||
Net realized gains/(losses) on disposal | $ (415) | $ (1,647) | $ (3,760) |
Changes in fair value | 6,185 | (9,682) | 1,919 |
Interest and dividend income | 2,453 | 2,812 | 2,615 |
Bank interest | 3,985 | 773 | 1,091 |
Total marketable securities income/(loss) and bank interest | $ 12,208 | $ (7,744) | $ 1,865 |
Other assets (Details)
Other assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other assets. | ||
Reinsurance assets | $ 15,371 | $ 16,388 |
Right-of-use assets | $ 13,851 | $ 12,716 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Total other assets | Total other assets |
Property and equipment | $ 3,561 | $ 1,313 |
Prepayments | 9,150 | 199 |
Other receivables | 21,531 | 21,240 |
Total other assets | $ 63,464 | $ 51,856 |
Other liabilities (Details)
Other liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other liabilities. | ||
General expenses payable | $ 74,527 | $ 44,714 |
Insurance liabilities | 22,465 | 20,488 |
Lease liabilities | $ 15,853 | $ 14,174 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Total other liabilities | Total other liabilities |
Legacy asset recovery incentive compensation | $ 20,816 | $ 9,643 |
Audit fees payable | 2,163 | 2,324 |
Tax payable | 4,226 | 2,561 |
Payable for capital provision assets | 2,965 | |
Total other liabilities | $ 143,015 | $ 93,904 |
Debt - Schedule of debt (Detail
Debt - Schedule of debt (Details) £ in Thousands, $ in Thousands | Dec. 31, 2023 USD ($) £ / $ | Dec. 31, 2023 GBP (£) £ / $ | Jun. 26, 2023 USD ($) | Dec. 31, 2022 USD ($) £ / $ | May 25, 2022 | Apr. 11, 2022 USD ($) | Apr. 05, 2021 USD ($) | Feb. 12, 2018 USD ($) | Jun. 01, 2017 USD ($) | Apr. 26, 2016 USD ($) |
Debt issued | ||||||||||
Debt payable | $ 1,534,730 | $ 1,252,270 | ||||||||
Currently outstanding | $ 1,563,073 | |||||||||
Exchange rate | £ / $ | 1.2747 | 1.2747 | 1.2039 | |||||||
Debt issued, at fair value* | $ 1,545,991 | $ 1,147,083 | ||||||||
6.500% Bonds due 2022 | Burford Capital Plc | ||||||||||
Debt issued | ||||||||||
Interest rate | 6.50% | |||||||||
6.125% Bonds due 2024 | ||||||||||
Debt issued | ||||||||||
Interest rate | 6.125% | 6.125% | 6.125% | |||||||
6.125% Bonds due 2024 | Burford Capital Plc | ||||||||||
Debt issued | ||||||||||
Principal amount | $ 144,020 | |||||||||
Debt payable | $ 119,993 | |||||||||
Interest rate | 6.125% | 6.125% | 6.125% | |||||||
Debt issued, at fair value* | $ 116,381 | |||||||||
6.125% Bonds due 2025 | ||||||||||
Debt issued | ||||||||||
Interest rate | 6.125% | 6.125% | 6.125% | |||||||
6.125% Bonds due 2025 | Burford Capital Finance Llc | ||||||||||
Debt issued | ||||||||||
Principal amount | $ 180,000 | |||||||||
Debt payable | $ 179,432 | $ 179,080 | ||||||||
Interest rate | 6.125% | 6.125% | 6.125% | |||||||
Currently outstanding | $ 180,000 | £ 180,000 | ||||||||
Debt issued, at fair value* | $ 175,797 | $ 164,594 | ||||||||
5.000% Bonds due 2026 | ||||||||||
Debt issued | ||||||||||
Interest rate | 5% | 5% | ||||||||
5.000% Bonds due 2026 | Burford Capital Plc | ||||||||||
Debt issued | ||||||||||
Principal amount | $ 225,803 | |||||||||
Debt payable | $ 222,117 | $ 209,466 | ||||||||
Interest rate | 5% | 5% | 5% | |||||||
Currently outstanding | $ 223,073 | £ 175,000 | ||||||||
Debt issued, at fair value* | $ 209,048 | $ 186,186 | ||||||||
6.250% Senior Notes due 2028 | ||||||||||
Debt issued | ||||||||||
Interest rate | 6.25% | 6.25% | 6.25% | |||||||
6.250% Senior Notes due 2028 | Burford Capital Global Finance LLC | ||||||||||
Debt issued | ||||||||||
Principal amount | $ 400,000 | |||||||||
Debt payable | $ 394,672 | $ 393,430 | ||||||||
Interest rate | 6.25% | 6.25% | 6.25% | |||||||
Currently outstanding | $ 400,000 | £ 400,000 | ||||||||
Debt issued, at fair value* | $ 384,228 | $ 358,608 | ||||||||
6.875% Senior Notes due 2030 | ||||||||||
Debt issued | ||||||||||
Interest rate | 6.875% | 6.875% | 6.875% | |||||||
6.875% Senior Notes due 2030 | Burford Capital Global Finance LLC | ||||||||||
Debt issued | ||||||||||
Principal amount | $ 360,000 | |||||||||
Debt payable | $ 351,631 | $ 350,301 | ||||||||
Interest rate | 6.875% | 6.875% | 6.875% | 6.875% | ||||||
Currently outstanding | $ 360,000 | £ 360,000 | ||||||||
Debt issued, at fair value* | $ 352,350 | $ 321,314 | ||||||||
9.250% Senior Notes due 2031 | ||||||||||
Debt issued | ||||||||||
Interest rate | 9.25% | 9.25% | 9.25% | |||||||
9.250% Senior Notes due 2031 | Burford Capital Global Finance LLC | ||||||||||
Debt issued | ||||||||||
Principal amount | $ 400,000 | $ 400,000 | ||||||||
Debt payable | $ 386,878 | |||||||||
Interest rate | 9.25% | 9.25% | 9.25% | 9.25% | ||||||
Currently outstanding | $ 400,000 | £ 400,000 | ||||||||
Debt issued, at fair value* | $ 424,568 |
Debt - Changes from cash flows
Debt - Changes from cash flows and non-cash changes of debt issued (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt | |||
At beginning of period | $ 1,269,085 | $ 1,036,475 | |
Debt issued, net of original issue discount | 394,464 | 357,271 | $ 400,000 |
Debt issuance costs | (8,461) | (7,912) | |
Finance costs | 99,135 | 77,389 | 58,647 |
Interest paid | (77,210) | (70,781) | |
Foreign exchange (gain)/loss | 22,103 | (43,446) | |
Debt extinguishment | (129,970) | (79,911) | |
At end of period | 1,569,146 | 1,269,085 | 1,036,475 |
. | |||
Debt payable | 1,534,730 | 1,252,270 | |
Debt interest payable | 34,416 | 16,815 | |
Total debt and interest payable | $ 1,569,146 | $ 1,269,085 | $ 1,036,475 |
Debt - Summary of unamortized i
Debt - Summary of unamortized issuance costs (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
6.125% Bonds due 2024 | ||
Debt Instrument [Line Items] | ||
Unamortized issuance costs | $ 397 | |
Interest rate | 6.125% | 6.125% |
6.125% Bonds due 2025 | ||
Debt Instrument [Line Items] | ||
Unamortized issuance costs | $ 568 | $ 920 |
Interest rate | 6.125% | 6.125% |
5.000% Bonds due 2026 | ||
Debt Instrument [Line Items] | ||
Unamortized issuance costs | $ 956 | $ 1,216 |
Interest rate | 5% | |
6.250% Senior Notes due 2028 | ||
Debt Instrument [Line Items] | ||
Unamortized issuance costs | $ 5,328 | $ 6,570 |
Interest rate | 6.25% | 6.25% |
6.875% Senior Notes due 2030 | ||
Debt Instrument [Line Items] | ||
Unamortized issuance costs | $ 6,223 | $ 7,212 |
Interest rate | 6.875% | 6.875% |
9.250% Senior Notes due 2031 | ||
Debt Instrument [Line Items] | ||
Unamortized issuance costs | $ 7,932 | |
Interest rate | 9.25% | 9.25% |
Debt - Components of total fina
Debt - Components of total finance costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt | |||
