Burford Capital LtdBUR
Burford Capital Ltd Segments Disclosure
Segment reporting
ASC Subtopic 280-10, “Segment Reporting,” establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available. The chief operating decision maker (“CODM”), who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Chief Executive Officer and Chief Financial Officer, together.
The CODM assesses the performance of the operating segments based on segment income/(loss) before income taxes, which consists of the significant measures of the reportable segments’ financial performance that includes segment revenues, consisting of capital provision income/(loss) plus/less third-party interests in capital provision income, asset management income/(loss), marketable securities income/(loss) and interest and other income/(loss), less segment operating expenses, consisting of compensation and benefits, general, administrative and other expenses and case related expenditures ineligible for inclusion in asset cost. The CODM uses this metric to assess operating segment performance, for purposes of making operating decisions and assessing financial performance, which informs the CODMs allocation of resources. The Group excludes the proportional operating results that are attributable to third-party limited partners in its private funds, partners and minority investors, as the CODM does not consider them for the purposes of making decisions to allocate resources among operating segments or to assess operating segment performance. Although these amounts are excluded from segment income/(loss) before income taxes, they are included in reported consolidated income/(loss) before income taxes and are included in the reconciliation that follows.
The Group’s computation of segment income/(loss) before income taxes may not be comparable to other similarly titled measures computed by other companies because all companies do not calculate segment income/(loss) before income taxes in the same fashion.
Operating revenues directly associated with each segment are included in determining its operating results. Operating and other expenses that are not directly attributable to a particular segment are based upon allocation methodologies, including time estimates and other relevant usage measures. Due to the integrated structure of the Group’s business, certain costs incurred by one segment may benefit the other segment. A segment may use the information produced by another segment without incurring an intersegment charge or intersegment income.
The CODM does not review information regarding total assets on an operating segment basis but rather on a total segments (Burford-only) basis. The accounting policies for segment reporting are the same as for the Group as a whole.
The Group has two operating segments that are also its reportable segments and provide legal finance products and services to the Group's clients: (i) Principal Finance and (ii) Asset Management and Other Services. The Principal Finance segment allocates capital to legal finance assets from the Company's balance sheet, primarily as capital provision assets, and in limited scope through interests in private funds managed by the Company. The Asset Management and Other Services segment manages legal finance assets on behalf of third-party investors, and the Company provides other services to the legal industry, for both of which it receives fees.
Beginning for the year ended December 31, 2024, the Group renamed its Capital Provision segment to Principal Finance and allocated revenue, expenses and assets from other corporate to the Group’s two reportable segments with no change to the Group’s total segments (Burford-only) numbers. The change in our allocation methodology as of December 31, 2024 was due to the amounts relating to these operating and non-operating activities previously presented as other corporate, forming part of what is used internally to measure and evaluate the performance of the reportable segments. As a result of this change, the Group also recast certain previously reported amounts to conform with the change in allocation of revenue, expenses and assets to each reportable segment as noted below.
The tables below set forth certain information with respect to the Group’s consolidated statements of operations by reportable segment for the periods indicated.
| Year ended December 31, 2025 | ||||||||||||||||||||||||||||||||
| Reconciliation | ||||||||||||||||||||||||||||||||
| ($ in thousands) | Principal Finance | Asset Management and Other Services | Total segments (Burford-only) | Reconciling items(1) | Total consolidated | |||||||||||||||||||||||||||
