v3.25.1
Segment reporting
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment reporting Segment reporting
ASC Subtopic 280-10, “Segment Reporting”, establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available. The chief operating decision maker (“CODM”), who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Chief Executive Officer and Chief Financial Officer, collectively.
The CODM assesses the performance of the operating segments based on segment income/(loss) before income taxes which consists of the significant measures of the reportable segments’ financial performance that includes segment revenues, consisting of capital provision income plus/less third-party interests in capital provision income, asset management income, marketable securities income and interest and other income, less segment expenses, consisting of compensation and benefits, case related expenditures ineligible for inclusion in asset cost and general, administrative and other expenses. The CODM uses this metric to assess operating segment performance, for purposes of making operating decisions and assessing financial performance, which informs the CODMs allocation of resources. The Group excludes the proportional operating results that are attributable to third-party limited partners in our private funds, partners and minority investors, as the CODM does not consider them for the purposes of making decisions to allocate resources among segments or to assess segment performance. Although these amounts are excluded from segment income/(loss) before income taxes, they are included in reported consolidated income/(loss) before income taxes and are included in the reconciliation that follows.
The Group’s computation of segment income/(loss) before income taxes may not be comparable to other similarly titled measures computed by other companies because they do not all calculate segment income/(loss) before income taxes in the same fashion.
Operating revenues directly associated with each segment are included in determining its operating results. Operating and other expenses that are not directly attributable to a particular segment are based upon allocation methodologies, including time estimates and other relevant usage measures. Due to the integrated structure of the Group’s business, certain costs incurred by one segment may benefit the other segment. A segment may use the information produced by another segment without incurring an intersegment charge or an intersegment income.
The CODM does not review information regarding total assets on an operating segment basis but rather on a total segments (Burford-only) basis. The accounting policies for segment reporting are the same as for the Group as a whole.
The Group has two operating segments that are also its reportable segments and provide legal finance products and services to its clients: (i) Principal Finance and (ii) Asset Management and Other Services. The Principal Finance segment allocates capital to legal finance assets from Burford’s balance sheet, primarily as capital provision assets, and in limited scope through interests in private funds managed by Burford. The Asset Management and Other Services segment manages legal finance assets on behalf of third-party investors, and Burford provides other services to the legal industry for both of which it receives fees.
Beginning for the year ended December 31, 2024, the Group renamed its Capital Provision segment to Principal Finance and allocated revenue, expenses and assets from other corporate to the Group’s two reportable segments with no change to the Group’s total segments (Burford-only) numbers. The change in our allocation methodology as of December 31, 2024, was due to the amounts relating to these operating and non-operating activities previously presented as other corporate forming part of what is used internally to measure and evaluate the performance of the reportable segments. As a result of this change, the Group also recast certain previously reported amounts to conform with the change in allocation of revenue, expenses and assets to each reportable segment as noted below.
The tables below set forth certain information with respect to the Group’s unaudited condensed consolidated statements of operations by reportable segment for the periods indicated.
Three months ended March 31, 2025
Reconciliation
($ in thousands)Principal FinanceAsset
Management and Other Services		Total
segments
(Burford-only)
Reconciling items(1)
Total
consolidated
Capital provision income/(loss)$90,950 $— $90,950 $40,566 $131,516 
Plus/(Less): Third-party interests in capital provision assets— — — (20,796)(20,796)
Asset management income/(loss)— 13,837 13,837 (12,299)1,538 
Marketable securities income/(loss) and interest6,700 — 6,700 87 6,787 
Other income/(loss)— (186)(186)— (186)
Total revenues97,650 13,651 111,301 7,558 118,859 
Compensation and benefits21,062 5,252 26,314 — 26,314 
General, administrative and other8,312 1,808 10,120 90 10,210 
Case-related expenditures ineligible for inclusion in asset cost3,089 — 3,089 1,488 4,577 
Operating expenses32,463 7,060 39,523 1,578 41,101 
Other expenses
Finance costs33,880 — 33,880 — 33,880 
Foreign currency transactions (gains)/losses(599)— (599)(1)(600)
Total other expenses33,281 — 33,281 (1)33,280 
Income/(loss) before income taxes31,906 6,591 38,497 5,981 44,478 
1. Reconciling items include the proportional operating results that are attributable to third-party limited partners and minority investors in consolidated entities, including BOF-C, the Advantage Fund, Colorado, the EP Funds and other entities.
