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Announcements Commercial

Burford Capital Reports First Quarter 2023 Financial Results

Burford Capital Limited (“Burford”), the leading global finance and asset management firm focused on law, today announces its unaudited financial results at and for the three months ended March 31, 2023 (“1Q23”).1 Burford’s report on Form 6-K for 1Q23, including unaudited condensed consolidated financial statements (the “1Q23 Quarterly Report”), is available on the Burford Capital website at http://investors.burfordcapital.com.

Christopher Bogart, Chief Executive Officer of Burford Capital, commented:

“We saw continued positive momentum in the first quarter of 2023 in the progression of our portfolio as court activity and legal processes further normalized in the aftermath of the Covid-19 pandemic. The breadth of the case activity pick-up was reflected in capital provision income, excluding our YPF-related assets, more than doubling to $185 million compared to 1Q22, comprising almost a sixfold increase in realized gains and 41% growth in unrealized gains. Fair value gains arising from the favorable summary judgment ruling in our YPF-related assets contributed to an extraordinary first quarter for total revenues, driving growth in capital provision income of 238% to reach nearly $500 million. As an indicator of ongoing portfolio activity, an additional 12 case milestones have occurred since our May 16 update when we had observed 28 milestones and expected 61 more through the remainder of the year.”

1 All 1Q23 figures in this announcement are unaudited 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 1Q23 Quarterly Report (as defined above). In addition, Burford applied its revised valuation methodology for capital provision assets to its unaudited condensed consolidated financial statements at March 31, 2023 and for the three months ended March 31, 2023 and 2022 included in this announcement. As Burford has not previously issued quarterly financial statements, its unaudited condensed consolidated financial statements for the three months ended March 31, 2022 are not technically restated.

1Q23 highlights

New business

Group-wide new business

  • New commitments of $165 million, up 102% compared to 1Q22 (1Q22: $82 million)
  • Deployments of $129 million, up 1% compared to 1Q22 (1Q22: $128 million)

Burford-only capital provision-direct assets, representing assets capable of generating highest profits for our equity shareholders

  • New commitments of $101 million, up 130% compared to 1Q22 (1Q22: $44 million)
  • Deployments of $67 million, up 29% compared to 1Q22 (1Q22: $52 million)

Portfolio and liquidity

  • Group-wide portfolio grew to $6.6 billion at March 31, 2023 (December 31, 2022: $6.1 billion), due to significant fair value gains but also new deployments and undrawn commitments
  • Broad pick-up in portfolio activity, with capital provision income, excluding the YPF-related assets, more than doubling to $185 million compared to 1Q22
    • 464% increase in realized gains and 41% increase in unrealized gains compared to 1Q22
  • Fair value gains arising from the favorable summary judgment ruling in the YPF-related assets contributed to an extraordinary first quarter for total revenues
    • Burford-only carrying value of the YPF-related assets (both Petersen and Eton Park) increased to $1.0 billion at March 31, 2023 (December 31, 2022: $823 million)
  • Cumulative ROIC since inception from Burford-only capital provision-direct assets of 89% (December 31, 2022: 88%) and IRR of 29% (December 31, 2022: 29%)
  • Burford-only cash receipts of $97 million, up 66% compared to 1Q22 (1Q22: $59 million)
  • Burford-only cash and cash equivalents and marketable securities of $183 million at March 31, 2023 (December 31, 2022: $210 million)
    • Due from settlement of capital provision assets decreased 14% to $99 million at March 31, 2023 (December 31, 2022: $115 million, of which 17% was collected in cash in 1Q23)

