Fair value of assets and liabilities (Tables)

6 Months Ended

Jun. 30, 2026

Schedule of Fair Value of Financial Instruments

The tables below set forth the fair value of financial instruments grouped by the fair value level as of the dates indicated.


	June 30, 2026
($ in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Capital provision assets
Derivative financial assets
Single case	$	—	$	—	$	768,850	$	768,850
Portfolio	—		—		1,389,446		1,389,446
Portfolio with equity risk	—		—		39,259		39,259
Legal risk management	—		—		6,210		6,210
Non-derivative financial assets
Joint ventures and equity method investments	—		—		216,341		216,341
Single case with equity risk	1,848		—		—		1,848
Assets of consolidated investment companies
Core legal finance (BOF-C)	2,272		—		655,297		657,569
Core legal finance (EP Funds)	—		—		38,172		38,172
Lower risk legal finance (Advantage Fund)	—		—		66,982		66,982
Total capital provision assets	4,120		—		3,180,557		3,184,677

Due from settlement of capital provision assets	—		—		122,370		122,370
Marketable securities
Government securities	—		-		—		-
Corporate bonds	—		29,547		—		29,547
Asset-backed securities	—		9,654		—		9,654
Mutual funds	4,790		—		—		4,790
Certificates of deposit	6,370		—		—		6,370
Total assets	15,280		39,201		3,302,927		3,357,408

Liabilities:
Financial liabilities relating to third-party interests in capital provision assets	—		—		93,000		93,000
Total liabilities	—		—		93,000		93,000
Net total	15,280		39,201		3,209,927		3,264,408


	December 31, 2025
($ in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Capital provision assets
Derivative financial assets
Single case	$	—	$	—	$	819,515	$	819,515
Portfolio	—		—		3,383,317		3,383,317
Portfolio with equity risk	—		—		38,524		38,524
Legal risk management	—		—		5,737		5,737
Non-derivative financial assets
Joint ventures and equity method investments	—		—		189,488		189,488
Single case with equity risk	2,811		—		—		2,811
Assets of consolidated investment companies
Core legal finance (BOF-C)	2,846		—		650,616		653,462
Core legal finance (EP Funds)	—		—		451,407		451,407
Lower risk legal finance (Advantage Fund)	—		—		65,688		65,688
Total capital provision assets	5,657		—		5,604,292		5,609,949

Due from settlement of capital provision assets	—		—		164,804		164,804
Marketable securities
Government securities	—		58,333		—		58,333
Corporate bonds	—		15,861		—		15,861
Asset-backed securities	—		1,177		—		1,177
Mutual funds	7,828		—		—		7,828
Certificates of deposit	6,287		—		—		6,287
Total assets	19,772		75,371		5,769,096		5,864,239

Liabilities:
Financial liabilities relating to third-party interests in capital provision assets	—		—		858,491		858,491
Total liabilities	—		—		858,491		858,491
Net total	19,772		75,371		4,910,605		5,005,748

Schedule of Analysis of the Movements in the Level 3 Financial 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.


	Three months ended June 30, 2026
($ in thousands)	Beginning of period		Transfers into Level 3		Transfers		Deployments		Realizations		Income/(loss) for the period		Foreign exchange gains/(losses)		End of period
Single case	$	752,077	$	—	$	—	$	37,101	$	(49,777)	$	30,154	$	(705)	$	768,850
Portfolio	1,336,333		—		—		53,449		(36,347)		36,803		(792)		1,389,446
Portfolio with equity risk	31,788		—		—		91		—		7,380		—		39,259
Legal risk management	5,927		—		—		—		—		332		(49)		6,210
Joint ventures and equity method investments	204,964		—		—		4,682		(27)		7,961		(1,239)		216,341
Core legal finance (BOF-C)	678,522		—		—		14,299		(59,198)		21,674		—		655,297
Core legal finance (EP Funds)	38,357		—		—		454		—		(639)		—		38,172
Lower risk legal finance (Advantage Fund)	67,004		—		—		—		(1,800)		1,778		—		66,982
Total capital provision assets	3,114,972		—		—		110,076		(147,149)		105,443		(2,785)		3,180,557
Due from settlement of capital provision assets	180,041		—		—		148,970		(208,032)		1,250		141		122,370
Total Level 3 assets	3,295,013		—		—		259,046		(355,181)		106,693		(2,644)		3,302,927