Debt interest expense | $ 94,605 | $ 74,116 | $ 56,454 |
Debt issuance costs incurred as finance costs | 4,530 | 3,273 | 2,193 |
Total finance costs | $ 99,135 | $ 77,389 | $ 58,647 |
Debt - Total assets and third-p
Debt - Total assets and third-party indebtedness (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt issued | |||
Total assets | $ 5,837,394 | $ 4,288,359 | |
Indentures governing the 2028 Notes, the 2030 Notes and the 2031 Notes | Company and its Restricted Subsidiaries | |||
Debt issued | |||
Total assets | 4,922,451 | 3,643,013 | |
Third-party indebtedness | 1,534,730 | 1,252,270 | |
Revenues | 973,461 | 245,383 | $ 173,405 |
Indentures governing the 2028 Notes, the 2030 Notes and the 2031 Notes | Unrestricted Subsidiaries | |||
Debt issued | |||
Total assets | 914,943 | 645,346 | |
Revenues | $ 113,441 | $ 73,844 | $ 43,925 |
Debt - Summary of bond issuance
Debt - Summary of bond issuances (Details) $ in Thousands | Jul. 12, 2023 GBP (£) | May 25, 2022 GBP (£) | Dec. 31, 2023 | Jun. 26, 2023 USD ($) | Dec. 31, 2022 | Apr. 11, 2022 USD ($) |
Burford Capital Plc | ||||||
Debt issued | ||||||
Redemption price | 100% | |||||
Debt Instrument Principal Amount Denomination For Redemption | £ | £ 100 | |||||
6.500% Bonds due 2022 | Burford Capital Plc | ||||||
Debt issued | ||||||
Interest rate | 6.50% | |||||
Redemption price | 101.05% | |||||
Debt Instrument Principal Amount Denomination For Redemption | £ | £ 100 | |||||
6.875% Senior Notes due 2030 | ||||||
Debt issued | ||||||
Interest rate | 6.875% | 6.875% | ||||
6.875% Senior Notes due 2030 | Burford Capital Global Finance LLC | ||||||
Debt issued | ||||||
Principal amount | $ | $ 360,000 | |||||
Interest rate | 6.875% | 6.875% | 6.875% | |||
9.250% Senior Notes due 2031 | ||||||
Debt issued | ||||||
Interest rate | 9.25% | 9.25% | ||||
9.250% Senior Notes due 2031 | Burford Capital Global Finance LLC | ||||||
Debt issued | ||||||
Principal amount | $ | $ 400,000 | $ 400,000 | ||||
Interest rate | 9.25% | 9.25% | 9.25% |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill | ||
Goodwill, beginning balance | $ 133,912 | $ 134,019 |
Foreign exchange gain/(loss) | 53 | (107) |
Goodwill, ending balance | 133,965 | 133,912 |
BCIM Holdings LLC | ||
Goodwill | ||
Goodwill impairment | 0 | 0 |
Capital provision | BCIM Holdings LLC | ||
Goodwill | ||
Goodwill, beginning balance | 107,991 | 107,991 |
Goodwill, ending balance | 107,991 | 107,991 |
Asset management and other services | BCIM Holdings LLC | ||
Goodwill | ||
Goodwill, beginning balance | 25,020 | 25,020 |
Goodwill, ending balance | 25,020 | 25,020 |
Other corporate | BCIM Holdings LLC | ||
Goodwill | ||
Goodwill, beginning balance | 901 | 1,008 |
Foreign exchange gain/(loss) | 53 | (107) |
Goodwill, ending balance | $ 954 | $ 901 |
Fair value of assets and liab_3
Fair value of assets and liabilities (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Marketable securities | $ 107,561 | $ 136,358 | $ 175,336 |
Due from settlement of capital provision assets | 265,540 | 116,582 | |
Total assets | 5,418,489 | 3,988,496 | |
Financial liabilities for third party interests in capital provision assets | 704,196 | 425,205 | |
Total liabilities | 704,196 | 425,205 | |
Net total | $ 4,714,293 | 3,563,291 | |
Number of litigation events | item | 70 | ||
Number of litigation types | item | 5 | ||
Percentage of discrete objective litigation events | 10% | ||
Complex strategies (Strategic Value Fund) | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Equity securities, Fair value | 12,657 | ||
Core legal finance (BOF-C) | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Equity securities, Fair value | $ 715,006 | 536,575 | |
Lower risk legal finance (Advantage Fund) | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Equity securities, Fair value | 185,509 | 100,596 | |
Foreign Government Bonds | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Marketable securities | 22,337 | 17,493 | |
Asset-backed Securities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Marketable securities | 20,047 | 32,933 | |
Corporate Bonds | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Marketable securities | 53,001 | 79,899 | |
Mutual Funds | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Marketable securities | 6,529 | 6,033 | |
Commercial Deposit | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total assets | 5,647 | ||
Derivative financial instrument | Single case | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Capital provision assets, Fair value | 934,131 | 792,745 | |
Derivative financial instrument | Portfolio | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Capital provision assets, Fair value | 2,875,881 | 2,022,406 | |
Derivative financial instrument | Portfolio with equity risk | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Capital provision assets, Fair value | 142,659 | 99,406 | |
Derivative financial instrument | Legal Risk Management | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Capital provision assets, Fair value | 3,523 | 3,201 | |
Non-derivative/Financial asset | Single case with equity risk | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Capital provision assets, Fair value | 10,051 | 8,745 | |
Non-derivative/Financial asset | Joint Ventures and Equity Method Investments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Capital provision assets, Fair value | 178,628 | 159,225 | |
Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total assets | 40,145 | 39,584 | |
Net total | 40,145 | 39,584 | |
Level 1 | Core legal finance (BOF-C) | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Equity securities, Fair value | 9,914 | 10,000 | |
Level 1 | Foreign Government Bonds | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Marketable securities | 8,004 | 14,806 | |
Level 1 | Mutual Funds | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Marketable securities | 6,529 | 6,033 | |
Level 1 | Commercial Deposit | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total assets | 5,647 | ||
Level 1 | Non-derivative/Financial asset | Single case with equity risk | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Capital provision assets, Fair value | 10,051 | 8,745 | |
Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total assets | 87,381 | 115,519 | |
Net total | 87,381 | 115,519 | |
Level 2 | Foreign Government Bonds | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Marketable securities | 14,333 | 2,687 | |
