Fair value of assets and liabilities (Tables)
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9 Months Ended |
Sep. 30, 2026 |
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| Fair Value Disclosures [Abstract] |
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| 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. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2026 | | ($ in thousands) | | Level 1 | | Level 2 | | Level 3 | | Total | | Assets: | | | | | | | | | | Capital provision assets | | | | | | | | | | Derivative financial assets | | | | | | | | | | Single case | | $ | — | | | $ | — | | | $ | 849,809 | | $ | 849,809 | | Portfolio | | — | | | — | | | 1,452,072 | | 1,452,072 | | Portfolio with equity risk | | — | | | — | | | 35,819 | | 35,819 | | Legal risk management | | — | | | — | | | 6,525 | | 6,525 | | Non-derivative financial assets | | | | | | | | | | Joint ventures and equity method investments | | — | | | — | | | 218,765 | | 218,765 | | Single case with equity risk | | 814 | | — | | | — | | | 814 | | Assets of consolidated investment companies | | | | | | | | | | Core legal finance (BOF-C) | | 988 | | — | | | 671,406 | | 672,394 | | Core legal finance (EP Funds) | | — | | | — | | | 35,526 | | 35,526 | | Lower risk legal finance (Advantage Fund) | | — | | | — | | | 65,855 | | 65,855 | | Total capital provision assets | | 1,802 | | — | | | 3,335,777 | | 3,337,579 | | | | | | | | | | | Due from settlement of capital provision assets | | — | | | — | | | 120,422 | | 120,422 | | Marketable securities | | | | | | | | | | Government securities | | 1,581 | | | — | | | — | | | 1,581 | | Corporate debt | | — | | | 44,823 | | — | | | 44,823 | | Asset-backed securities | | — | | | 5,998 | | — | | | 5,998 | | Mutual funds | | 4,875 | | — | | | — | | | 4,875 | | Certificates of deposit | | — | | | 10,129 | | | — | | | 10,129 | | Total assets | | 8,258 | | 60,950 | | 3,456,199 | | 3,525,407 | | | | | | | | | | | Liabilities: | | | | | | | | | | Financial liabilities relating to third-party interests in capital provision assets | | — | | | — | | | 101,591 | | 101,591 | | Total liabilities | | — | | | — | | | 101,591 | | 101,591 | | Net total | | 8,258 | | 60,950 | | 3,354,608 | | 3,423,816 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | 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 |
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| 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 September 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 | | $ | 768,850 | | $ | — | | | $ | — | | | $ | 41,630 | | $ | (32,791) | | $ | 72,798 | | $ | (678) | | $ | 849,809 | | Portfolio | | 1,389,446 | | — | | | — | | | 45,053 | | (33,345) | | 51,110 | | (192) | | 1,452,072 | | Portfolio with equity risk | | 39,259 | | — | | | — | | | 92 | | — | | | (3,532) | | — | | | 35,819 | | Legal risk management | | 6,210 | | — | | | — | | | — | | | — | | | 352 | | (37) | | 6,525 | | Joint ventures and equity method investments | | 216,341 | | — | | | — | | | - | | (961) | | 3,837 | | (452) | | 218,765 | | Core legal finance (BOF-C) | | 655,297 | | — | | | — | | | 13,527 | | (21,709) | | 24,291 | | — | | | 671,406 | | Core legal finance (EP Funds) | | 38,172 | | — | | | — | | | 138 | | — | | | (2,784) | | — | | | 35,526 | | Lower risk legal finance (Advantage Fund) | | 66,982 | | — | | | — | | | — | | | (2,817) | | 1,690 | | — | | | 65,855 | | Total capital provision assets | | 3,180,557 | | | — | | | — | | | 100,440 | | (91,623) | | 147,762 | | (1,359) | | 3,335,777 | | Due from