Income

  • Total revenues increased 209% to $381 million (1Q22: $123 million), represented by a higher level of case activity and portfolio progression, including $192 million of fair value gains, net of third-party interests, in the YPF-related assets and $185 million of capital provision income excluding the YPF-related assets
  • Burford-only capital provision-direct realizations of $64 million (1Q22: $21 million) and realized gains of $36 million (1Q22: $10 million), with a single matter generating a realized gain of $27 million
  • Burford-only annualized capital provision-direct realized loss rate of 0.9% of average portfolio at cost in 1Q23 (2022: 1.0%)
  • Operating income increased 252% to $327 million (1Q22: $93 million), with significant growth in capital provision income compared to 1Q22, partially offset by third-party interests in the YPF-related assets fair value adjustments and higher total operating expenses due to increases in non-cash accruals in light of the positive performance of Burford’s share price, the increase in the carrying value of the YPF-related assets and the increase in the carrying value of a legacy asset recovery matter
  • Net income attributable to Burford Capital Limited shareholders increased 361% to $259 million (1Q22: $56 million)

Net income per ordinary and diluted share of $1.17 (1Q22: $0.25)

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Announcements Regulatory Issues

LionFish Updates Model Documents in Response to CJC Report

By John Freund |

LionFish Litigation Finance Ltd has released a new suite of model litigation funding documents, updating its original set from February 2021. The revision comes on the heels of the Civil Justice Council's (CJC) Final Report on Litigation Funding, issued on 2 June 2025, which calls for a regulatory structure informed by best practices, including key principles published by the European Law Institute (ELI) in October 2024.

A LionFish press release details that the updated suite incorporates several of the ELI Principles (notably 4-12) and broader CJC recommendations, except where doing so would require legislative or procedural reform. LionFish's goal, according to Managing Director Tets Ishikawa, is not to dictate market norms but to foster industry-wide standardisation and efficiency. This proactive move is also intended to spark further collaboration between funders, insurers, and legal practitioners to develop trade practices akin to those in mature financial markets, such as those promoted by the Loan Market Association and the International Swaps and Derivatives Association.

The new suite includes three core documents: a litigation funding agreement, a priorities deed to define proceeds distribution, and an assignment deed for insurance benefits. Notably, LionFish has also added documentation for co-investment arrangements, reflecting a growing trend in syndicated funding deals. The funder has already closed seven such transactions.

Managing Director Tanya Lansky emphasised that while litigation funding remains complex, making documentation public enhances transparency and facilitates quicker deal closings—an essential factor for sustaining market growth.

As litigation finance continues to mature, this move by LionFish highlights a shift toward professionalisation and standardisation. With regulators increasingly focused on transparency and fairness, such initiatives may set a de facto benchmark for others in the industry. The question remains: will other funders follow suit, or will regulatory mandates be needed to compel alignment?

Announcements Commercial Legal Innovation

Backlit Capital Solutions Launches Legal Finance Consultancy

By John Freund |

Backlit Capital Solutions has announced the launch of its full-service legal finance consultancy. The firm aims to provide comprehensive funding solutions for legal claims, offering services that include litigation finance, arbitration funding, and judgment enforcement strategies.

An article in PR Newswire states that Backlit Capital Solutions is positioning itself as a comprehensive provider in the legal finance sector, aiming to serve a diverse clientele that includes claimants, law firms, lenders, and investors. The firm's service offerings encompass litigation finance, arbitration funding, and judgment enforcement strategies, indicating a broad approach to legal funding solutions.

The launch of Backlit Capital Solutions reflects a growing trend in the legal finance industry, where firms are expanding their services to address the multifaceted needs of legal claimants and their representatives. By offering a suite of services under one roof, Backlit Capital Solutions aims to streamline the funding process and provide tailored solutions to its clients.

As the legal finance landscape continues to evolve, the entry of firms like Backlit Capital Solutions underscores the increasing demand for specialized financial services in the legal sector. Their comprehensive approach may set a new standard for how legal finance consultancies operate, potentially influencing the strategies of existing and emerging players in the market.