| Capital provision income/(loss) | $ | 330,937 | $ | — | $ | 330,937 | $ | 145,876 | $ | 476,813 | ||||||||||||||||||||||
| Plus/(Less): Third-party interests in capital provision assets | — | — | — | (99,142) | (99,142) | |||||||||||||||||||||||||||
| Asset management income/(loss) | 36,024 | 36,024 | (29,712) | 6,312 | ||||||||||||||||||||||||||||
| Marketable securities income/(loss) and interest | 28,471 | — | 28,471 | 289 | 28,760 | |||||||||||||||||||||||||||
| Other income/(loss) | — | 617 | 617 | — | 617 | |||||||||||||||||||||||||||
| Total revenues | 359,408 | 36,641 | 396,049 | 17,311 | 413,360 | |||||||||||||||||||||||||||
| Compensation and benefits | 107,770 | 20,472 | 128,242 | — | 128,242 | |||||||||||||||||||||||||||
| General, administrative and other | 32,301 | 5,748 | 38,049 | 313 | 38,362 | |||||||||||||||||||||||||||
| Case-related expenditures ineligible for inclusion in asset cost | 7,268 | — | 7,268 | 7,377 | 14,645 | |||||||||||||||||||||||||||
| Operating expenses | 147,339 | 26,220 | 173,559 | 7,690 | 181,249 | |||||||||||||||||||||||||||
| Other expenses | ||||||||||||||||||||||||||||||||
| Finance costs | 151,015 | — | 151,015 | — | 151,015 | |||||||||||||||||||||||||||
| Foreign currency transactions (gains)/losses and other expenses | (2,615) | (326) | (2,941) | 5 | (2,936) | |||||||||||||||||||||||||||
| Total other expenses | 148,400 | (326) | 148,074 | 5 | 148,079 | |||||||||||||||||||||||||||
| Income/(loss) before income taxes | 63,669 | 10,747 | 74,416 | 9,616 | 84,032 | |||||||||||||||||||||||||||
| 1. Reconciling items include the proportional operating results that are attributable to third-party limited partners and minority investors in consolidated entities, including BOF-C, the Strategic Value Fund, the Advantage Fund, Colorado, the EP Funds and other entities. | ||||||||||||||||||||||||||||||||
| Year ended December 31, 2024 | ||||||||||||||||||||||||||||||||
| Reconciliation | ||||||||||||||||||||||||||||||||
| ($ in thousands) | Principal Finance | Asset Management and Other Services | Total segments (Burford-only) | Reconciling items(1) | Total consolidated | |||||||||||||||||||||||||||
| Capital provision income/(loss) | $ | 388,124 | $ | — | $ | 388,124 | $ | 163,942 | $ | 552,066 | ||||||||||||||||||||||
| Plus/(Less): Third-party interests in capital provision assets | — | — | — | (42,384) | (42,384) | |||||||||||||||||||||||||||
| Asset management income/(loss) | — | 44,627 | 44,627 | (36,287) | 8,340 | |||||||||||||||||||||||||||
| Marketable securities income/(loss) and interest | 24,578 | — | 24,578 | 436 | 25,014 | |||||||||||||||||||||||||||
| Other income/(loss) | — | 3,051 | 3,051 | — | 3,051 | |||||||||||||||||||||||||||
| Total revenues | 412,702 | 47,678 | 460,380 | 85,707 | 546,087 | |||||||||||||||||||||||||||
| Compensation and benefits | 101,758 | 21,901 | 123,659 | — | 123,659 | |||||||||||||||||||||||||||
| General, administrative and other | 25,012 | 5,440 | 30,452 | 573 | 31,025 | |||||||||||||||||||||||||||
| Case-related expenditures ineligible for inclusion in asset cost | (1,057) | — | (1,057) | 1,858 | 801 | |||||||||||||||||||||||||||
| Operating expenses | 125,713 | 27,341 | 153,054 | 2,431 | 155,485 | |||||||||||||||||||||||||||
| Other expenses | ||||||||||||||||||||||||||||||||
| Finance costs | 135,593 | — | 135,593 | — | 135,593 | |||||||||||||||||||||||||||
| Foreign currency transactions (gains)/losses and other expenses | 1,244 | — | 1,244 | 177 | 1,421 | |||||||||||||||||||||||||||
| Total other expenses | 136,837 | — | 136,837 | 177 | 137,014 | |||||||||||||||||||||||||||
| Income/(loss) before income taxes | 150,152 | 20,337 | 170,489 | 83,099 | 253,588 | |||||||||||||||||||||||||||
| 1. Reconciling items include the proportional operating results that are attributable to third-party limited partners and minority investors in consolidated entities, including BOF-C, the Strategic Value Fund, the Advantage Fund, Colorado, the EP Funds and other entities. | ||||||||||||||||||||||||||||||||
| Year ended December 31, 2023 | ||||||||||||||||||||||||||||||||
| Reconciliation | ||||||||||||||||||||||||||||||||
| ($ in thousands) | Principal Finance | Asset Management and Other Services | Total segments (Burford-only) | Reconciling items(1) | Total consolidated | |||||||||||||||||||||||||||
| Capital provision income/(loss) | $ | 896,371 | $ | — | $ | 896,371 | $ | 445,552 | $ | 1,341,923 | ||||||||||||||||||||||
| Plus/(Less): Third-party interests in capital provision assets | — | — | — | (279,263) | (279,263) | |||||||||||||||||||||||||||
| Asset management income/(loss) | — | 63,712 | 63,712 | (56,070) | 7,642 | |||||||||||||||||||||||||||
| Marketable securities income/(loss) and interest | 12,067 | — | 12,067 | 141 | 12,208 | |||||||||||||||||||||||||||