Level 2 | Asset-backed Securities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Marketable securities | 20,047 | 32,933 | |
Level 2 | Corporate Bonds | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Marketable securities | 53,001 | 79,899 | |
Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Due from settlement of capital provision assets | 265,540 | 116,582 | |
Total assets | 5,290,963 | 3,833,393 | |
Financial liabilities for third party interests in capital provision assets | 704,196 | 425,205 | |
Total liabilities | 704,196 | 425,205 | |
Net total | 4,586,767 | 3,408,188 | |
Level 3 | Complex strategies (Strategic Value Fund) | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Equity securities, Fair value | 12,657 | ||
Level 3 | Core legal finance (BOF-C) | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Equity securities, Fair value | 705,092 | 526,575 | |
Level 3 | Lower risk legal finance (Advantage Fund) | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Equity securities, Fair value | 185,509 | 100,596 | |
Level 3 | Derivative financial instrument | Single case | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Capital provision assets, Fair value | 934,131 | 792,745 | |
Level 3 | Derivative financial instrument | Portfolio | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Capital provision assets, Fair value | 2,875,881 | 2,022,406 | |
Level 3 | Derivative financial instrument | Portfolio with equity risk | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Capital provision assets, Fair value | 142,659 | 99,406 | |
Level 3 | Derivative financial instrument | Legal Risk Management | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Capital provision assets, Fair value | 3,523 | 3,201 | |
Level 3 | Non-derivative/Financial asset | Joint Ventures and Equity Method Investments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Capital provision assets, Fair value | $ 178,628 | $ 159,225 |
Fair value of assets and liab_4
Fair value of assets and liabilities - Movements in Level 3 financial assets and liabilities (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Balance beginning of the period, Assets | $ 3,833,393,000 | $ 3,203,574,000 |
Transfers into Level 3 | 0 | 0 |
Deployments | 1,390,320,000 | 1,123,577,000 |
Realizations | (1,267,655,000) | (814,520,000) |
Income for the period | $ 1,332,608,000 | $ 331,967,000 |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Income Expense Relating to Third Party Interests in Capital Provision Assets | Income Expense Relating to Third Party Interests in Capital Provision Assets |
Foreign exchange gains/(losses) | $ 2,297,000 | $ (11,205,000) |
Balance ending of the period, Assets | 5,290,963,000 | 3,833,393,000 |
Balance beginning of the period, Liabilities | 425,205,000 | 424,733,000 |
Deployments | 230,000 | 29,000 |
Realizations | (502,000) | (52,000) |
Income for the period | $ (279,263,000) | 495,000 |
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Income Expense Relating to Third Party Interests in Capital Provision Assets | |
Balance ending of the period, Liabilities | $ 704,196,000 | 425,205,000 |
Single case | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Balance beginning of the period, Assets | 792,745,000 | 655,674,000 |
Transfers between types | (403,000) | (1,916,000) |
Deployments | 111,958,000 | 161,785,000 |
Realizations | (184,998,000) | (45,371,000) |
Income for the period | 215,707,000 | 28,243,000 |
Foreign exchange gains/(losses) | (878,000) | (5,670,000) |
Balance ending of the period, Assets | 934,131,000 | 792,745,000 |
Portfolio | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Balance beginning of the period, Assets | 2,022,406,000 | 1,752,137,000 |
Transfers between types | 403,000 | 1,916,000 |
Deployments | 261,853,000 | 272,796,000 |
Realizations | (301,610,000) | (138,277,000) |
Income for the period | 893,113,000 | 135,962,000 |
Foreign exchange gains/(losses) | (284,000) | (2,128,000) |
Balance ending of the period, Assets | 2,875,881,000 | 2,022,406,000 |
Portfolio with equity risk | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Balance beginning of the period, Assets | 99,406,000 | 200,484,000 |
Deployments | 361,000 | 366,000 |
Realizations | (157,191,000) | |
Income for the period | 42,892,000 | 55,747,000 |
Balance ending of the period, Assets | 142,659,000 | 99,406,000 |
Legal Risk Management | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Balance beginning of the period, Assets | 3,201,000 | 2,567,000 |
Deployments | 130,000 | |
Realizations | (944,000) | |
Income for the period | 115,000 | 718,000 |
Foreign exchange gains/(losses) | 1,151,000 | (214,000) |
Balance ending of the period, Assets | 3,523,000 | 3,201,000 |
Joint Ventures and Equity Method Investments [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Balance beginning of the period, Assets | 159,225,000 | 162,103,000 |
Deployments | 5,556,000 | 7,864,000 |
Realizations | (10,440,000) | (5,916,000) |
Income for the period | 22,007,000 | (1,627,000) |
Foreign exchange gains/(losses) | 2,280,000 | (3,199,000) |
Balance ending of the period, Assets | 178,628,000 | 159,225,000 |
Complex strategies (Strategic Value Fund) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Balance beginning of the period, Assets | 12,657,000 | 12,855,000 |
Realizations | (15,000,000) | (1,663,000) |
Income for the period | 2,343,000 | 1,465,000 |
Balance ending of the period, Assets | 12,657,000 | |
Litigation finance (BOF-C) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Balance beginning of the period, Assets | 526,575,000 | 329,360,000 |
Deployments | 126,164,000 | 132,006,000 |
Realizations | (66,499,000) | (53,358,000) |
Income for the period | 118,852,000 | 118,563,000 |
Foreign exchange gains/(losses) | 4,000 | |
Balance ending of the period, Assets | 705,092,000 | 526,575,000 |
Litigation finance (Advantage fund) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Balance beginning of the period, Assets | 100,596,000 | |
Deployments | 176,135,000 | 121,896,000 |
Realizations | (128,802,000) | (22,875,000) |
Income for the period | 37,580,000 | 1,575,000 |
Balance ending of the period, Assets | 185,509,000 | 100,596,000 |
Other | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Balance beginning of the period, Assets | 2,083,000 | |
Realizations | (2,083,000) | |
Capital Provision Assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Balance beginning of the period, Assets | 3,716,811,000 | 3,117,263,000 |
Deployments | 682,027,000 | 696,843,000 |
Realizations | (708,293,000) | (426,734,000) |
