Burford Capital Limited (BUR) 29 Mar 222021 Q4 Earnings call transcript

Hello and welcome to the Burford Capital Presentation of 2021 Full Year Results. My name is Lauren and I will be coordinating your call today. [Operator Instructions] I will now hand you over to your host, Christopher Bogart, Chief Executive Officer to begin. Christopher, please go ahead.

Thanks very much and hello everyone. joining for on our our XXXX for via telephone full all numbers. webcast the earnings you us the both and year Thank call about

of Chief call with Financial Chief seriatim. you the we through Jon X, summary on things balance pleased should Slide This in translated business best I’d year of was which assets. all usual, the you and new and that on the walk our our slides we we in strength As portfolio of Molot, which performance. Brause, me of we where wrote shareholders. business, growth litigation Officer during Burford’s further Burford’s of that returns the commitments the plus of which I start just the billion total in Investment maximize for will now particularly capital, that Burford’s highlight our the have overall Officer Ken you is of course sheet are pools that of And across amount will But an with year. for XXXX terms and key some the happened say of $X I course into the really history of our would is very are not only deployments, before

losses. have produce strong to see returns continued of very, also there you with very as We low can course along

in other business. slides, in that go I just on seeing couple the on will the things Before comment a I am I of

in and this that we gap the lower doing new we fit There investors between to product years across clients finance that really institutional so we on for and a with $XXX designed new we in high-return that have of now the investors now number solution yesterday, XX% this the end-to-end already a quite all, well. offering Advantage new These like traditional done and market and as final the have gap a this and from post-settlement million call was a in to core litigation this a this sort of fills closing matters. which our to both Fund Burford assets fund, of to fund fund is announced and new fund, just anticipate a in number large comes fund landscape fund fund the we the And First we raised finance the annually. a of returning been fund investors. have like, that legal range returning the we to endowments are that we structure roughly XX% complete as activity

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with fall the So available of did fund XXXX. of having we are pleased a it first quite us. that close during to We new

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sure see post-COVID finally is lots world is its I that this to is and with am resuming nice the lives pace. that’s consistent of thing other The your

the fact industry have going conferences, about talked have are we stall largely things of the seen some not for in-person last that example, which like work legal for we So, on, us. the years significant in resuming. first lawyers at I tomorrow of Those fact since that large I marketing XXXX. gathering in-person opportunities about have are attend And Europe in for to indeed, the right am now been in couple

So really and to world excited back having life. things I come am the to see reopening

We assets deployments. Slide emphasizes Burford-only our to we deployments love shareholder-driven So from XXXX. is opposed X, money, do highlight basis. presented keep turning significant just that what to finance effectively sheet as the is We really money. setup we other that to those we the Burford-only balance to core for obviously that funds. the double And activity this where this our on sheet produce in make more our on sheet. a high funds are the more our And activity Burford-only and you and profit private on new profitability and year-over-year business for our lot balance carried we see business, In a reality And when is litigation most reach directly terrific a the profits sheet. but applies our is cash to make private balance we This the future. And in words, in balance I for again would all-time shareholders we doing invest here Burford-only lot assets. a the for a

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of and period-to-period of COVID the XXXX no I that So, there we on. when seen and COVID-based uncertainty. And that uncertainty. really is that’s is unpredictability have There to delays, always amelioration things what been talk see to going past. in the you has course for present question added COVID during about And the hoping are are variability that some two

not that is in in court the first the litigation process. process the litigation delays seeing The itself, process, but you are

documents file in you engage piece of the by parties process exchange to litigation, and in long And the witness COVID. when So go so what of happens trial. a is ever interrupted on, before discovery, was quite testimony time for long and that a you