Announcements Commercial Legal Innovation

Fenchurch Legal Launches Secured Litigation Funding Strategy for Fixed-Income Investors

By Harry Moran |

Fenchurch Legal, a UK-based litigation funding specialist, today announced the launch of a structured secured lending strategy aimed at fixed-income investors seeking stable returns outside of traditional markets. With economic uncertainty challenging conventional income instruments, the firm’s high-volume consumer litigation model offers a predictable, uncorrelated alternative designed to deliver quarterly interest payments through a diversified portfolio of secured law firm loans.

As economic volatility continues to test traditional markets, a growing number of investors are turning to alternative asset classes that promise stable risk-reward profiles. Litigation funding, once considered niche, is now emerging as a mainstream alternative investment, providing secure income generation.

Fenchurch Legal, a UK-based specialist in litigation funding, is among the firms redefining  the landscape of alternative credit strategies by offering a secured, income-generating investment that is predictable and uncorrelated with traditional markets.

A Secured Lending Approach to Litigation Funding

Fenchurch Legal has structured its litigation funding offering through a secured lending model, offering investors a fixed-income product with a unique security structure designed to protect investor capital. Unlike large litigation funders who focus on a few high-value commercial cases, Fenchurch Legal funds a high volume of smaller consumer claims - including those related to financial mis-selling and mis-sold car finance. This high- volume strategy allows for broad diversification across numerous law firms and case types, helping to mitigate concentration risk and deliver consistent returns.

The predictability of this model enables investors to receive fixed, quarterly interest payments, making it an attractive option for those seeking regular income through a disciplined, secured alternative to traditional fixed-income investments.

Delivering Predictability in an Uncertain Environment

One of the most attractive features of litigation funding is its low correlation with traditional markets and macroeconomic cycles, making it particularly appealing in volatile or downturn conditions. Unlike speculative alternative assets, high-volume litigation funding offers a structured and secured approach, ideal for investors prioritizing capital preservation and low volatility. Its predictability and resilience are what set it apart, with performance driven by legal outcomes rather than market sentiment or economic indicators.

From Case Selection to Investor Returns: The Fenchurch Model in Action

Real world case examples, such as PPI or mis-sold car finance, demonstrate how funding supports access to justice while delivering predictable outcomes for investors. These well-established, protocol-driven cases highlight the tangible benefits of Fenchurch Legal’s approach.

Investor capital is pooled and deployed via secured loans to law firms, enabling them to pursue a high volume of these smaller consumer claims. These cases follow established legal protocols and have historically demonstrated repeatable outcomes. The loans are repaid by the law firms over time, with interest, regardless of individual case outcomes, all backed by After-the-Event (ATE) insurance for added downside protection. 

This risk-managed structure has allowed Fenchurch Legal to consistently deliver investors with predictable, quarterly interest payments, ideal for income focused investors. By funding thousands of low-value claims across multiple law firms, the model achieves broad diversification and reduces exposure to any single case or firm. This risk-managed approach has historically delivered competitive returns, typically ranging from 11–13% per annum — making it well-suited to income-focused portfolios.

Louisa Klouda, CEO and Founder of Fenchurch Legal, stated, "At Fenchurch Legal, we’ve designed a litigation funding model that mirrors the features fixed income investors value most — regular income, downside security, and a diversified, risk-managed portfolio."

"In today’s economy, stability is the new growth. Litigation funding provides exactly that — it’s an asset class with low volatility, high transparency, and a compelling risk-adjusted return," she added.

About Fenchurch Legal

Fenchurch Legal is a UK-based specialist litigation financier, providing disbursement funding to small and mid-sized law firms pursuing consumer claims where outcomes are well-established and repeatable, including housing disrepair, financial mis-selling, and undisclosed commission cases. Founded in early 2020, Fenchurch Legal was established in response to growing demand for litigation funding in the smaller consumer claims segment—an underserved area of the UK litigation finance market. In parallel, Fenchurch Legal structures litigation finance investment products designed for investors, providing exposure to a non-correlated, secured investment class.