Three months ended March 31, 2024
Reconciliation
($ in thousands)Principal FinanceAsset
Management and Other Services		Total
segments
(Burford-only)
Reconciling items(1)
Total
consolidated
Capital provision income/(loss)$17,903 $— $17,903$22,858 $40,761
Plus/(Less): Third-party interests in capital provision assets— — — (5,224)(5,224)
Asset management income/(loss)— 6,673 6,673(4,810)1,863
Marketable securities income/(loss) and interest6,518 — 6,518 93 6,611 
Other income/(loss)— 284 284 — 284 
Total revenues24,4216,95731,37812,91744,295
Compensation and benefits18,102 3,899 22,001 — 22,001 
General, administrative and other6,013 1,104 7,117 333 7,450 
Case-related expenditures ineligible for inclusion in asset cost546 — 546 141 687 
Operating expenses24,661 5,003 29,664 474 30,138
Other expenses
Finance costs32,567— 32,567— 32,567
Foreign currency transactions (gains)/losses488 — 488 4 492 
Total other expenses33,055 — 33,055 4 33,059 
Income/(loss) before income taxes(33,295)1,954 (31,341)12,439 (18,902)
1. Reconciling items include the proportional operating results that are attributable to third-party limited partners and minority investors in consolidated entities, including BOF-C, the Advantage Fund, Colorado, the EP Funds and other entities.
For the three months ended March 31, 2024, the Group recast $6.5 million of marketable securities income/(loss) and interest, $2.8 million of operating expenses, $0.9 million of finance costs and $0.5 million of foreign currency transactions (gains)/losses from other corporate to its Principal Finance segment. In addition, the Group also recast $2.9 million of operating expenses from other corporate to its Asset Management and Other Services segment and $0.6 million of finance costs from Asset Management and Other Services segment to its Principal Finance segment.
The table below sets forth specified line items with respect to the Group’s unaudited condensed consolidated statements of financial condition by reportable segment as of the dates indicated.
March 31, 2025
Reconciliation
($ in thousands)Principal FinanceAsset
Management and Other Services		Total
segments
(Burford-only)
Reconciling items(1)
Total
consolidated
Cash and cash equivalents and marketable securities$538,374 $9,834 $548,208 $21,975 $570,183 
Other assets$26,911 $160,740 $187,651 $(121,877)$65,774 
Due from settlement of capital provision assets$102,648 $— $102,648 $— $102,648 
Capital provision assets$3,627,403 $— $3,627,403 $1,677,618 $5,305,021 
Total assets$4,406,530 $196,560 $4,603,089 $1,577,716 $6,180,805 
1. Reconciling items include the proportional operating results that are attributable to third-party limited partners and minority investors in consolidated entities, including BOF-C, the Advantage Fund, Colorado, the EP Funds and other entities.
December 31, 2024
Reconciliation
($ in thousands)Principal FinanceAsset
Management and Other Services		Total
segments
(Burford-only)
Reconciling items(1)
Total
consolidated
Cash and cash equivalents and marketable securities$508,031 $12,650 $520,681 $28,269 $548,950 
Other assets$23,711 $151,770 $175,481 $(114,475)$61,006 
Due from settlement of capital provision assets$183,651 $— $183,651 $207 $183,858 
Capital provision assets$3,571,224 $— $3,571,224 $1,672,693 $5,243,917 
Total assets$4,397,954 $190,377 $4,588,331 $1,586,694 $6,175,025 
1. Reconciling items include the proportional operating results that are attributable to third-party limited partners and minority investors in consolidated entities, including BOF-C, the Advantage Fund, Colorado, the EP Funds and other entities.