Financial liabilities relating to third-party interests in capital provision assets	87,698		—		—		6,525		15		(1,112)		(126)		93,000
Total Level 3 liabilities	87,698		—		—		6,525		15		(1,112)		(126)		93,000


	Three months ended June 30, 2025
($ in thousands)	Beginning of period		Transfers into Level 3		Transfers		Deployments		Realizations		Income/(loss) for the period		Foreign exchange gains/(losses)		End of period
Single case	$	756,442	$	—	$	—	$	45,340	$	(37,713)	$	35,755	$	7,317	$	807,141
Portfolio	3,099,848		—		—		33,810		(13,359)		109,724		5,150		3,235,173
Portfolio with equity risk	74,222		—		—		91		—		2,638		—		76,951
Legal risk management	7,197		—		—		—		—		641		609		8,447
Joint ventures and equity method investments	157,435		—		—		—		(240)		19,176		4,408		180,779
Core legal finance (BOF-C)	679,101		—		—		20,635		(13,889)		14,119		(24)		699,942
Core legal finance (EP Funds)1	410,204		—		—		—		—		21,800		—		432,004
Lower risk legal finance (Advantage Fund)	108,050		—		—		428		(22,774)		5,318		—		91,022
Total capital provision assets	5,292,499		—		—		100,304		(87,975)		209,171		17,460		5,531,459
Due from settlement of capital provision assets	102,648		—		—		90,077		(76,758)		2,303		181		118,451
Total Level 3 assets	5,395,147		—		—		190,381		(164,733)		211,474		17,641		5,649,910

Financial liabilities relating to third-party interests in capital provision assets	780,330		—		—		(237)		—		43,257		80		823,430
Total Level 3 liabilities	780,330		—		—		(237)		—		43,257		80		823,430
1. The restructuring of the EP Funds resulted in the Group being required to consolidate the underlying assets and liabilities of the entities as of June 30, 2025. See note 2 (Summary of significant accounting policies) for additional information with respect to the EP Funds. Prior to consolidation, the Group had a “Single case” capital provision asset with the EP Funds representing its Eton Park interest in the YPF-related assets. This asset is eliminated on consolidation and forms part of the additions to “Core legal finance (EP Funds)”. The “Core legal finance (EP Funds)” end-of-period balance includes $82.6 million attributable to third-party interests, of which approximately $80.0 million were other additions that are offset by other third-party liabilities assumed on consolidation.


	Six months ended June 30, 2026
($ in thousands)	Beginning of period		Transfers into Level 3		Transfers		Deployments		Realizations		Income/(loss) for the period		Foreign exchange gains/(losses)		End of period
Single case	$	819,515	$	—	$	(11,940)	$	58,026	$	(87,809)	$	(5,918)	$	(3,024)	$	768,850
Portfolio	3,383,317		—		(6,580)		136,455		(93,514)		(2,028,475)		(1,757)		1,389,446
Portfolio with equity risk	38,524		—		—		180		—		555		—		39,259
Legal risk management	5,737		—		—		—		—		649		(176)		6,210
Joint ventures and equity method investments	189,488		—		—		12,303		(583)		18,662		(3,529)		216,341
Core legal finance (BOF-C)	650,616		—		(4,523)		42,202		(63,076)		30,078		—		655,297
Core legal finance (EP Funds)	451,407		—		—		857		—		(414,092)		—		38,172
Lower risk legal finance (Advantage Fund)	65,688		—		—		—		(3,436)		4,730		—		66,982
Total capital provision assets	5,604,292		—		(23,043)		250,023		(248,418)		(2,393,811)		(8,486)		3,180,557
Due from settlement of capital provision assets	164,804		—		—		250,279		(294,381)		1,820		(152)		122,370
Total Level 3 assets	5,769,096		—		(23,043)		500,302		(542,799)		(2,391,991)		(8,638)		3,302,927

Financial liabilities relating to third-party interests in capital provision assets	858,491		—		1,174		6,525		(44)		(773,007)		(139)		93,000
Total Level 3 liabilities	858,491		—		1,174		6,525		(44)		(773,007)		(139)		93,000