settlement of capital provision assets | | 122,370 | | — | | | — | | | 94,324 | | | (97,457) | | 1,301 | | (116) | | | 120,422 | | | Total Level 3 assets | | 3,302,927 | | | — | | | — | | | 194,764 | | | (189,080) | | | 149,063 | | | (1,475) | | | 3,456,199 | | | | | | | | | | | | | | | | | | | Financial liabilities relating to third-party interests in capital provision assets | | 93,000 | | — | | | — | | | 1,960 | | | — | | | 6,798 | | (167) | | | 101,591 | | | Total Level 3 liabilities | | 93,000 | | | — | | | — | | | 1,960 | | | — | | | 6,798 | | | (167) | | | 101,591 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended September 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 | | $ | 807,141 | | | $ | — | | | $ | — | | | $ | 42,531 | | | $ | (28,417) | | | $ | 26,259 | | | $ | (513) | | | $ | 847,001 | | | Portfolio | | 3,235,173 | | | — | | | — | | | 77,074 | | | (22,582) | | | 64,375 | | | (53) | | | 3,353,987 | | | Portfolio with equity risk | | 76,951 | | | — | | | — | | | 92 | | | (28,326) | | | (7,406) | | | — | | | 41,311 | | | Legal risk management | | 8,447 | | | — | | | — | | | — | | | — | | | (3,040) | | | 7 | | | 5,414 | | | Joint ventures and equity method investments | | 180,779 | | | — | | | — | | | 1,390 | | | (488) | | | (12,780) | | | (106) | | | 168,795 | | | Core legal finance (BOF-C) | | 699,942 | | | — | | | — | | | 15,105 | | | (52,695) | | | (6,755) | | | — | | | 655,597 | | Core legal finance (EP Funds)1 | | 432,004 | | | — | | | — | | | — | | | — | | | 10,583 | | | — | | | 442,587 | | Lower risk legal finance (Advantage Fund) | | 91,022 | | | — | | | — | | | 553 | | | (3,219) | | | 2,657 | | | — | | | 91,013 | | | Total capital provision assets | | 5,531,459 | | | — | | | — | | | 136,745 | | | (135,727) | | | 73,893 | | | (665) | | | 5,605,705 | | | Due from settlement of capital provision assets | | 118,451 | | | — | | | — | | | 139,361 | | | (159,138) | | | 2,957 | | | (4,871) | | | 96,760 | | | Total Level 3 assets | | 5,649,910 | | | — | | | — | | | 276,106 | | | (294,865) | | | 76,850 | | | (5,536) | | | 5,702,465 | | | | | | | | | | | | | | | | | | | | Financial liabilities relating to third-party interests in capital provision assets | | 823,430 | | | — | | | — | | | (141) | | | — | | | 19,718 | | | (71) | | | 842,936 | | | Total Level 3 liabilities | | 823,430 | | | — | | | — | | | (141) | | | — | | | 19,718 | | | (71) | | | 842,936 | 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 $80.0 million were other additions that are offset by other third-party liabilities assumed on consolidation. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Nine months ended September 30, 2026 | | ($ 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) | | | $ | 99,656 | | | $ | (120,600) | | | $ | 66,880 | | | $ | (3,702) | | | $ | 849,809 | | Portfolio | | 3,383,317 | | — | | | (6,580) | | | 181,508 | | | (126,859) | | | (1,977,365) | | | (1,949) | | | 1,452,072 | | Portfolio with equity risk | | 38,524 | | — | | | — | | | 272 | | | — | | | (2,977) | | | — | | | 35,819 | | Legal risk management | | 5,737 | | — | | | — | | | — | | | — | | | 1,001 | | | (213) | | | 6,525 | | Joint ventures and equity method investments | | 189,488 | | — | | | — | | | 12,303 | | | (1,544) | | | 22,499 | | | (3,981) | | | 218,765 | | Core legal finance (BOF-C) | | 650,616 | | — | | | (4,523) | | | 55,729 | | | (84,785) | | | 54,369 | | | — | | | 671,406 | | Core legal finance (EP Funds) | | 451,407 | | | — | | | — | | | 995 | | | — | | | (416,876) | | | — | | | 35,526 | | Lower