Income for the period | 1,332,609,000 | 340,646,000 |
Foreign exchange gains/(losses) | 2,269,000 | (11,207,000) |
Balance ending of the period, Assets | 5,025,423,000 | 3,716,811,000 |
Due from settlement of capital provision assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Balance beginning of the period, Assets | 116,582,000 | 86,311,000 |
Deployments | 708,293,000 | 426,734,000 |
Realizations | (559,362,000) | (387,786,000) |
Income for the period | (1,000) | (8,679,000) |
Foreign exchange gains/(losses) | 28,000 | 2,000 |
Balance ending of the period, Assets | 265,540,000 | 116,582,000 |
Financial liability related to third party interest | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Balance beginning of the period, Liabilities | 425,205,000 | 424,733,000 |
Deployments | 230,000 | 29,000 |
Realizations | (502,000) | (52,000) |
Income for the period | (279,263,000) | 495,000 |
Balance ending of the period, Liabilities | $ 704,196,000 | $ 425,205,000 |
Fair value of assets and liab_5
Fair value of assets and liabilities - Sensitivity of Level 3 valuations (Details) | 12 Months Ended | |
Dec. 31, 2023 USD ($) Y | Dec. 31, 2022 USD ($) Y | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset (liability) fair value | $ 4,714,293,000 | $ 3,563,291,000 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset (liability) cost | 2,497,151,000 | 2,124,106,000 |
Asset (Liability) unrealized | 2,089,616,000 | 1,284,082,000 |
Asset (liability) fair value | 4,586,767,000 | 3,408,188,000 |
Level 3 | Discount rate | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity Securities, Cost | 123,069,000 | 123,069,000 |
Equity securities, Unrealized | 44,285,000 | (6,310,000) |
Equity securities, Fair value | $ 167,354,000 | $ 116,759,000 |
Level 3 | Discount rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | 0.053 | 0.058 |
Equity securities, Measurement input | 0.150 | 0.165 |
Level 3 | Discount rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | 0.073 | 0.079 |
Equity securities, Measurement input | 0.150 | 0.165 |
Level 3 | Discount rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | 0.070 | 0.073 |
Equity securities, Measurement input | 0.150 | 0.165 |
Level 3 | Duration (years) | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | Y | 0.5 | 0.2 |
Level 3 | Duration (years) | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | Y | 7.2 | 8.2 |
Level 3 | Duration (years) | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | Y | 3.4 | 3.4 |
Level 3 | Adjusted risk premium | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | 0 | 0 |
Level 3 | Adjusted risk premium | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | 1 | 94.2 |
Level 3 | Adjusted risk premium | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | 0.302 | 0.381 |
Capital Provision Assets | Level 3 | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Cost | $ 1,944,283,000 | $ 1,761,638,000 |
Capital provision assets, Unrealized | 2,024,081,000 | 1,299,956,000 |
Capital provision assets, Fair value | 3,968,364,000 | 3,061,594,000 |
Capital Provision Assets | Level 3 | No case milestone | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Cost | 865,568,000 | 941,340,000 |
Capital provision assets, Unrealized | 55,868,000 | 14,382,000 |
Capital provision assets, Fair value | 921,436,000 | 955,722,000 |
Capital Provision Assets | Level 3 | YPF-related assets | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Cost | 60,338,000 | 54,625,000 |
Capital provision assets, Unrealized | 1,311,319,000 | 768,410,000 |
Capital provision assets, Fair value | 1,371,657,000 | 823,035,000 |
Capital Provision Assets | Level 3 | Significant ruling or other objective event prior to trial court judgement | Positive fair value adjustments | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Cost | 81,244,000 | 58,724,000 |
Capital provision assets, Unrealized | 50,667,000 | 71,469,000 |
Capital provision assets, Fair value | $ 131,911,000 | $ 130,193,000 |
Capital Provision Assets | Level 3 | Significant ruling or other objective event prior to trial court judgement | Positive fair value adjustments | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | 0.05 | 0.05 |
Capital Provision Assets | Level 3 | Significant ruling or other objective event prior to trial court judgement | Positive fair value adjustments | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | 0.40 | 0.40 |
Capital Provision Assets | Level 3 | Significant ruling or other objective event prior to trial court judgement | Positive fair value adjustments | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | 0.23 | 0.20 |
Capital Provision Assets | Level 3 | Significant ruling or other objective event prior to trial court judgement | Negative fair value adjustments | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Cost | $ 34,305,000 | $ 20,259,000 |
Capital provision assets, Unrealized | (28,057,000) | (14,873,000) |
Capital provision assets, Fair value | $ 6,248,000 | $ 5,386,000 |
Capital Provision Assets | Level 3 | Significant ruling or other objective event prior to trial court judgement | Negative fair value adjustments | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | (0.10) | (0.10) |
Capital Provision Assets | Level 3 | Significant ruling or other objective event prior to trial court judgement | Negative fair value adjustments | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | (0.60) | (0.60) |
Capital Provision Assets | Level 3 | Significant ruling or other objective event prior to trial court judgement | Negative fair value adjustments | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | (0.43) | (0.13) |
Capital Provision Assets | Level 3 | Trial court judgement or tribunal award | Positive fair value adjustments | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Cost | $ 130,529,000 | $ 116,692,000 |
Capital provision assets, Unrealized | 61,175,000 | 97,642,000 |
Capital provision assets, Fair value | $ 191,704,000 | $ 214,334,000 |
Capital Provision Assets | Level 3 | Trial court judgement or tribunal award | Positive fair value adjustments | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | 0.25 | 0.04 |
Capital Provision Assets | Level 3 | Trial court judgement or tribunal award | Positive fair value adjustments | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | 0.60 | 0.60 |
Capital Provision Assets | Level 3 | Trial court judgement or tribunal award | Positive fair value adjustments | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | 0.54 | 0.53 |