	Six months ended June 30, 2025
($ in thousands)	Beginning of period		Transfers into Level 3		Transfers		Deployments		Realizations		Income/(loss) for the period		Foreign exchange gains/(losses)		End of period
Single case	$	1,052,519	$	—	$	(286,474)	$	107,400	$	(135,349)	$	58,995	$	10,050	$	807,141
Portfolio	3,053,800		—		—		61,779		(62,907)		175,487		7,014		3,235,173
Portfolio with equity risk	65,041		—		—		180		—		11,730		—		76,951
Legal risk management	6,442		—		—		—		—		1,118		887		8,447
Joint ventures and equity method investments	154,220		—		—		—		(825)		20,318		7,066		180,779
Core legal finance (BOF-C)	705,315		—		—		31,185		(67,481)		30,923		—		699,942
Core legal finance (EP Funds)1	—		—		286,474		115,301		—		30,229		—		432,004
Lower risk legal finance (Advantage Fund)	189,288		—		—		935		(108,483)		9,282		—		91,022
Total capital provision assets	5,226,625		—		—		316,780		(375,045)		338,082		25,017		5,531,459
Due from settlement of capital provision assets	183,858		—		—		378,925		(447,812)		2,955		525		118,451
Total Level 3 assets	5,410,483		—		—		695,705		(822,857)		341,037		25,542		5,649,910

Financial liabilities relating to third-party interests in capital provision assets	747,053		—		—		12,242		—		64,053		82		823,430
Total Level 3 liabilities	747,053		—		—		12,242		—		64,053		82		823,430
1. The restructuring of the EP Funds resulted in the Group being required to consolidate the underlying assets and liabilities of the entities as of June 30, 2025. See note 2 (Summary of significant accounting policies) for additional information with respect to the EP Funds. Prior to consolidation, the Group had a “Single case” capital provision asset with the EP Funds representing its Eton Park interest in the YPF-related assets. This asset is eliminated on consolidation and forms part of the additions to “Core legal finance (EP Funds)”. The “Core legal finance (EP Funds)” end-of-period balance includes $82.6 million attributable to third-party interests, of which approximately $80.0 million were other additions that are offset by other third-party liabilities assumed on consolidation.

Schedule of Key Unobservable Inputs

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 as of the dates indicated.


($ in thousands)	June 30, 2026
Type:	Single case, Portfolio, Legal risk management, Joint ventures and equity method investments, Core legal finance (BOF-C)(1), Core legal finance (EP Funds), 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				5.1%		7.7%		6.7%
Duration(2) (years)				0.5		13.8		3.5
Adjusted risk premium				0.0%		100.0%		48.6%
Positive case milestone factor:
Significant ruling or other objective event prior to trial court judgment	$153,869	$114,143	$268,012	5.0%		40.0%		25.7%
Trial court judgment or tribunal award	77,118	115,923	193,041	25.0%		60.0%		56.9%
Appeal judgment	63,040	69,428	132,468	67.6%		80.0%		69.3%
Asset freeze	2,441	916	3,357	4.4%		4.4%		4.4%
Exhaustion of as-of-right appeals	5,000	7,526	12,526	80.0%		80.0%		80.0%
Exhaustion of all appeals	79,882	52,828	132,710	100.0%		100.0%		100.0%
Settlement	9,417	(2,254)	7,163	80.0%		100.0%		100.0%
Portfolios with multiple factors	643,086	392,387	1,035,473	0.0%		100.0%		23.9%
Other	341	(167)	174	100.0%		100.0%		100.0%
Negative case milestone factor:
Significant ruling or other objective event prior to trial court judgment	65,622	(44,408)	21,214	(40.0)	%	(60.0)	%	(47.1)	%
Trial court judgment or tribunal award	63,062	(30,819)	32,243	(10.0)	%	(60.0)	%	(58.7)	%
Appeal judgment	10,980	(12,032)	(1,052)	(80.0)	%	(100.0)	%	(80.0)	%
Portfolios with multiple factors	50,616	(29,654)	20,962	(10.0)	%	(56.7)	%	(28.3)	%
No case milestone:	1,095,229	(80,061)	1,015,168
YPF-related assets:	125,623	(24,559)	101,064
	2,445,326	529,197	2,974,523

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	57,933	9,050	66,983	11.9%		20.8%		14.8%
Duration(2) (years)				0.3		2.5		1.1

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	30,724	15,327	46,051	14.0	%	14.0	%	14.0	%
Resolution timing (years)				0.3		2.3		0.9
Conversion ratio				0.5		0.5		0.5

Type:	Due from settlement of capital provision assets
Principal value technique:	Discounted cash flow
Unobservable input:	Cost	Unrealized	Fair value	Minimum		Maximum		Weighted average
Discount rate	122,127	243	122,370	6.6%		6.6%		6.6%
Collection risk				—	%	—	%	—	%

Level 3 assets and liabilities, net	2,656,110	553,817	3,209,927
1. Includes the proportional participation 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) for additional information with respect to the valuation methodology for Level 3 assets.