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case, literally them to saw go documents. we meaningful Petersen were the delays and and government offices the people could Argentine in retrieve produce schedule the into example, in Petersen closed For because the in discovery case, not

tactical. on delays kind and are these some proffer reason for Defendants of any often to And seek seize delay delay. of

well. there taking was that so as of probably some along went advantage COVID And there

to those their can’t As expect more the world to can’t that not reopens, distress, clients documents. reasonably this Courts sympathetic we produce be And idea past those witnesses significantly that variant depositions the planes unless you and through reducing. are year. any would get not on causes delays to going sit are get just another and longer continue

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that So, the arisen have jurisdiction trials. absence as with what COVID of jury of pools prioritizing backlogs and of and unavailability the courtrooms, and often to criminal distancing we because this calendar trial certainly do see on those also in are we see backlogs by the physical of varies the jurisdiction,

adjudications. they are the the through as much so, has see incredibly the work is to important It’s now to It’s instead timing. will to happening because longer this the the We snake is were Those don’t on rates. taking loss is, of take do are side This so that And of are through of the will low right to are confirmation cases. But make way jurisdiction. backlog curve. bad system the see COVID. jurisdiction cases things emphasize low just you But that on to way discontinuing. is what that rates, We continue we before with that of nothing simply is by sustainable vary cases. in slide all this some nothing these They substance we do the happening wrong loss curve the its and not nothing than time certainly not that sustainable. side will that in their if

to we of work future the And more fruition. come our optimistic own vintages yet some existing our so not as rapidly have are begin way we that about what to holds through

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size the to the Jon great talk and taken not prominent that the large Burford’s Molot. given and of watch portfolio about in on has more hopefully, is but to Petersen overshadows that something So, strength here the prominence that portfolio, of rest

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the portfolio? the lots in way. down turned matters have have rate of XX% think over about We still pretty right. It’s a incredible, of got annual built, And that come when of years. compound We you that what growth X what’s we diversity our

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all. it’s whether in a contract arbitration, America, So we it treaty, an disputes, have to of an whether with in business could been it’s intellectual firms Europe, whether it international be litigation could property, it lots And dispute lots diverse it’s portfolios different law want it’s investment state there who take there torque, that have be long the and of global have could different and topics for we jurisdictions. that reach companies and under of whether practices North cover be diverse be it investor

this optimistic really returns. So its me matters large future portfolio a what about because included in be the we’ve with very love them. delivers And diverse built that’s what future business that’s and makes

think grown we claim to little If monetizations one the XX, have more And to but past, way we’ve and is in bears which turn families. about talk going I’m Slide a discussion. I the that you talked portfolio, about

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things counterparty, the remove money to the finance accounting that’s will to as would Sometimes realized be portion to receivable expense amount to expect a the then matter it the receive come to very their and with from that its when like of litigation they they corporate of General the us expenses And defray budget same monetize numbers. associated progress, of they resolved profitably. Counsel’s an a

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where quite can we’ve good matter. out is you’ve And more about just a investments like like, to so to and that as do have the areas past there down them. continue continue And in the we to putting that world you that’s it ourselves litigation the investments, think used competitors to of than And be a pursuing because Two, competition, comes in are that in claims And this learned can that to not our on so capital as add us on are market of we improves, today this can a a play we’re the do. the on set attractive get expertise know but often from well distinct a advice, really is in based provider watch strategy. position of matter, it. them risk. from And able advantages particular of knows we because a strategy, that area, capital. here we way, value the three strategic it you will provider and very know I we price as just, settlement done we based nobody only in that counterparties and their we the steeped actually always One like that we we smart area. to number be say and what into investments not if name different build value add is double progress basically seen a take others in the a I’d matter we profitably, And come we in risk/reward we to terms the claimant clients there really come capital, distinguish better prospects, as and the of

way us out understand it which but about more this so on to a do wheel learn to understand. you’re We operating The you more there to We efficiencies are third capital put already putting that new that the learning you all when is in is cases. a risks, it efficiency, more love risk it area If just and the you’ve case very right? capital important on is the already time, again. the reinventing then and it’s and out know to done provides underwriting much strategy efficient gotten leverage it,

company may portfolio of frankly, have want even other strategy a well. as throw someplace claims I families the seen though they but sufficiently, of does the risk. of of other our part that’s does say has, the it taking book, policy the be can as well. risk our mitigate of not And we’ve core and at there mentioned, claims claim what outset, our be That our a diversity into broadly else as could that a should diminish So cross-collateralized claim sometimes portfolio to the I that the these company – continuation has grown

