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BURFORD CAPITAL REPORTS FULL YEAR 2021 RESULTS; RECORD LEVELS OF BALANCE SHEET DEPLOYMENTS

Burford Capital Limited, the leading global finance and asset management firm focused on law, today announces its financial results for the year ended December 31, 2021.(1) The Burford Capital 2021 Annual Report, including financial statements (the “2021 Annual Report”), is available at the following link: http://www.rns-pdf.londonstockexchange.com/rns/4070G_1-2022-3-29.pdf or at Burford’s website www.burfordcapital.com/shareholders. In addition, a new financial data supplement, as well as Burford’s inaugural Sustainability Report for 2021, are available on our website at the same URL. Hugh Steven Wilson, Chairman of Burford Capital, commented: “Burford turned in an excellent 2021. This may seem odd to say as we report the first loss in our history, but that is a matter of timing. We wrote significant new core legal finance business in 2021. Even in an era of slower case progress,wegeneratedsignificantlymore cash thanneeded tocover allofour expenses. Burford ended the year with substantial liquidity and strong access to capital, and we recently announced our latest $360 million private fund.” Christopher Bogart, Chief Executive Officer of Burford Capital, commented: “We are delighted with our strong new business performance in 2021. To write more than $1 billion of new commitments during a pandemic is a significant achievement. We deployed more capital than ever before from our balance sheet into assets with the potential to generate our highest returns and profits, auguring favorably for future capital provision income. Though it was a slower year for realized gains, contributing toour 2021 loss, there were few adverse developments to causeeither realized or unrealized losses and the portfolio remains well positioned. The slow pace we are experiencing is a timing issue, not one affectingour viewofthe ultimaterealizable value of theportfolio andits potential tocreatesignificant shareholder value, and no client has discontinued a single matter due to these delays. We are optimistic about the portfolio’s future potential.” 2021 highlights New business
  • Record-breaking new business2, with Group-wide new commitments of $1.1 billion (2020: $758 million) and deployments of $841 million (2020: $595 million)
o Burford-only capital provision-direct new commitments of$649million(2020:$335million); the 2021 amount includes $63 million of new commitments warehoused for our funds; excluding those warehoused deals, new commitments were $586 million o Perhaps most significantly for potential future shareholder benefit, Burford-only capital provision-direct deployments, representing our assets capable of generating our highest balance sheet returns and profits, doubled to $447 million (2020: $225 million) Portfolio and balance sheet
  • Consolidated portfolio grew to $4.4 billion at December 31, 2021 (December 31, 2020: $3.8 billion)
o Group-wide portfolio grew to $5.1 billion (December 31, 2020: $4.5 billion), driven by new business growth
  • Cumulative return on invested capital from Burford-only capital provision-direct assets increased to 93% (December 31, 2020: 92%) with an IRR of 30% (December 31, 2020: 30%)
  • Internal model update at December 31, 2021 suggests core legal finance portfolio excluding YPF-related assets couldgenerate$3.8 billioninBurford-only realizations, $2.2billioninrealized gains and $400 million in asset management performance fee income (June 30, 2021: $3.4 billion in realizations, $2 billion in realized gains and $360 million in asset management performance fee income)3
  • Burford-only liquidity of $315 million at year end (December 31, 2020: $336 million)
Income
  • Total income of $152 million (2020: $359 million), including capital provision income of $128 million (2020: $340 million), reflecting slow case progress, in part due to Covid-linked disruption o Burford-only capital provision-direct net realized gains of $128 million (2020: $180 million) o Burford-only capital provision-direct realized losses of $9 million represented a loss rate of
0.8% (2020: $20 million; 2.2%)
  • Income from operations of $6 million (2020: $239 million), with decrease from 2020 due mainly to lower capital provision income and higher operating expenses, including legacy asset recovery charges
  • Net loss attributable to ordinary shares of $72 million (2020: net income attributable to ordinary share of $165 million), within previously disclosed expected range of $70 million to $80 million o Net loss per diluted share of $0.33 (2020: net income per diluted share of $0.75)
Capital
  • Total shareholders’ equity attributable to Burford Capital of $1.6 billion at December 31, 2021 (December 31, 2020: $1.7 billion)
o Burford-only total shareholders’ equity of $7.08 per share at December 31, 2021 (December 31, 2020: $7.59 per share) o Total tangible shareholders’ equity of $6.47 per share (December 31, 2020: $6.98 per share) • Declared final 2021 dividend of 6.25¢ per share payable on June 17, 2022, subject to shareholder approval at the annual general meeting to be held on May 18, 2022, to shareholders of record on May 27, 2022, with an ex-dividend date of May 26, 2022; total annual dividend of 12.5c per share -- (1) All figures in this announcement are audited and presented on a consolidated basis in accordance with the generally accepted accounting principles in the United States (“US GAAP”), unless otherwise stated. Definitions, reconciliations and information additional to those set forth in this announcement are available on the Burford Capital website and in the 2021 Annual Report. 2 Burford-only new commitments for 2021 include approximately $63 million of interests in assets that were warehoused for our funds at December 31, 2021, including a $13 million asset warehoused for Burford Opportunity Fund C LP and a $50 million asset warehoused for Burford Advantage Master Fund LP (the “Advantage Fund”), which will be reflected as a capital provision-indirect asset post-transfer. New commitments reflect the allocation in place at December 31, 2021, and does not reflect the intended transfer to other funds, which occurred or is expected to occur in early 2022. Excluding the warehoused commitments, Burford-only new commitments in 2021 for capital provision-direct were $586 million. Of the $50 million new commitment warehoused for the Advantage Fund, the Burford-only portion of this capital provision-indirect asset is expected to be $8 million. Total Burford-only new commitments to capital provision assets in 2021, post-intended transfers, were $594 million. 3 Data based on calculations derived from our internal modeling of individual matters and our portfolio as a whole. This data is not a forecast of future results, and past performance is not a guide to future performance. The inherent volatility and unpredictability of legal finance assets precludes forecasting and limits the predictive nature of our internal modeling. Further, the inherent nature of probabilistic modeling is that actual results will differ from the modeled results, and such differences could be material. The data based on calculations derived from our internal modeling is for informational purposes only and is not intended to be a profit forecast or be relied upon as a guide to future performance. See sections titled “Forward-looking statements” and “Risk Factors” in our Annual Report on Form 20-F for the year ended December 31, 2021 filed with the US Securities and Exchange Commission on March 29, 2022.
Commercial

