v3.26.3
Capital provision assets
 9 Months Ended
Sep. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Capital provision assets Capital provision assets
Capital provision assets are financial instruments that relate to the provision of capital in connection with legal finance, which includes the Advantage Fund.
The Group’s largest individual asset was its interest in the proceeds of claims brought by the Petersen and Eton Park entities against the Republic of Argentina and YPF S.A. On September 15, 2023, judgment was entered in favor of the plaintiffs resulting in a substantial increase in the balance sheet fair value of the YPF-related assets, and that value increased further in the year ended December 31, 2024 when the court ordered the turnover of certain YPF S.A.’s shares to plaintiffs. However, on March 27, 2026, the US Court of Appeals for the Second Circuit reversed on appeal the US District Court for the Southern District of New York’s entry of judgment in favor of Petersen and Eton Park in the YPF-related assets (the “YPF Judgment Reversal”) and, as a result, the balance sheet fair value of the YPF-related assets has been significantly reduced.
The table below sets forth the changes in capital provision assets as of the beginning and end of the relevant reporting periods.
Three months ended September 30,Nine months ended September 30,
($ in thousands)2026202520262025
Beginning of period$3,184,677 $5,544,683 $5,609,949 $5,243,917 
Transfers(1)
— — (23,043)— 
Deployments100,440 136,745 350,463 453,525 
Realizations(94,324)(139,361)(344,603)(518,286)
Income/(loss) for the period(2)
147,911 73,716 (2,245,560)410,470 
Foreign exchange gains/(losses)(1,125)(478)(9,627)25,679 
End of period3,337,579 5,615,305 3,337,579 5,615,305 
Deployed cost, end of period2,595,249 2,467,503 2,595,249 2,467,503 
Unrealized fair value, end of period742,330 3,147,802 742,330 3,147,802 
Total capital provision assets3,337,579 5,615,305 3,337,579 5,615,305 
1. Relates to certain costs previously included within capital provision assets that did not meet the applicable criteria for inclusion in the fair value of those assets. These amounts have been expensed in the three months ended March 31, 2026 within “Case-related expenditures ineligible for inclusion in asset cost”. The impact of this matter was not material to the three and nine months ended September 30, 2026 or any of the prior periods.
2. Includes a capital provision loss of $2.4 billion for the nine months ended September 30, 2026 relating to the YPF Judgment Reversal.
The table below sets forth the components of the capital provision income/(loss) for the periods indicated.
Three months ended September 30,Nine months ended September 30,
($ in thousands)2026202520262025
Net realized gains/(losses)$24,953 $70,787 $122,778 $178,702 
Fair value adjustment during the period, net of previously recognized unrealized gains/(losses) transferred to realized gains/(losses)122,958 2,929 (2,368,338)231,768 
Income/(loss) on capital provision assets147,911 73,716 (2,245,560)410,470 
Foreign exchange gains/(losses)(1,354)2,164 (7,201)18,540 
Net income/(loss) from due from settlement of capital provision assets1,301 2,957 3,121 5,912 
Other income/(loss)(308)1,231 (96)826 
Total capital provision income/(loss) as reported in the unaudited condensed consolidated statements of operations147,550 80,068 (2,249,736)435,748 
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 unaudited condensed 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 unaudited condensed consolidated statements of comprehensive income. The currency of the primary economic environment in which an entity of the Group operates is referred to as the “functional currency” of the Group’s entity.