Capital Provision Assets | Level 3 | Trial court judgement or tribunal award | Negative fair value adjustments | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Cost | $ 41,950,000 | $ 13,201,000 |
Capital provision assets, Unrealized | (23,577,000) | (3,962,000) |
Capital provision assets, Fair value | $ 18,373,000 | $ 9,239,000 |
Capital Provision Assets | Level 3 | Trial court judgement or tribunal award | Negative fair value adjustments | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | (0.10) | (0.55) |
Capital Provision Assets | Level 3 | Trial court judgement or tribunal award | Negative fair value adjustments | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | (0.60) | (0.60) |
Capital Provision Assets | Level 3 | Trial court judgement or tribunal award | Negative fair value adjustments | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | (0.59) | (0.56) |
Capital Provision Assets | Level 3 | Appeal judgement | Positive fair value adjustments | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Cost | $ 60,402,000 | $ 90,045,000 |
Capital provision assets, Unrealized | 57,472,000 | 88,018,000 |
Capital provision assets, Fair value | $ 117,874,000 | $ 178,063,000 |
Capital Provision Assets | Level 3 | Appeal judgement | Positive fair value adjustments | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | 0.71 | 0.60 |
Capital Provision Assets | Level 3 | Appeal judgement | Positive fair value adjustments | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | 0.80 | 0.80 |
Capital Provision Assets | Level 3 | Appeal judgement | Positive fair value adjustments | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | 0.72 | 0.67 |
Capital Provision Assets | Level 3 | Appeal judgement | Negative fair value adjustments | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Cost | $ 7,989,000 | $ 14,431,000 |
Capital provision assets, Unrealized | $ (7,989,000) | (13,860,000) |
Capital provision assets, Fair value | $ 571,000 | |
Capital Provision Assets | Level 3 | Appeal judgement | Negative fair value adjustments | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | (1) | (0.80) |
Capital Provision Assets | Level 3 | Appeal judgement | Negative fair value adjustments | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | (1) | (0.80) |
Capital Provision Assets | Level 3 | Appeal judgement | Negative fair value adjustments | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | (1) | (0.80) |
Capital Provision Assets | Level 3 | Asset Freeze | Positive fair value adjustments | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Cost | $ 16,621,000 | $ 16,621,000 |
Capital provision assets, Unrealized | 10,528,000 | 8,598,000 |
Capital provision assets, Fair value | $ 27,149,000 | $ 25,219,000 |
Capital Provision Assets | Level 3 | Asset Freeze | Positive fair value adjustments | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | 0.20 | 0.20 |
Capital Provision Assets | Level 3 | Asset Freeze | Positive fair value adjustments | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | 0.20 | 0.20 |
Capital Provision Assets | Level 3 | Asset Freeze | Positive fair value adjustments | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | 0.20 | 0.20 |
Capital Provision Assets | Level 3 | Exhaustion of as-of-right appeals | Positive fair value adjustments | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Cost | $ 34,318,000 | |
Capital provision assets, Unrealized | 61,828,000 | |
Capital provision assets, Fair value | $ 96,146,000 | |
Capital Provision Assets | Level 3 | Exhaustion of as-of-right appeals | Positive fair value adjustments | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | 0.80 | |
Capital Provision Assets | Level 3 | Exhaustion of as-of-right appeals | Positive fair value adjustments | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | 0.80 | |
Capital Provision Assets | Level 3 | Exhaustion of as-of-right appeals | Positive fair value adjustments | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | 0.80 | |
Capital Provision Assets | Level 3 | Exhaustion of All Appeals | Positive fair value adjustments | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Cost | $ 76,872,000 | |
Capital provision assets, Unrealized | 66,039,000 | |
Capital provision assets, Fair value | $ 142,911,000 | |
Capital Provision Assets | Level 3 | Exhaustion of All Appeals | Positive fair value adjustments | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | 1 | |
Capital Provision Assets | Level 3 | Exhaustion of All Appeals | Positive fair value adjustments | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | 1 | |
Capital Provision Assets | Level 3 | Exhaustion of All Appeals | Positive fair value adjustments | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | 1 | |
Capital Provision Assets | Level 3 | Settlement | Positive fair value adjustments | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Cost | $ 5,877,000 | $ 52,812,000 |
Capital provision assets, Unrealized | 17,380,000 | 44,384,000 |
Capital provision assets, Fair value | $ 23,257,000 | $ 97,196,000 |
Capital Provision Assets | Level 3 | Settlement | Positive fair value adjustments | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | 0.40 | 0.40 |
Capital Provision Assets | Level 3 | Settlement | Positive fair value adjustments | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | 0.80 | 0.80 |
Capital Provision Assets | Level 3 | Settlement | Positive fair value adjustments | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | 0.49 | 0.76 |
Capital Provision Assets | Level 3 | Portfolios with multiple factors | Positive fair value adjustments | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Cost | $ 498,296,000 | $ 380,101,000 |
Capital provision assets, Unrealized | 405,078,000 | 240,929,000 |
Capital provision assets, Fair value | $ 903,374,000 | $ 621,030,000 |
Capital Provision Assets | Level 3 | Portfolios with multiple factors | Positive fair value adjustments | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | 0.01 | 0.01 |
Capital Provision Assets | Level 3 | Portfolios with multiple factors | Positive fair value adjustments | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | 1 | 1 |
Capital Provision Assets | Level 3 | Portfolios with multiple factors | Positive fair value adjustments | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | 0.22 | 0.14 |
Capital Provision Assets | Level 3 | Portfolios with multiple factors | Negative fair value adjustments | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Cost | $ 29,636,000 | $ 2,450,000 |