Leaders League Ranks Top US and UK Litigation Funders

With investment in litigation finance on the rise, the industry will naturally breed winners and losers in terms of funder rankings. As potential claimants research the best third party investors to evaluate their case, it may be helpful to consult industry rankings. Leaders League offers a unique online tool allowing users access to rankings of litigation funders worldwide.  Leaders League rankings for top litigation funders in the United States comprises a group of 12 industry leaders. Leaders League also ranks the 14 top litigation funders in the United Kingdom.  Founded in Paris, France in 1996, Leaders League prides itself on collating international rankings spanning law, private equity, innovation marketing and wealth management. 
Commercial Legal Innovation

€13B Slovakia Expropriation Yields GESI, World’s First Arbitration Token 

The World Economic Forum (WEF) ranks corruption as the Slovak Republic’s second most pervasive pitfall for the country’s businesses sector. Ranking first on the list is governmental bureaucracy leading to systematic public service inefficiencies, according to WEF.  The GESI Token White Paper explains that Central Slovakia is home to one of the world’s largest talc mines, Gemerska Poloma. EuroGas Inc. won an exporporation appeal ruling, arguing that the Slovak state authority illegally took mining rights (as property) from EuroGas Inc. for public use and benefit. General European Strategic Investments Inc. (GESI) has purchased an 80% stake in EuroGas’ potential arbitration award.  The GESI utility token has been created to fund arbitration costs, litigation expenses and case management costs.  GESI Holdings LLC has utilized Wyoming’s new crypto business organization framework that protects decentralized autonomous organizations (DAOs). GESI has set-up a foundation to recognize token holders, and a total of 100,000,000 GESI tokens will be issued.  The token offer is being listed under SEC Rule 506 (c) of Regulation D, which means residents of the United States must be officially accredited investors and will be required to prove their accreditation before subscribing to GESI’s token sale. 
Commercial

Survey: Evolution of Litigation Finance 

Pioneers in the Litigation Finance industry have constructed some of the most advanced portfolio cases in the history of third party funding. A new survey polls global leaders and mines insights into the evolution of litigation finance.  Above the Law is tracking the survey submissions, offering free tickets (at, 'Stay Tuned with Preet'), to a live event at New York’s Town Hall on March 31, 2022. In the six years since the inception of the survey “Tracking the Evolution of Litigation Finance” … Above the Law has partnered with Lake Whillans to forecast more and more investment dollars earmarked for greater access to justice across the globe.  Take the survey, and LitigationFinanceJournal.com will report on the findings when the survey is published.
Commercial Fundraising