Okay.

the our vintages significant portfolio age. at And XX, So spend looking I’d recent more from potential the to couple our to which matters of like large remaining vintages, very turning of to talking many Slide by history a resolve. see and you’ll larger, about have minutes these potential,

is of pre-XXXX ongoing you represents capital the vintages you at of are you XXXX, from deployed many are bullet to look which have on large, there of some only at But costs million and them of remaining resolved. slide, the so. point, the $XX this total left, the see among see by From deployed only less matters. vintages, XXXX you’ll see XXX%, If X% older

out say study more So the is is in most out that these have don’t This money that matters, to vintages business. scaled grown in that one our matter that and where just been profitable a case Chris our alluded showing those we’ve such really to of is a couple old older ended up was vintages portfolio not time significantly that’s returns. recent very for delivering minutes ago up of quite long a that attractive

value grown. on have not since vintages they as still recent adds portfolio we Chris down quite and that in is that only before more is resolutions, put from large as we’ve resolved to than the of that later real later but are the you because value there COVID. So things the as delays slowed the And quickly we’ve have they COVID would value there, expected, attractive alluded have of that the might today, but have they have to are very these coming fact

in future. left there for the optimistic is So very makes potential a there lot me of and

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been tool. internal it’s very a So useful

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but what that given a We’re to a shown investors metric. seems it not that our data point accuracy measure want will earnings is like in that be, thought experience, useful of our know, was a we this would or it forecasting

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some in And portfolio that nonetheless, portfolio. events, we an you’d in models COVID matters down that surprising increase slowed more continue the opportunities been progress, it’s have and the in see even if that progression, as capital value so but put surprising projected the our to there out it’s their not not investment attractive as of are

We’ve bullish And me what a of that’s future about so portfolio and the for very space. in the very portfolio. on tremendous us legal assets optimistic really built our leads

been to able this matters And with them. over in done. to Particularly, very Ken. will that, I a commitment stay both continue said, on have how I’m Chris it and And we’ve those and with underwrite year. deployment in of to team monitor our with top increases bring pleased turn and that’s significant very, and as the We levels

add well. good everybody. as today I’ll Well, thank morning you, John, afternoon to to and here Pleased my be and

and minutes just financial likely mention have before So enhancements already wanted to slide some of I this, results, seen which made on a updates we’ve to take the you’ve a reporting, website. don’t and that our few our financial for I our discussing but

the of part, is capital has financial recognition rules, including Petersen in reside. that result revision out which end the we’ve first want assets. where at called I is under increase we’ve that this third-party was as for of to like applied now very a Colorado no most change, But the assets there valuing claims our Burford-only shareholders’ as claim and which IFRS One U.S. is GAAP. we been well, point U.S. to GAAP our to past And this is fair also things the rules similar that As entity. a in subsidiary said, the periods revenue prepared The this period the is consolidating reflecting Investments $XXX that IFRS report also are sold consolidating corresponding are Petersen on an on liability of to there interest impact million. is sheet, balance equity the from XX.XX% sold. of in the result, a And change

in non-controlling is consolidated financial will on which, equity therefore, liability to The of focus third-party GAAP attributable reported statement. to shares, IFRS interest assets, a holders few report shareholders’ we within financial equity the which change But under in also a interest. interest. are reported as remove had been U.S. now equity-based our ordinary results again, to in shareholders’ as a metrics, changes Third-party that presentation when

relates the our and that is to exchange you, the remainder financing currency go in asset of For versus capital that instance, reported provision point are detailed of line the and the one will included income foreign I is But rather assets And another on, at changes. have on provision gains portion difference is through foreign losses other income. our in Reconciliation capital now of expenses right-of-use is reported very and impact and costs. operating these than liability to in section a we report, each table annual lease goes a now

go can presented. XX, got some So to we’ve turning we now where numbers, the Slide financial metrics to if