risk legal finance (Advantage Fund) | | 65,688 | | — | | | — | | | — | | | (6,253) | | | 6,420 | | | — | | | 65,855 | | Total capital provision assets | | 5,604,292 | | — | | | (23,043) | | | 350,463 | | (340,041) | | | (2,246,049) | | (9,845) | | 3,335,777 | | Due from settlement of capital provision assets | | 164,804 | | | — | | | — | | | 344,603 | | | (391,838) | | | 3,121 | | | (268) | | | 120,422 | | | Total Level 3 assets | | 5,769,096 | | — | | | (23,043) | | | 695,066 | | (731,879) | | | (2,242,928) | | (10,113) | | 3,456,199 | | | | | | | | | | | | | | | | | | | Financial liabilities relating to third-party interests in capital provision assets | | 858,491 | | | — | | | 1,174 | | | 8,485 | | | (44) | | | (766,209) | | | (306) | | | 101,591 | | | Total Level 3 liabilities | | 858,491 | | — | | | 1,174 | | | 8,485 | | | (44) | | | (766,209) | | (306) | | | 101,591 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Nine months ended September 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) | | | $ | 149,931 | | | $ | (163,766) | | | $ | 85,254 | | | $ | 9,537 | | | $ | 847,001 | | | Portfolio | | 3,053,800 | | | — | | | — | | | 138,853 | | | (85,489) | | | 239,862 | | | 6,961 | | | 3,353,987 | | | Portfolio with equity risk | | 65,041 | | | — | | | — | | | 272 | | | (28,326) | | | 4,324 | | | — | | | 41,311 | | | Legal risk management | | 6,442 | | | — | | | — | | | — | | | — | | | (1,922) | | | 894 | | | 5,414 | | | Joint ventures and equity method investments | | 154,220 | | | — | | | — | | | 1,390 | | | (1,313) | | | 7,538 | | | 6,960 | | | 168,795 | | | Core legal finance (BOF-C) | | 705,315 | | | — | | | — | | | 46,290 | | | (120,176) | | | 24,168 | | | — | | | 655,597 | | Core legal finance (EP Funds)1 | | — | | | — | | | 286,474 | | | 115,301 | | | — | | | 40,812 | | | — | | | 442,587 | | Lower risk legal finance (Advantage Fund) | | 189,288 | | | — | | | — | | | 1,488 | | | (111,702) | | | 11,939 | | | — | | | 91,013 | | | Total capital provision assets | | 5,226,625 | | | — | | | — | | | 453,525 | | | (510,772) | | | 411,975 | | | 24,352 | | | 5,605,705 | | | Due from settlement of capital provision assets | | 183,858 | | | — | | | — | | | 518,286 | | | (606,950) | | | 5,912 | | | (4,346) | | | 96,760 | | | Total Level 3 assets | | 5,410,483 | | | — | | | — | | | 971,811 | | | (1,117,722) | | | 417,887 | | | 20,006 | | | 5,702,465 | | | | | | | | | | | | | | | | | | | | Financial liabilities relating to third-party interests in capital provision assets | | 747,053 | | | — | | | — | | | 12,101 | | | — | | | 83,771 | | | 11 | | | 842,936 | | | Total Level 3 liabilities | | 747,053 | | | — | | | — | | | 12,101 | | | — | | | 83,771 | | | 11 | | | 842,936 | 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 $80.0 million were other additions that are offset by other third-party liabilities assumed on consolidation. |
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| Schedule of Key Unobservable Inputs |
The tables below set forth each of the key unobservable inputs used to value the Group’s capital provision assets and the applicable ranges and weighted average by relative fair value for such inputs as of the dates indicated. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ($ in thousands) | | September 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 | | | | | | | | 5.8% | | 8.4% | | 7.6% | Duration(2) (years) | | | | | | | | 0.3 | | 13.5 | | 3.5 | | Adjusted risk premium | | | | | | | | 0.0% | | 100.0% | | 48.0% | | Positive case milestone factor: | | | | | | | | | | | | | | Significant ruling or other objective event prior to trial court judgment | | $182,759 | | $172,148 | | $354,907 | | 5.0% | | 40.0% | | 25.4% | | Trial court judgment or tribunal award | | 83,721 | | 122,207 | | 205,928 | | 25.0% | | 60.0% | | 56.0% | | Appeal judgment | | 63,310 | | 67,347 | | 130,657 | | 67.6% | | 80.0% | | 69.3% | | Asset freeze | | 2,441 | | 953 | | 3,394 | | 4.4% | | 4.4% | | 4.4% | | Exhaustion of as-of-right appeals | | 7,955 | | 12,374 | | 20,329 | | 80.0% | | 80.0% | | 80.0% | | Exhaustion of all appeals | | 80,122 | | 44,487 | | 124,609 | | 100.0% | | 100.0% | | 100.0% | | Settlement | | 9,460 | | (3,064) | | 6,396 | | 80.0% | | 100.0% | | 100.0% | | Portfolios with multiple factors | | 637,930 | | 539,611 | | 1,177,541 | | 0.0% | | 100.0% | | 26.9% | | Other | | 345 | | (166) | | | 179 | | 100.0% | | 100.0% | | 100.0% | | Negative case milestone factor: | | | | | | | | | | | | | | Significant ruling or other objective event prior to trial court judgment | | 84,287 | | (61,270) | | | 23,017 | | (40.0) | % | | (60.0) | % | | (48.4) | % | | Trial court judgment or tribunal award | | 75,129 | | (37,968) | | | 37,161 | | (10.0) | % | | (60.0) | % | | (57.4) | % | | Appeal judgment | | 11,161 | | (12,034) | | | (873) | | | (80.0) | % | | (100.0) | % | | (80.0) | % | | Portfolios with multiple factors | | 66,587 | | (51,422) | | | 15,165 | | (10.0) | % | | (80.0) | % | | (34.3) | % | | No case milestone: | | 1,043,904 | | (107,610) | | 936,294 | | | | | | | | YPF-related assets: | | 126,920 | | (35,312) | | 91,608 | | | | | | | | | 2,476,031 | | 650,281 | | 3,126,312 | | | | | | | | | | | | | | | | | | | | | 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 | | 56,630 | | 9,226 | | 65,856 | | 12.7% | | 21.6% | | 15.6% | Duration(2) (years) | | | | | | | | 1.2 | | 2.5 | | 1.5 | | | | | | | | | | | | | | | 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 | | 11,294 | | 42,018 | | 14.5 | % | | 14.5 | % | | 14.5 | % | | Resolution timing (years) | | | | | | | | 0.0 | | 2.0 | | 1.4 | | 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 | | 120,011 | | 411 | | | 120,422 | | 7.4% | | 7.4% | | 7.4% | | Collection risk | | | | | | | | — | % | | — | % | | — | % | | | | | | | | | | | | | | | Level 3 assets and liabilities, net | | 2,683,396 | | 671,212 | | 3,354,608 | | | | | | | | 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. |
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| Schedule of Increase (Decrease) in Consolidated Income and Net Assets Due to Change in Actual Interest Rates |
In addition, as of September 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) | | September 30, 2026 | | December 31, 2025 | | +100 bps interest rates | | $ | (121,478) | | | $ | (166,466) | | | +50 bps interest rates | | (61,100) | | | (83,662) | | | -50 bps interest rates | | 65,219 | | 87,423 | | -100 bps interest rates | | 131,325 | | 175,812 |
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| Schedule of Increase (Decrease) in Consolidated Income or Net Assets Due to Expected Timing of Favorable Outcome |
Furthermore, as of September 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) | | September 30, 2026 | | December 31, 2025 | +12 months duration(1) | | $ | (291,304) | | | $ | (422,303) | | +6 months duration(1) | | (142,903) | | | (229,491) | | -6 months duration(1) | | 162,524 | | 199,038 | -12 months duration(1) | | 312,624 | | 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. |
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