Burford Capital Ltd. Q3 FY2024 earnings call

• Christopher Bogart started by noting a strong quarter despite the third quarter often being slow, with realizations more than doubled and new commitments up significantly. - Jordan Licht detailed financials, including net income of $136 million, $0.61 per share, and tangible book value near $10.5. - Jon Molot discussed portfolio returns, IRRs, and the diverse nature of realizations. - Extensive discussion on YPF-Petersen cases, covering appeal status (appeals fully briefed, awaiting oral argument), enforcement efforts (post-judgment discovery, global recognition proceedings), and diplomatic efforts, along with details on the judgment's current status and economics. - Mention of asset management business performance and operating expenses trends.

For the third quarter, net realized gains almost doubled compared to the comparative quarter. Year-to-date, net realized gains are near record levels. Burford-only capital provision direct new commitments were around $450 million year-to-date, with new commitments in Q3 up more than 5x over the comparative period. Burford-only capital provision direct realizations were $380 million, a 39% increase over the same period last year, driven by a diverse set of assets. Cash receipts were strong, with $310 million in the third quarter and nearly $0.5 billion year-to-date for Burford-only capital provision direct. Non-YPF assets represented approximately $2.2 billion with a 35% fair value uplift to deployed cost.

No specific upward/downward revision stated. Discussed ongoing deployments with approximately $700 million of definitive commitments to deploy on the existing portfolio and expected cash from new and existing commitments over the coming years.

• Litigation risks related to ongoing YPF-Petersen cases, including challenges in enforcement and recognition of judgments in various jurisdictions. - Regulatory and legislative risks in litigation finance, such as potential disclosure requirements and legislative actions in the U.S. and U.K. affecting litigation finance.

Q: Has Argentina indicated they're not willing to come to the table until this appeal is fully adjudicated?

A: Constrained from discussing specific discussions with Argentina, but generally, it's unlikely a government would resolve a case with ongoing active litigation.

Q: When would expect the oral arguments to get scheduled for YPF appeal?

A: Case was fully briefed by end of August, eligible for oral argument, but no date set yet; likely to happen this year or early next year.

Q: Color on recent environment for deployments and new opportunities?

A: New business includes discretionary commitments and definitive commitments. Definitive commitments are $775 million with expected deployments over years as cases progress. Also, activity in antitrust, competition, intellectual property, and arbitration spaces.

Q: Rationale for DOJ waiting until recent time to announce?

A: DOJ's position is about foreign government issues and precedent, weighing factors like diplomatic relations and potential impact on U.S. government property.

Q: Regulatory or legislative front affecting litigation finance?

A: In U.S., disclosure discussions; in U.K., PACCAR decision and ongoing review by Civil Justice Council; EU directive on group actions creating opportunities for litigation finance.