$XX our So which at diluted $X.XX low range month. year, provided we per we of ordinary net the attributable shares of reported business share, in last million for update to the loss a was end or the

strong for had we said, a business. year new Chris As

a with to that in solid capital limited line realizations slower result, for both related adjustments gains case gains sales. as the discussed the provision that progress therefore, and fair the However, and value XXXX we included he realized Still, reported levels income the year. Petersen

just we from with apart previous performance-related from highlights line mention, recovery detail, but page, operating asset in other the to item. Some this more will get into were years, in expenses generally

liquidity, at robust and share $X.XX $XXX securities marketable was which and of our value Burford-only equivalents remain diluted at book per consists cash million. year-end and tangible Our

from that can BOF-C, management Slide top to fund, periods. continue year in sovereign funds Burford-only reflecting X% finance you season. increased litigation earn about graph, moving million, management as asset wealth during with income We for primarily $XX management most asset our fund of on investment income last arrangement to XX fees as their So our core from a managed talk asset income, to to see the the

fees So the year. last was unchanged contributions returns. Strategic earn back of European $X recognize fees capital are therefore, preferred generally their in XXXX, have and and performance we Since funds from those most BAIF after fee on we BOF, earn Value waterfalls, income received Performance of Fund. investors million our

BOF-C on into X, $XXX our asset fund, forward. XXXX forward. fund performance that from as did considered fees a a as Burford-only X were from deployments performance the the of Burford close to third-party And the forward, Also, models in much sheet Advantage $XXX primarily and on and Funds to balance in our fund million new going the continue a indicate $XXX indirect mentioned, partners assets these BAIF. includes in related to Chris million position Fund fund While Fund, called going going mentioned, basis partners, fees investments. we Jon be Performance be as Burford’s the be provision could will as one capital million acquisition. from BAIF just we were GKC and XXXX management income fees BOF. to And legacy earn related fees Advantage

light turning at and head our XX Moving salaries to for The XXXX, benefits should there. and the interest payments. line in that are blue the future in and reporting and the changed piece when Almost expense also performance. on restricted see which XXXX. can most compensation categories the and the recovery all generally employees you The you, expect their relates a and as Burford move Slide and our GAAP, to annual bars performance portfolio to we while adoption compensation performance-related and These ours to middle that line black asset comp should which the equity items reporting bars, trend portion left, are legacy notably annual legacy the aligns related stock with graph expenses. U.S. In we The we the amounts be two of in in of believe primarily benefits incentive to line expense. count graph in include the back costs incentive lower program, amount function participated recovery we business acquired shareholders. the we’re compensation with those asset of than in conjunction operating grow in the in our in the of business. bars, expenses, with represented of overall And the black

to related to to only a OpEx exclude Over In claim emphasize And expect we as then if X.X% portfolio, costs the investments to we this wide to graph larger is OpEx on monetizations and percentage continue which continue the you fact, and right, asset that year. time, Burford-only was we recovery, families. continued prior compared up would slightly group of XXXX. to as decrease the tick look if make at percentage down in the to

XX, Slide to moving So liquidity slide. our

the of to cash which $XXX at million. cash, marketable assets and robust which consists equivalents Our latter remained end Burford-only management we ‘XX of previously liquidity position, securities, of referred as at the

marketable which the us larger would consist our without rise. increased our to earn the our liquidity fixed right and taking that of in high income incremental an from considerably to the proportion a in approach assets yield market than on liquid quality managed U.S. fixed note are in are predominantly risk top years. chart rates Those of one of see assets as This on that managing we expect and and You’ll money to liquid undue interest past income securities assets benefits the managers short-term enables liquidity by