Capital provision assets, Unrealized | (13,479,000) | (999,000) |
Capital provision assets, Fair value | $ 16,157,000 | $ 1,451,000 |
Capital Provision Assets | Level 3 | Portfolios with multiple factors | Negative fair value adjustments | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | (0.13) | (0.50) |
Capital Provision Assets | Level 3 | Portfolios with multiple factors | Negative fair value adjustments | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | (0.60) | (0.50) |
Capital Provision Assets | Level 3 | Portfolios with multiple factors | Negative fair value adjustments | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | (0.43) | (0.50) |
Capital Provision Assets | Level 3 | Other | Positive fair value adjustments | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Cost | $ 338,000 | $ 337,000 |
Capital provision assets, Unrealized | (171,000) | (182,000) |
Capital provision assets, Fair value | $ 167,000 | $ 155,000 |
Capital Provision Assets | Level 3 | Other | Positive fair value adjustments | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | 1 | 1 |
Capital Provision Assets | Level 3 | Other | Positive fair value adjustments | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | 1 | 1 |
Capital Provision Assets | Level 3 | Other | Positive fair value adjustments | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital provision assets, Measurement input | 1 | 1 |
Portfolio with equity risk | Level 3 | Resolution timing | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, Measurement input | Y | 0.8 | 1.8 |
Portfolio with equity risk | Level 3 | Resolution timing | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, Measurement input | Y | 4.8 | 3.8 |
Portfolio with equity risk | Level 3 | Resolution timing | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, Measurement input | Y | 1.7 | 2.8 |
Portfolio with equity risk | Level 3 | Conversion ratio | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, Measurement input | 0.026 | 2.6 |
Portfolio with equity risk | Level 3 | Conversion ratio | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, Measurement input | 0.026 | 0.026 |
Portfolio with equity risk | Level 3 | Conversion ratio | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, Measurement input | 0.026 | 0.026 |
Due from settlement of capital provision assets | Level 3 | Measurement Input, Collection Risk [Member] | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity Securities, Cost | $ 265,540,000 | $ 127,912,000 |
Equity securities, Unrealized | (11,330,000) | |
Equity securities, Fair value | $ 265,540,000 | $ 116,582,000 |
Due from settlement of capital provision assets | Level 3 | Measurement Input, Collection Risk [Member] | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, Measurement input | 0 | 0 |
Due from settlement of capital provision assets | Level 3 | Measurement Input, Collection Risk [Member] | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, Measurement input | 1 | 1 |
Due from settlement of capital provision assets | Level 3 | Measurement Input, Collection Risk [Member] | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, Measurement input | 0 | 0 |
Complex strategies (Strategic Value Fund) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, Fair value | $ 12,657,000 | |
Complex strategies (Strategic Value Fund) | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, Fair value | 12,657,000 | |
Complex strategies (Strategic Value Fund) | Level 3 | Other | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity Securities, Cost | 11,156,000 | |
Equity securities, Unrealized | 1,501,000 | |
Equity securities, Fair value | 12,657,000 | |
Litigation finance (Advantage fund) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, Fair value | $ 185,509,000 | 100,596,000 |
Litigation finance (Advantage fund) | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, Fair value | 185,509,000 | 100,596,000 |
Litigation finance (Advantage fund) | Level 3 | Discount rate | Discounted cash flow | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity Securities, Cost | 164,259,000 | 100,331,000 |
Equity securities, Unrealized | 21,250,000 | 265,000 |
Equity securities, Fair value | $ 185,509,000 | $ 100,596,000 |
Litigation finance (Advantage fund) | Level 3 | Discount rate | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, Measurement input | 0.124 | 0.125 |
Litigation finance (Advantage fund) | Level 3 | Discount rate | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, Measurement input | 0.214 | 0.215 |
Litigation finance (Advantage fund) | Level 3 | Discount rate | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, Measurement input | 0.175 | 0.167 |
Litigation finance (Advantage fund) | Level 3 | Duration (years) | Discounted cash flow | Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, Measurement input | Y | 1 | 0.7 |
Litigation finance (Advantage fund) | Level 3 | Duration (years) | Discounted cash flow | Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, Measurement input | Y | 2.7 | 0.037 |
Litigation finance (Advantage fund) | Level 3 | Duration (years) | Discounted cash flow | Weighted Average | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities, Measurement input | Y | 1.9 | 2.5 |
Fair value of assets and liab_6
Fair value of assets and liabilities - Capital Provision Direct and Indirect Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Decrease In Income And Net Assets Due To Increase In Interest Rate | $ (458,700) | $ (340,800) |
Increase In Income And Net Assets Due To Decrease In Interest Rate | $ 458,700 | $ 340,800 |
Interest rate 100bps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Increase in interest rate (percent) | 1% | 1% |
Decrease In Income And Net Assets Due To Increase In Interest Rate | $ (161,110) | $ (116,874) |
Decrease in interest rate (percent) | 1% | 1% |
Increase In Income And Net Assets Due To Decrease In Interest Rate | $ 167,944 | $ 130,076 |
Interest rate 50bps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Increase in interest rate (percent) | 0.50% | 0.50% |
Decrease In Income And Net Assets Due To Increase In Interest Rate | $ (81,745) | $ (59,527) |
Decrease in interest rate (percent) | 0.50% | 0.50% |
Increase In Income And Net Assets Due To Decrease In Interest Rate | $ 82,724 | $ 59,212 |
Fair value of assets and liab_7
Fair value of assets and liabilities - Schedule of increase (decrease) in consolidated income and net assets due change in actual interest rates (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