Houston’s Armadillo Litigation Funding Banks $750M Investment 

Armadillo Litigation Funding proudly announced the realization of a $750M funding round. The Houston-based third party funder highlights that the investment is its largest series to date. Proceeds will be used to distribute loans to commercial enterprises, with a focus on mass tort portfolio investment. Armadillo’s preferred loan target is $10M - $100M, secured by future claim awards, settlements and miscellaneous contingencies.  Armadillo’s announcement shares insights from the firm’s Chairman and CEO, Nick Johnson. Mr. Johnson notes that Armadillo’s success in raising $750M is further indication of his team’s leadership position in the litigation finance industry. Johnson goes on to say that Armadillo has capitalized on carving out an exclusive niche in mass tort litigation, offering borrowers and investors alike exclusive access to the firm’s wealth of expertise. Over the last decade, industry metrics indicate the impressive growth of mass tort litigation. The last two years have seen the largest mass tort litigation awards in history. Armadillo’s new $750M investment signals further leadership in the sector, according to Mr. Johnson. 
Commercial

Gaston Kroub’s Inaugural LITFINCON Takeaways

Earlier this month, Houston hosted the inaugural LITFINCON conference. The gathering billed itself as the preeminent conference for the global litigation finance industry. Houston is an interesting location for the conference, as the success of hosting LITFINCON in Texas illustrates that litigation finance also thrives outside of New York and London.  AbovetheLaw.com published a LITFINCON debrief op-ed by Gaston Kroub of Kroub, Silbersher & Kolmykov PLLC.  Kroub offered a very positive review of LITFINCON’s organizational makeup and curated content lineup.  Kroub asserts the success of the inaugural conference is a humble achievement, for if the litigation finance space is to be successful, it will require investment in public awareness campaigns over the near and long terms. Kroub offered three takeaways from the conference, summarized below: 
  • Harnessing the power of human capital can be attributed to an ‘amazing’ pool of talent leading innovation in the litigation finance industry. Thought leaders in the space are not limited to intelligent lawyers, according to Kroub. From legal support staff to imaginative financial architects, the industry is powered by the quality of talented individuals. 
  • Relationship incubation will be the cornerstone of driving innovative efficiencies. Given the industry is expected to grow and evolve over time, creating relationships with key stakeholders will pay dividends down the road. 
  • Public awareness of litigation finance at the attorney and client levels are currently at the   embryonic stage. The successful litigation finance investor will be one who is able to lead public awareness in the space, which is why so many funders are attending conferences such as LitFinCon, and producing content online. 
Commercial Deals

Westfleet: 488% Litigation Portfolio Activity Increase 

Major activity in litigation finance investments, as various portfolio deals at $50M+ were recorded in 2021. The largest 200 law firms in the United States appear to be earmarking portfolio funds to take advantage of patent litigation matters, according to a new report. Patent litigation finance budgets increased 61% in 2021, with a total of 64% of capital associated with patent portfolio litigation.  The Westfleet Insider was recently published, offering the ‘2021 Litigation Finance Market Report,’ which notes a substantial increase in litigation investment deals sponsored by the largest law firms in the United States. AmLaw 200 firms saw a near 50% increase in litigation investments in 2021, compared to 2020’s figures. The average deal size in 2021 was $6.5M, encompassing an average single deal of $3.5M, and an average portfolio deal of $8.5M.  As an added bonus, we have made 15 highlights to Wesfleet’s report for your general reference.
Commercial Regulatory Issues

Podcast and Deck: Tax Aspects of Litigation Finance

Cadwalader, Wickersham and Taft LLP, sports a rich 225 year history, and is widely recognized as one of the pioneers in legal innovation. For example, Cadwalader won recognition for leading New York State in LIBOR regulatory contract legislation, receiving acknowledgement from the Financial Times North America in 2021. The Financial Times cited Cadwalader as one of the most innovative law firms in the category of “Creating new standards.”  Recently, Cadwalader’s Mark Howe sat down with Phil Balzafiore to discuss tax implications associated with litigation finance and what tax structures attorneys should consider whilst engaging litigation investment facilities. Howe and Balzafiore also discussed various third party funding products popular in the industry, highlighting potential tax consequences and considerations for risk mitigation.  A slide deck has also been published as a companion to the podcast. You can access the deck by clicking here.   
Commercial

The Attorney’s Guide to Mastering Litigation Finance

The worldwide litigation finance industry is experiencing a renaissance of sorts. With $12B+ in litigation assets under management in the United States, many experts forecast double digit growth in various third party litigation products and services. Mastering a working conceptualization of the evolving litigation finance ecosystem first requires a solid foundational understanding of the industry's architecture.  Lake Whillans’ new white paper aims to provide a contextual guide for legal professionals looking to ‘master’ litigation finance. The white paper explores various litigation investment scenarios, helping indicate the industry's flexibility in organizing a wide variety of product structures to meet various client needs. One key guiding principle to mastering litigation finance, according to Lake Whillans’ insights, is developing strong, robust and innovative litigation portfolio instruments. As an added bonus, we have made 67 highlights to the white paper for your added reference.