Burford Capital's Q2 2025: Unraveling the Contradictions on YPF Gains, Portfolio Growth, and Case Timelines

YPF settlement and realized gains, Burford's portfolio diversification and growth strategy, YPF case timeline and unrealized gains, unrealized gains drivers, case resolution timeline and workload are the key contradictions discussed in Burford Capital Limited's latest 2025Q2 earnings call.



Strong Financial Performance and Portfolio Growth:
- Burford Capital reported a significant increase in net income, up 5x year-to-date, with a 63% increase on a quarterly basis.
- The growth was driven by robust new business commitments, which were 71% higher than the comparable 2024 period, and strong performance of the existing portfolio.

New Business and Portfolio Expansion:
- The company saw a significantly higher level of new definitive commitments in the second quarter compared to previous periods, with $361 million committed, marking the largest quarterly commitment in the last nine quarters.
- This expansion was supported by Burford's global footprint and the quality of its litigation and arbitration team.

YPF Case Progress and Financial Impact:
- Burford reported progress in the YPF case, with a tentative oral argument date set for October and a victory in the Southern District of New York securing the turnover of Argentina's YPF shares.
- The case contributed to unrealized gains in the quarter, although other factors like duration and interest rates also played a role in the financial impact.

Market Access and Debt Issuance:
- Burford completed a successful debt issuance of $500 million, which was upsized and priced more tightly against indices than previous issuances.
- This reflects the company's strong market support and demonstrates its competitive cost of capital compared to its competitors.