have have the million to Although is laddered. relatively operating of able exceeded inflows. have The in delay paid bit believe and been the the receipts arise, bit related opportunities single figure balance. as did we current and note of of recognizing our from settlement level a expect Due somewhat we costs about $XXX a to the our settlement this just of year-end to retire of have certainly due August, to cash majority for we turning up maintenance result billion liquidity offering high our in and $XX now were year they to unpredictable XX, last new growth be in covered last April. $X on receivables the some And our a financing to case XXXX, bond a outstanding. Slide order and expenses deployments support included maturity take historic but cash receipts while receivable debt this the ample due liquidity judicial maturity is our from we a still advantage next isn’t in concluded We do receivables that of XXXX, million we debt And A million XXXX. when to well proceedings, slide, is other is in unrelated year. from in our The collected payment or over also believe nature our that of year-end. over million were that, levels. $XX prudent hand do £XX After up we until debt since coming

test was was and ratio well X.XXx in covenants Our debt-to-equity levels to UK X.X the of of bond. incurrence tangible our equity ratio well below bonds of at our U.S. XX%, our XX% of year-end on total debt Xx below and the

to opportunistic Chris and back that, with remain while I’ll actively And to long-held remarks. should expect it low be our a business the to flows, liabilities view this level. relatively at an that debt. manage leverage, cash We variability some our will continue issuer for turn have of some given of leverage maintain concluding should We

And from than that be with Ken. a Burford-only have sets we year generating had happens which the where the particularly balance across much, sources. in least turning on operating very sheet for we to XXXX, cash And Slide Ken summing were multiple shareholder YPF. what at up needs delays access the said, financing. liquidity robust our of XX, for and future with to growth And and year new really good of heard. enough business both something cover we capital more to of some strong and Despite a should assets we business those basis, very to you’ve Thanks noted, generation, expenses up all We cash, as XXXX discussed, benefit. the pleased just as maximize

future we’re And bullish your So today very holds. questions. with me the about we what where that, let invite and sit

comes from Chiaverini [Operator ahead. Wedbush David, go please David first question Securities. Instructions] Our from

outlook provide commitments Hi. the great and commitments additional Any relating Thanks you and see details, helpful. rebound thanks And it’s deployments. for all the strong can new and very in for the to commentary deployments?

pipeline you and to legal don’t really in in say We that industry. it’s activity see going we certainly guide know. the But as fair I think forward, the

interesting an civil think will in and some XXXX. the cases report, had the fallen that be, lows cases to bankruptcy statistics in U.S. showing provided litigation new both will in and the management filings statement particular, notice about in we annual general in question X-year you I in courts,

system. scarcity of there thousands suggest, that some demand does of away, cases. all, there fall just does you limitations. a not litigation mean during pent-up what stale, in a of cases, lots that and the hasn’t the statute file civil to And not litigation. time out many conduct years people basically mean, underpinning But there and the still were and of it’s courthouse. it a that Now, of first their of have lows case to the lots is probably is X-year before COVID it before it rushing runs in taking lots goes because gone hundreds That

historically no has quarter business, given of demand in will stimulus like that some amount of see on the decent the Whether amount feel the in I quarter, with have to does to we pent-up happen pent-up us to it have going system. knowing, And it of next while the happens be over there this little interesting lows is it’s given way or demand. what insolvencies, gone So, next historic then a but which system.

that where Now, a start and stimulus withdrawing it inflation to see insolvencies. and stands reason in will world are in trend to a interest you of seeing you increases, downward both rate reversal that

a you And Can opportunities, talk you that these and coming you to have debt may extent standpoint? extent do little talk maturity $XX additional million helpful. see you the That’s the can up. a to about the to can have $XXX spoke from capacity you limited away that bit liquidity of cash, capacity business your you turn about some Great. – given about talk million liquidity, about you your capacity

business doing. choose. would alternative want But We do. both our something anticipate we also we certainly to us, paths to that it’s It’s and have think available clear multiple that liquidity that we the we so strong for adequate not if is

partner. fund management a XXXX, risk exposure short a matter. the period our an was sovereign this deals in wasn’t that in did that liquidity For extra time, of we a you with example, saw one a that did But we of $XXX very took constraint. of million wealth arrangement It larger and we in sidecar

liquidity-based prepared sheet. And but so that the put we simply the was to an matter size example, that balance the were again, on of not

have business. we options liquidity think on of away numerous I turning a front, position to not the be So, in

last – for about ahead. go one you then me. Great. talk Can And

No, go ahead.

