Burford Capital (BUR) Investor Update summary

Business performance and portfolio activity

• Portfolio exceeds $7 billion in diversified legal assets, with robust activity as courts normalize post-pandemic.

• Significant judgment pending in the YPF case, with a $16 billion award currently under appeal and enforcement.

• Track record of strong cash realizations, with nearly $3 billion realized and a 74% settlement rate.

• Loss rates have declined to about 8% due to experience and proprietary data use.

• Portfolio activity is described as supernormal, driven by courts clearing COVID backlogs and ongoing new case inflows.

Market position and growth

• Maintains market leadership, with a 40% implied market share in new commitments during a period when the overall market contracted.

• Business has evolved from simple litigation finance to larger, more complex deals, including multi-case portfolios and monetization of future litigation value.

• Origination is split between law firms and direct corporate clients, with proactive outreach and education driving new business.

• Focuses on clients with potential for larger or repeat litigation, aiming for long-term relationships.

Data, analytics, and underwriting

• Proprietary, confidential dataset and quantitative modeling provide a significant competitive advantage in underwriting and pricing.

• Data science investments have improved accuracy and risk management, with ongoing growth in the dataset as new cases are added.

• Investment professionals lead underwriting, integrating legal and financial analysis from the outset.