($ in thousands)	December 31, 2025
Type:	Single case, Portfolio, Legal risk management, Joint ventures and equity method investments, Core legal finance (BOF-C)(1), Core legal finance (EP Funds), 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				4.6%		7.5%		6.1%
Duration(2) (years)				0.2		13.0		2.8
Adjusted risk premium				0.0%		100.0%		31.1%
Positive case milestone factor:
Significant ruling or other objective event prior to trial court judgment	$162,058	$114,685	$276,743	5.0%		40.0%		24.9%
Trial court judgment or tribunal award	83,550	94,354	177,904	25.0%		60.0%		54.1%
Appeal judgment	62,916	77,731	140,647	68.6%		80.0%		70.0%
Asset freeze	2,441	830	3,271	4.4%		4.4%		4.4%
Exhaustion of as-of-right appeals	5,000	7,350	12,350	80.0%		80.0%		80.0%
Exhaustion of all appeals	79,320	119,559	198,879	100.0%		100.0%		100.0%
Settlement	420	1,379	1,799	40.0%		80.0%		78.1%
Portfolios with multiple factors	641,286	384,916	1,026,202	0.5%		100.0%		21.3%
Other	332	(168)	164	100.0%		100.0%		100.0%
Negative case milestone factor:
Significant ruling or other objective event prior to trial court judgment	76,582	(53,750)	22,832	(40.0)	%	(60.0)	%	(49.9)	%
Trial court judgment or tribunal award	46,376	(28,340)	18,036	(10.0)	%	(60.0)	%	(56.6)	%
Appeal judgment	14,164	(16,992)	(2,828)	(80.0)	%	(100.0)	%	(80.0)	%
Portfolios with multiple factors	48,542	(29,953)	18,589	(10.0)	%	(80.0)	%	(31.2)	%
No case milestone:	1,029,323	21,655	1,050,978
YPF-related assets:	117,577	1,571,781	1,689,358
	2,369,887	2,265,037	4,634,924

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	58,790	6,898	65,688	11.4%		20.3%		14.3%
Duration(2) (years)				0.7		2.5		1.3

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	30,723	14,466	45,189	12.8%		12.8%		12.8%
Resolution timing (years)				0.8		2.8		1.5
Conversion ratio				0.5		0.5		0.5

Type:	Due from settlement of capital provision assets
Principal value technique:	Discounted cash flow
Unobservable input:	Cost	Unrealized	Fair value	Minimum		Maximum		Weighted average
Discount rate	160,444	4,360	164,804	6.2%		6.2%		6.2%
Collection risk				0.0%		0.0%		0.0%

Level 3 assets and liabilities, net	2,619,844	2,290,761	4,910,605
1. Includes the proportional participation 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) for additional information with respect to the valuation methodology for Level 3 assets.

Schedule of Increase (Decrease) in Consolidated Income and Net Assets Due to Change in Actual Interest Rates

In addition, as of June 30, 2026 and December 31, 2025, 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 unaudited condensed consolidated income and net assets would have increased or decreased, as applicable, by the following amounts.


($ in thousands)	June 30, 2026		December 31, 2025
+100 bps interest rates	$	(118,337)	$	(166,466)
+50 bps interest rates	(59,576)		(83,662)
-50 bps interest rates	63,554		87,423
-100 bps interest rates	128,098		175,812

Schedule of Increase (Decrease) in Consolidated Income or Net Assets Due to Expected Timing of Favorable Outcome

Furthermore, as of June 30, 2026 and December 31, 2025, 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 unaudited condensed consolidated income and net assets would have increased or decreased, as applicable, by the following amounts.


($ in thousands)	June 30, 2026		December 31, 2025
+12 months duration(1)	$	(257,236)	$	(422,303)
+6 months duration(1)	(129,030)		(229,491)
-6 months duration(1)	134,128		199,038
-12 months duration(1)	269,242		383,172
1. Duration refers to the expected timing of a favorable outcome. See note 2 (Summary of significant accounting policies—Fair value of financial instruments) for additional information with respect to the valuation methodology for Level 3 assets.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details