last in competitive me it’s entrants So, landscape, or existing is for changes more aggressive? whether new any any one competitors the becoming the

all We a the competition That about We In here. boats use business. talked a thing. the more well. words, rising think having competition in conventional in in think And makes tide mainstream, good been that’s positive. is net there always multiple lifts legal that players there of finance marketplace other and as has say a statement we changed. this management We what hasn’t it’s and more the

enter, that business are the world once else. do litigation in is out don’t do seen I landscape, actually lots changes commercial and figure them pretty traditional no, we to in trying a People enter have around especially do them go the so always hard that to of think financing. turn this seismic And and competitive they of then at lots something of and well and

So, you U.S. the landscape. of market market. notably into we you there But hedge at in the certainly mass fund end and have certainly that dynamic into commercial U.S. change litigation to that things that been don’t Most a market, sit really dollar extent, flowing have in some the capital consumer the we high do. and terms into of dramatic really hasn’t the competitive finance where continues

those, So are thanks, and going intersperse questions. for we telephone and David, to webcast

Roberts questions. Julian posed pair has of webcast And Jefferies so from from a the

asset? first Advantage think be will the Advantage not shorter Fund, the for than assets the the sheet The being the Fund balance duration that And about of in I is necessarily. average to answer

Advantage standalone pretty think range same the you will the And sheet balance Certainly, shorter in at time, at as I see a wide you when sheet. on on But individual same the Fund. of range from have durations look shorter some well. will matters litigation have the durations traditional claims. inception, We of funded asset matters than duration duration matters balance the be we of those

looks about Thinking we them and some shortening Julian’s To North that three American And made of have in of that what recoveries sure the overall we assets, the parallels and I family. this predict antitrust an it’s question Jon. with extent other that claims on now portfolios. is the do draw it but food between am the positive in fund. the two would for beverage days, claim claim families, like duration not progress ones them am sure early not families. I So, of other maybe can way we post-settlement is And

go Our those I over the near increase And ROIC the ROIC recoveries don’t and on cases. portions know it indeed, from But if last see where before X% might at ROICs, asset exactly this it that – return been those that portfolios lot. against an of we will put to period, point, a rest we it, principal there. where actually concluded made. didn’t you it happened you have in it We resolved here table, from you the what of the partially causes any to second up that’s look of report actually all of of we total likely in bunch and number is which you little conclusion on sometimes saw. to Julian, But half your a And figure pass absolutely of just around little point if Jon, a it? dip a move until out in we to that’s cash to a then you that the Jon, bit. I for one correct, and got go see

with a multiple lawsuits surprising It’s have you it and recovery claims, these that of but Sure. important ROICs multiple with a Having basically settlements as income many left at time to ROICs to would we before say attractive the claim family and it’s how involves multiple we the because recognize the accounting piece that settling of cents have the develops market Chris, on settlement levels, says IRRs, begin or litigation predict dollar activity, saving times up also, defendants, substance. would not associated that I this large to uncertainty that the one note indicator one potential come – early decides it are with really from are our end group the settle for large can cost long that of to with will would settle settlements And trial. of claims you group hesitate a you takes different on a as plaintiffs, the a of one particular said, plaintiff give out some defendant decides we those and some plaintiff with earlier to process. but defendants and lower to

successful, to So, you larger eve push end recoveries. more haircut are of taking with the the are or of a up whereas go trial you you plaintiffs way all and the generally if

risk facts along in does the are really to the as individual parties the of of depend people’s the how what damages cases the are, individual you and far it So, process. upon appetites

to is there putting Whether of So, first to starting the for sort observation suggest fact market that noise there some But for proceeds progression, depends that about the when these accounting generally, will numbers, you be is are tell seeing resolve Chris continuing settlement how of settlement levels these allocating aside accountants really described, the versus some even are to I in large families. does the cost a wouldn’t case that are you where the want rely are extent on profit. coming number, because accounting yet the it. the can’t across claims the it

