Burford Capital's Strategic Repositioning and the Path to S&P Global BMI Inclusion

In the high-stakes arena of alternative finance, Burford Capital has emerged as a standout performer, leveraging its unique litigation finance model to deliver record results in 2023. With consolidated revenues tripling to $1.1 billion and earnings per share surging 19-fold to $2.74, the firm's operational efficiency and risk management have drawn institutional attentionBurford Capital Reports Record 2023 Results^[1]. These metrics, coupled with a 34% increase in tangible book value to $9.85 per share, underscore a company in strategic ascentBurford Capital Reports Record 2023 Results^[1]. Yet, the question remains: Can Burford's recent performance and proactive investor engagement translate into inclusion in the S&P Global Broad Market Index (BMI), a benchmark that could amplify its institutional visibility?

Strategic Repositioning: From Niche to Mainstream

Burford's 2025 Investor Day, held in New York City, marked a pivotal step in its repositioning. The event, accessible via live webcast and replay, showcased the firm's evolving business model, emphasizing transparency and long-term value creationBurford Capital Limited - Strategic Update at 2025 Investor Day^[2]. By inviting new investors and analysts to engage with its executive team, Burford signaled its intent to broaden its shareholder base beyond traditional litigation finance circlesS&P Global Broad Market Index (BMI): What It is, How It Works^[3]. This aligns with S&P Global's BMI criteria, which prioritize liquidity and market capitalization—metrics that Burford appears to meet. The firm's float-adjusted market cap likely exceeds the $100 million threshold, while its 2024 net realized gains of $219 million suggest robust trading activityBurford Capital Reports Second Quarter 2024 Results^[4].

Institutional Visibility and Credit Rating Affirmation

S&P Global Ratings' October 2024 affirmation of Burford's 'BB' credit rating with a stable outlookS&P Global Ratings affirms Burford Capital Ltd.^[5] further bolsters its institutional appeal. While the rating itself is not a direct pathway to BMI inclusion, it reflects the firm's ability to manage counterparty risks—a critical factor for index eligibility. The BMI's emphasis on market depth and stability means that Burford's creditworthiness, combined with its liquidity profile, positions it as a candidate for inclusion in the next review cycle.

The BMI Conundrum: Criteria vs. Reality

The S&P Global BMI requires companies to demonstrate sustained liquidity, measured by the 12-month median value traded ratio (MVTR)S&P Global Broad Market Index (BMI): What It is, How It Works^[3]. Burford's 2023 revenue growth and 2024 portfolio realizations—up from $201 million in 2023—suggest that its trading volumes may now meet these thresholdsBurford Capital Reports Second Quarter 2024 Results^[4]. However, the absence of an official announcement complicates analysis. It is plausible that Burford's inclusion is under consideration, given its alignment with BMI's criteria and its proactive investor relations strategy.

Conclusion: A Strategic Bet on Visibility

While no definitive confirmation exists, Burford's financial performance and strategic initiatives create a compelling case for BMI inclusion. For institutional investors, the firm's potential addition to the index could drive broader adoption of litigation finance as a mainstream asset class. For Burford, the stakes are high: inclusion would not only validate its business model but also provide access to a broader pool of capital. As the firm continues to refine its narrative through events like the 2025 Investor Day, the market will be watching closely.