6 months duration | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Increase in expected timing of a favorable outcome | 6 months | 6 months |
Decrease in consolidated income and net assets due to increase in expected timing of a favorable outcome | $ (188,718) | $ (130,086) |
Decrease in expected timing of a favorable outcome | 6 months | 6 months |
Increase in consolidated income and net assets due to decrease in expected timing of a favorable outcome | $ 203,442 | $ 133,950 |
12 months duration | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Increase in expected timing of a favorable outcome | 12 months | 12 months |
Decrease in consolidated income and net assets due to increase in expected timing of a favorable outcome | $ (363,901) | $ (250,428) |
Decrease in expected timing of a favorable outcome | 12 months | 12 months |
Increase in consolidated income and net assets due to decrease in expected timing of a favorable outcome | $ 393,248 | $ 277,833 |
Variable interest entities - As
Variable interest entities - Assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Variable interest entities | ||
Total assets | $ 5,837,394 | $ 4,288,359 |
Total liabilities | (2,629,614) | (1,901,289) |
VIE primary beneficiary | ||
Variable interest entities | ||
Total assets | 1,865,344 | 1,259,892 |
Total liabilities | $ (4,716) | $ (5,210) |
Variable interest entities - In
Variable interest entities - Income, proceeds, funding and cash balances (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Variable interest entities | |||
Cash balance at period end | $ 220,549 | $ 107,658 | |
VIE primary beneficiary | |||
Variable interest entities | |||
Total revenue: | 470,216 | 73,480 | $ 26,158 |
Proceeds | 150,775 | 92,080 | 139,825 |
(Funding) | (304,348) | (291,046) | (224,893) |
Cash balance at period end | $ 24,613 | $ 32,966 | $ 40,547 |
Variable Interest Entities - Sc
Variable Interest Entities - Schedule of unconsolidated variable interest entities (Details) - VIE not primary beneficiary - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Variable interest entities | ||
On-balance sheet exposure | $ 22,426 | $ 16,724 |
Off-balance sheet exposure - undrawn commitments | 2,768 | 3,791 |
Maximum exposure to loss | $ 25,194 | $ 20,515 |
Variable interest entities - Ad
Variable interest entities - Additional information (Details) | 12 Months Ended | |
Dec. 31, 2023 USD ($) lawsuit | Dec. 31, 2022 USD ($) | |
Variable interest entities | ||
Number of underlying litigation matters | lawsuit | 2 | |
Line of credit | $ | $ 0 | $ 0 |
Joint ventures and equity met_3
Joint ventures and equity method investments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Joint ventures and equity method investments | ||
Interest in joint ventures | $ 172,958 | $ 174,337 |
Interest in equity method investments | $ 468 | $ 1,359 |
Joint ventures and equity met_4
Joint ventures and equity method investments - Group's commitments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Joint ventures and equity method investments | ||
Commitments for joint ventures | $ 139,753 | $ 146,275 |
Commitments for equity method investments | $ 15,513 | $ 14,651 |
Shareholders' equity - Sharehol
Shareholders' equity - Shareholder rights (Details) | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2016 USD ($) | Dec. 31, 2023 USD ($) Vote $ / shares shares | Dec. 31, 2023 $ / shares £ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2022 £ / shares $ / shares shares | Dec. 31, 2021 $ / shares | |
Shareholders' equity | ||||||
Common stock voting rights | Vote | 1 | |||||
Dividend forfeiture period | 12 years | |||||
Dividend | $ / shares | $ 12.50 | $ 12.50 | $ 12.50 | $ 12.50 | $ 12.50 | |
Gain or loss recognized on purchase, sale, cancellation or issue of ordinary shares held in Burford Capital Employee Benefit Trust | $ 0 | |||||
Ordinary shares purchased on open market | shares | 261,000 | 468,000 | ||||
Treasury shares (cost per share) | (per share) | $ 14.40 | $ 11.82 | $ 8.01 | $ 6.33 | ||
Amount of increase in treasury balance | $ 3,759,000 | $ 3,749,000 | ||||
Common Stock, Shares Issued | shares | 219,313,388 | 219,313,388 | 219,049,877 | 219,049,877 | ||
BCIM Holdings LLC | ||||||
Shareholders' equity | ||||||
Shares to be issued as consideration | $ 2,461,682 | |||||
Threshold limit of performance fee income | $ 100,000,000 | |||||
First half | ||||||
Shareholders' equity | ||||||
Dividend | $ / shares | $ 6.25 | $ 6.25 | $ 6.25 | $ 6.25 | 6.25 | |
Second half | ||||||
Shareholders' equity | ||||||
Dividend | $ / shares | $ 6.25 | $ 6.25 | $ 6.25 | $ 6.25 | $ 6.25 |
Share-based compensation (Detai
Share-based compensation (Details) - shares | 12 Months Ended | 96 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2016 | Dec. 31, 2023 | |
Share-based compensation | ||||
Ordinary shares purchased on open market | 261,000 | 468,000 | ||
LTIP | ||||
Share-based compensation | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Percentage of Outstanding Stock Maximum | 10% | |||
Number of shares available for grant | 14,400,000 | 14,400,000 | ||
LTIP | RSU | ||||
Share-based compensation | ||||
RSUs issued and outstanding ratio | 3.70% | |||
Percentage of awards issued | 50% | |||
Ordinary shares purchased on open market | 261,000 | |||
Shares issued under plan | 8,200,000 |
Share-based compensation - Summ
Share-based compensation - Summarized activity related to RSUs' activity (Details) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2023 USD ($) £ / shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) £ / shares | Dec. 31, 2021 USD ($) | Dec. 31, 2021 USD ($) £ / shares | |
Weighted-average grant date fair value per share | ||||||
Granted, Weighted-average grant date fair value per share | £ / shares | £ 8.74 | |||||
LTIP | RSU | ||||||
Shares | ||||||
Unvested award, beginning balance, Shares | 4,707 | |||||
Granted, Shares | 1,727 | |||||
Vested, Shares | (1,654) | |||||
Forfeited, Shares | (108) | |||||
Unvested award, ending balance, Shares | 4,672 | 4,707 | ||||
Weighted-average grant date fair value per share | ||||||
Unvested award, beginning balance, Weighted-average grant date fair value per share | $ / shares | $ 7.15 | |||||
Granted, Weighted-average grant date fair value per share | (per share) | 6.89 | £ 6.89 | £ 8.90 | |||
Vested, Weighted-average grant date fair value per share | $ / shares | 4.15 | |||||
Forfeited, Weighted-average grant date fair value per share | $ / shares | 8.43 | |||||