I another we the So, question for think phones. are ready from

Hamilton Our question next Securities. from comes from James, go Numis James ahead. please

presentation Thank have may. you got you the or I three if for and two I the for thank time.

is historically into else all therefore what highlighted it of and Firstly, obviously be probably IRRs as appreciate sort too the ROIC to IRR of Is expect XX% we XX, should sort ROE duration up or expect the the provision the there profit the to put compares you that put turn should the be but I at IRR. you two? the direct on have a on there haven’t translate a the close you of guidance, you higher being trending because difference XXX%, be well? your in capital sort that there to there trending equal, a to portfolio, between on to and duration to Slide up and material major difference you gets you –

confidence that ability guidance. avoid at this not moment going duration. don’t that not comment outcomes, just be have to our you we past, well. shown to the this in we on – add that said as It’s in profit to done Jon, predicting it’s can has quite we historically trying to we that? modeling to as the were It’s Jon just accurate predict while have the have Well, at are

and just and at the that we it both would a that of come when come how I the just not in add tend and much to And necessarily of for the looking question, earlier in will we modeling, ROICs lower is but – to probabilistic come in higher at each of said I inception I matter, in are as in. earlier attractive IRRs, as it Yes. would complexity all ones. high possible to outcomes update matters IRRs, it money response with will

end higher having fed only of go if get into up portfolio. Some when higher you across you very all a being that outcome. But the our large get is IRRs, you distance, but a you a entire ROIC, model even and to the aggregated where not then being it’s

various we of able particular in is explained what the and when we on correlation hindsight matters is predicted nature, and have seen, said, aggregate, is Not right. the as been I all as come depart to the predict. Investor ROICs going any across hardest know and And before So, that between don’t – look multiple the one have what’s model what for it predicting large Day, to predicting at modeled duration. account the into have It’s permutations them thing model we average sufficient and cases only number is could the those as isn’t in durations. mentioned from delivered, to I to took is But with matter a of going happen particular because, by duration matter, the Chris model because the true. its any

gave where what IRR giving you it split valuable are – from we we would as if model, be We comfortable the as quite point was that the feel the at out we the that not ROIC. the

a mind. fund, could just up if couple points wouldn’t I of of to turn If clear Okay. you the sort

money a is the into under there funds the end guidance is as statement splitting XX%, I broadly with comment that IRR ever I underlying clients. also believe around XX% management top the seen. on there that a Firstly, highest on the your note yield would you of have translate I And super obviously, point where in And after XX-XX But are how you does long returns that? And I the economics to returns believe just and arrive was being take those was sort to and of deploy don’t shared. sort normal do million? materialize. the of it’s sort I you secondly, likely normal what wondering, super just the $XXX wondering expect of to the

bit negotiations is the non-IRR answer complicated non-compounding, on based simple on also number. in So, the individual other and the little XX% a that is question, words, first a the fact –

to And the match out. so offering. a would Like, gaming urge have you not using But to some fill IRRs. to you math this – we simple have gap to between spend I that – wouldn’t try time do our to get non-compounding I any in to the in fund people are