| Other income/(loss) | — | 4,392 | 4,392 | — | 4,392 | |||||||||||||||||||||||||||
| Total revenues | 908,438 | 68,104 | 976,542 | 110,360 | 1,086,902 | |||||||||||||||||||||||||||
| Compensation and benefits | 196,623 | 24,461 | 221,084 | — | 221,084 | |||||||||||||||||||||||||||
| General, administrative and other | 29,219 | 3,564 | 32,783 | 873 | 33,656 | |||||||||||||||||||||||||||
| Case-related expenditures ineligible for inclusion in asset cost | 14,671 | — | 14,671 | 1,825 | 16,496 | |||||||||||||||||||||||||||
| Operating expenses | 240,513 | 28,025 | 268,538 | 2,698 | 271,236 | |||||||||||||||||||||||||||
| Other expenses | ||||||||||||||||||||||||||||||||
| Finance costs | 99,136 | — | 99,136 | (1) | 99,135 | |||||||||||||||||||||||||||
| Foreign currency transactions (gains)/losses and other expenses | (21,737) | — | (21,737) | (15) | (21,752) | |||||||||||||||||||||||||||
| Total other expenses | 77,399 | — | 77,399 | (16) | 77,383 | |||||||||||||||||||||||||||
| Income/(loss) before income taxes | 590,526 | 40,079 | 630,605 | 107,678 | 738,283 | |||||||||||||||||||||||||||
| 1. Reconciling items include the proportional operating results that are attributable to third-party limited partners and minority investors in consolidated entities, including BOF-C, the Strategic Value Fund, the Advantage Fund, Colorado, the EP Funds and other entities. | ||||||||||||||||||||||||||||||||
For the year ended December 31, 2023, the Group recast $12.1 million of marketable securities income/(loss) and interest, $43.0 million of operating expenses, $2.7 million of finance costs and $(21.7) million of foreign currency transactions (gains)/losses from other corporate to the Principal Finance segment. In addition, the Group also recast $9.3 million of operating expenses from other corporate to the Asset Management and
Other Services segment and $1.8 million of finance costs from Asset Management and Other Services segment to the Principal Finance segment.
The table below sets forth specified line items with respect to the Group’s consolidated statements of financial condition by reportable segment as of the dates indicated.
| Year ended December 31, 2025 | ||||||||||||||||||||||||||||||||
| Reconciliation | ||||||||||||||||||||||||||||||||
| ($ in thousands) | Principal Finance | Asset Management and Other Services | Total segments (Burford-only) | Reconciling items(1) | Total consolidated | |||||||||||||||||||||||||||
| Cash and cash equivalents and marketable securities | $ | 599,011 | $ | 21,666 | $ | 620,677 | $ | 35,246 | $ | 655,923 | ||||||||||||||||||||||
| Other assets | $ | 24,348 | $ | 167,309 | $ | 191,657 | $ | (117,914) | $ | 73,743 | ||||||||||||||||||||||
| Due from settlement of capital provision assets | $ | 164,804 | $ | — | $ | 164,804 | $ | — | $ | 164,804 | ||||||||||||||||||||||
| Capital provision assets | $ | 3,912,194 | $ | — | $ | 3,912,194 | $ | 1,697,755 | $ | 5,609,949 | ||||||||||||||||||||||
| Total assets | $ | 4,811,081 | $ | 215,004 | $ | 5,026,085 | $ | 1,615,087 | $ | 6,641,172 | ||||||||||||||||||||||
| 1. Reconciling items include the proportional operating results that are attributable to third-party limited partners and minority investors in consolidated entities, including BOF-C, the Strategic Value Fund, the Advantage Fund, Colorado, the EP Funds and other entities. | ||||||||||||||||||||||||||||||||
| Year ended December 31, 2024 | ||||||||||||||||||||||||||||||||
| Reconciliation | ||||||||||||||||||||||||||||||||
| ($ in thousands) | Principal Finance | Asset Management and Other Services | Total segments (Burford-only) | Reconciling items(1) | Total consolidated | |||||||||||||||||||||||||||
| Cash and cash equivalents and marketable securities | $ | 508,031 | $ | 12,650 | $ | 520,681 | $ | 28,269 | $ | 548,950 | ||||||||||||||||||||||
| Other assets | $ | 23,711 | $ | 151,770 | $ | 175,481 | $ | (114,475) | $ | 61,006 | ||||||||||||||||||||||
| Due from settlement of capital provision assets | $ | 183,651 | $ | — | $ | 183,651 | $ | 207 | $ | 183,858 | ||||||||||||||||||||||
| Capital provision assets | $ | 3,571,224 | $ | — | $ | 3,571,224 | $ | 1,672,693 | $ | 5,243,917 | ||||||||||||||||||||||
| Total assets | 4,397,954 | 190,377 | 4,588,331 | 1,586,694 | 6,175,025 | |||||||||||||||||||||||||||
| 1. Reconciling items include the proportional operating results that are attributable to third-party limited partners and minority investors in consolidated entities, including BOF-C, the Strategic Value Fund, the Advantage Fund, Colorado, the EP Funds and other entities. | ||||||||||||||||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.