Unvested award, ending balance, Weighted-average grant date fair value per share | $ / shares | $ 8.09 | $ 7.15 | ||||
Aggregate grant date fair value | $ | $ 11.9 | $ 12.2 | $ 16.6 | |||
Weighted-average remaining contractual term | 1 year 3 months 18 days | |||||
Compensation cost not yet recognized | $ | 15.4 | £ 15.4 | $ 16.5 | £ 16.5 | 18.8 | £ 18.8 |
Fair value of RSU vested during the years | $ | $ 6.9 | $ 9.9 | $ 2.5 |
Share-based compensation - Fair
Share-based compensation - Fair value assumptions (Details) - LTIP - RSU - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based compensation | |||
Dividend yield (%) | 0.72% | 0.72% | 0.48% |
Expected volatility (%) | 46.70% | 52.90% | 54.70% |
Risk-free interest rate (%) | 3.67% | 2.65% | 0.34% |
Expected term (years) | 3 years | 3 years | 3 years |
Weighted average fair value per ordinary share ($) | 6.89% | 8.90% | 8.74% |
Weighted average price per ordinary share ($) | $ 7.19 | $ 9.37 | $ 9.10 |
Share-based compensation - Defe
Share-based compensation - Deferred Compensation Plan (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 £ / shares | |
Deferred Compensation Arrangement with Individual, Share-Based Payments [Line Items] | |||
Granted, Weighted-average grant date fair value per share | £ / shares | £ 8.74 | ||
Deferred Compensation Plan | |||
Deferred Compensation Arrangement with Individual, Share-Based Payments [Line Items] | |||
Deferral service period | 2 years | ||
Number of unvested ordinary shares granted | shares | 77,281 | 146,455 | |
Granted, Weighted-average grant date fair value per share | $ / shares | $ 13.14 | $ 9.31 | |
Remaining contractual term of unvested awards | 9 months 18 days | 1 year 3 months 18 days | |
Compensation cost not yet recognized | $ 1 | $ 0.9 | |
Deferred compensation outstanding liability | $ 19.4 | $ 9.1 | |
Deferred Compensation Plan | RSU | |||
Deferred Compensation Arrangement with Individual, Share-Based Payments [Line Items] | |||
Deferral period | 5 years | ||
Deferred Compensation Plan | Minimum | |||
Deferred Compensation Arrangement with Individual, Share-Based Payments [Line Items] | |||
Deferral period | 3 years |
Earnings per ordinary share (De
Earnings per ordinary share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings per ordinary share | |||
Net income/(loss) attributable to Burford Capital Limited shareholders | $ 610,522 | $ 30,506 | $ (28,751) |
Net income/(loss) attributable to Burford Capital Limited shareholders per ordinary share: | |||
Basic | $ 2.79 | $ 0.14 | $ (0.13) |
Diluted | $ 2.74 | $ 0.14 | $ (0.13) |
Weighted average ordinary shares outstanding | |||
Basic | 218,865,816 | 218,757,232 | 219,049,877 |
Dilutive effect of share-based awards | 4,149,074 | 3,045,254 | |
Diluted | 223,014,890 | 221,802,486 | 219,049,877 |
Potential ordinary shares excluded from diluted weighted average ordinary shares | 17,631 | 88,330 | 1,959,222 |
Financial commitments and con_3
Financial commitments and contingent liabilities - Maturity Profile (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Future lease payments | |||
2024 | $ 2,482 | ||
2025 | 2,732 | ||
2026 | 2,748 | ||
2027 | 2,755 | ||
2028 | 2,763 | ||
Thereafter | 6,951 | ||
Total undiscounted cash flows | 20,431 | ||
Lease present value adjustment | (4,578) | ||
Lease liabilities | 15,853 | $ 14,174 | |
Debt payable | |||
2025 | 180,000 | ||
2026 | 223,073 | ||
2028 | 400,000 | ||
Thereafter | 760,000 | ||
Total debt and interest payable | 1,563,073 | ||
2024 | 109,340 | ||
2025 | 108,929 | ||
2026 | 97,904 | ||
2027 | 86,750 | ||
2028 | 74,250 | ||
Thereafter | 148,125 | ||
Total undiscounted cash flows | 625,298 | ||
Other liabilities | |||
2024 | 67,956 | ||
2025 | 4,781 | ||
2026 | 4,146 | ||
2027 | 1,449 | ||
2028 | 1,344 | ||
Thereafter | 1,977 | ||
No contractual maturity date | 23,044 | ||
Total undiscounted cash flows | 104,697 | ||
Long-term incentive compensation payable | |||
No contractual maturity date | 162,318 | ||
Total undiscounted cash flows | 162,318 | 61,769 | $ 48,707 |
Financial liabilities relating to third-party interests in capital provision assets | |||
No contractual maturity date | 704,196 | ||
Total undiscounted cash flows | $ 704,196 | $ 425,205 |
Financial commitments and con_4
Financial commitments and contingent liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financial commitments and contingent liabilities | ||
Definitive | $ 768,311 | $ 767,786 |
Discretionary | 977,733 | 822,348 |
Total legal finance undrawn commitments | 1,746,044 | 1,590,134 |
Legal risk (definitive) | 55,583 | 81,193 |
Total capital provision-direct undrawn commitments | 1,801,627 | 1,671,327 |
Capital provision-indirect undrawn commitments | 71,662 | 49,400 |
Total capital provision undrawn commitments | $ 1,873,289 | $ 1,720,727 |
Financial commitments and con_5
Financial commitments and contingent liabilities - Lease Components (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financial commitments and contingent liabilities | |||
Operating lease cost | $ 2,729 | $ 2,280 | $ 2,273 |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 2,175 | $ 2,384 | $ 2,456 |
Financial commitments and con_6
Financial commitments and contingent liabilities - Right-of-use Assets and Related Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financial commitments and contingent liabilities | ||
Right-of-use assets | $ 13,851 | $ 12,716 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets |
Operating lease liabilities | $ 15,853 | $ 14,174 |
Weighted average remaining lease term (years) | 7 years 9 months 18 days | 8 years |
Weighted average discount rate | 6.70% | 6.70% |
Related party transactions (Det
Related party transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related party transactions | |||
Fundings of joint ventures and equity method investments | $ 9,285 | $ 7,864 | $ 19,327 |
Proceeds from joint ventures and equity method investments | $ 16,141 | $ 5,917 | $ 1,799 |
Credit risk from financial in_2
Credit risk from financial instruments (Details) - Credit Concentration Risk - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Credit risk from financial instruments | |||
Maximum credit exposure | $ 17.8 | $ 17.7 | |
Impairment against two specific financial assets | $ 0 | $ 0 | $ 0.5 |
Subsequent events (Details)
Subsequent events (Details) - Subsequent events - Burford Capital Global Finance LLC - Additional Notes 2031 $ in Millions | Jan. 30, 2024 USD ($) |
Subsequent events | |
Principal amount | $ 275 |
Percentage of offering price | 103.625% |