So, returning assets not there. to we are higher trying put in

IRRs the what the assets have provision, is that for the normal trying going spot sweet we teens, not high make of that frankly, super those fund structure after. that’s unduly of normal of We to this are the given the And are to and that in sure take to on return. it’s reason risk super generate to level is an incentivized we try fund, are

preserve there. to think you we in to and really as a – allocate the look going approach we opposed tend flexibility historic balance our funds how I sizes projection, about And forward. we sheet at governor as have funds funds, but between jumbo don’t if our that’s funds to raise to the kinds these to when of timing, the So,

to size the also are a are all X try fund but comfortably is we done has this up, So, so investment we trying only done to that be certainly year. in X-year we investment these And period before period. not

have you some on As from the seen fund. plus of something footnotes million matters already $XX we of this for the in done have order

sort gives that of pace. the So, of sense you a

Thank you.

then us. of days. two Great. about our much, welcome, webcast you usual, just Thank at will go quick very and questions the James. other very the lots Jefferies and with tomorrow of different I conference, engage participating available to am at ways. to shares presenting example, we the But as final take your overstaying investors let of in all And are have sorts conference, we risk from for in you opportunities week, next the we

rule, against done that to or a are business we on in where the moment. the our do the underlying the asset the to you is exposure more Russia then Russian not reputational in me that bit to And just webcast tiny no. enforcement. ability enforcing to answer not the sanctions And have concerned integrity question matter. as short for Griffiths, give So, sort the of of to Ukraine approach which risk? any a need Burford one never subject question or we that rule-of-law-based – of systems is be website frankly, has matters and from and So, about nuance, a questions where we court Trevor are and little take Have fair does assets questions, our let is

client So, Russia, to we assets would if not we do those enforce were a where deals. would approached by we need in against

We were assets that assets, Russian-controlled deals matter, a have, that Russia. is, to done regimes. against from time-to-time, policy enforce as needing consistent where we the are outside But Russian with of sanctions

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consistent that Howlett. is a business. policy And significant that, screen, I so a is of a moved question the on YPF And from our said, – part not but just as my underlying Richard goals, then question with

of likely but is has the interposed. the about would is the various way risk that that that any of And something piece Argentina ever-present litigation. it’s terribly judge the arguments defenses one prefer Argentina of is which the lose basis so scenarios legal affirmative the that bearish we we understand you we could an in to would certainly odds, on timetables the while scenario the that mid receiving please settlement? lose, Well, On YPF think that case, is win will various the don’t ultimately argument I bearer cash most pay, and that your for you Argentina outline related here

that’s see particularly the As most summary have we scenario. judgment think strong, provided are we from rebut expert the bearer those you to don’t filings, arguments and But them. will evidence

of this These have a not what really that lot cash that is strategic and And before, area, that’s the would very an to front, said that In broad about. are enforcement we settlement terms and talk case very publicly as the reason we a prepared for specific. on payment happen are things and isn’t brush thing.

activities for past in of know who past, play against our out to have us years. followed so years the Argentina and not paid seen investors’ say investors history even its paid And has, of that a It’s one discuss is plans the ultimately for know an What will the that – Those amount like you should in things for that it’s the that settlement aggressively, years long successes before Those have negotiating And we has not in will you them and It’s will in that judgment, then I used the into sphere. the favor. public in other are I tactic – that though judgments. reduced payment them. ultimate things a have would they playbook. and we be are that a had would same have enforcement and discussing that put litigating undertake we them interest or have a to Argentina losing those granted place fall the of are lost. for of you Argentina us

table the not it’s doesn’t a perseverance, is Argentina. the like because of Argentina assets huge some it’s And that for a does stockpile Argentina countries like So, of able unpaid – resource-rich judgments. bring of of big example, have enforce people the lot to to judgments. economy of because Venezuela, And have of building against that stockpile exporting. been up is reason a threat doesn’t to un-played ultimately, being with outside able other a Argentina have

for we I I Burford. questions about and we much what And probably say. we forward months And dialogue minutes with over and is are will attending is as think six for your case. continued for thank weeks pass. given that is we their further a time, So, can support and moment level to everybody at that, think, not say But that, the of and specific the high look again want you for the with can more I there to

everyone. Thanks

you Thank concludes call. joining. today’s for This

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