Does a partial settlement mean the entire investment has been realized?

No. Only the settled part is realized; the rest of the capital stays at risk. Burford's definition of concluded assets includes 'partially concluded legal finance assets where we have received some proceeds (for example, from a settlement with one party in a multi-party case) but where the case is continuing with the possibility of receiving additional proceeds.' Its return metrics on concluded assets therefore include partly finished matters.

How is cost allocated to a partial realization?

By judgment about the realized part's share of the whole. For single cases, Burford allocates cost 'depending on the significance of the settling party to the overall claim'; for portfolios, 'depending on the structure of the individual portfolio arrangement and the significance of the resolution,' a method that 'mimics the way an investor would allocate cost basis across a portfolio of security purchases.' The allocation determines the realized gain reported.

Why does the allocation matter?

Because it changes reported returns without changing cash. In the worked example below, allocating 40% of cost to a $12 million settlement reports a 200% ROIC on that part; allocating 70% reports about 71%. The cash is the same; the reported return, and the cost left on the unresolved part, differ.

How common are partial realizations?

Common in multi-defendant and portfolio matters. Burford's vintage table separates assets that are concluded from those 'partially realized - concluded' and 'partially realized - ongoing.' AltStreet's Omni Bridgeway review notes that its fund multiples 'cover completed and partially completed investments within each fund,' and that Fund 5 Series I had 30 completed and 92 active investments.

What remains at risk after a partial realization?

The unallocated cost and any further commitments. If the remaining defendants win, or the rest of the portfolio fails, the remaining cost is lost, and an early partial gain can overstate the matter's final return. Fund investors should track remaining exposure alongside reported partial gains.

How should an investor read returns that include partial realizations?

Ask for returns on fully concluded matters separately from partially concluded ones, for the cost still allocated to the unresolved parts, and for the method of allocation. A track record heavy in early partial wins can look better than the eventual full results.

Partial Realizations

Litigation Finance & Legal Claims

Definition

A partial realization is cash received from part of a funded matter, such as a settlement with one defendant in a multi-party case or one resolved case in a portfolio, while the rest of the matter continues. Burford reports a partial resolution 'when agreed as a partial realization and allocate[s] a portion of the deployed cost to the partial resolution depending on the significance of the settling party to the overall claim.'

Why it matters

Partial realizations let funders report progress on long, multi-party or portfolio matters, but they require an allocation of cost that is a judgment, and that judgment shapes reported returns. An early settlement with one defendant can show a high realized return while most of the capital still depends on the rest of the case. For an investor, the risk is reading a partially realized track record as a finished one. Ask how cost is allocated, what exposure remains on partly realized matters, and how returns look on fully concluded matters alone.

Common misconceptions

•A partial settlement is not a realized investment, because the rest of the capital remains at risk.
•Cost allocation is not mechanical, because it depends on judgments about the settling party's significance.
•A high return on a partial realization is not the matter's return, because the remaining cost can still be lost.
•Concluded-asset metrics are not limited to finished cases, because Burford includes partially concluded assets.
•Fund multiples are not all-capital returns, because they can cover completed and partially completed investments only.

Technical details

Worked example (illustrative): one defendant settles

Funder deployed $10.0 million against three defendants.

Defendant 1 settles; funder receives $12.0 million.

If 40% of cost ($4.0 million) is allocated: realized gain $8.0 million, ROIC 200%; $6.0 million of cost remains on defendants 2 and 3.

If 70% of cost ($7.0 million) is allocated: realized gain $5.0 million, ROIC about 71%; $3.0 million remains.

If defendants 2 and 3 win, the matter's final result is $12.0 million on $10.0 million, 1.2x, whatever the allocation.

What to track on a partly realized matter

Cash received to date.

Cost allocated to the realized part, and the method.

Cost and commitments remaining on the unresolved part.

Fair value of the unresolved part.

Expected timing of the rest.

What AltStreet's reviews and filings show

Burford 2025 10-K: concluded includes partially concluded assets and settlements paid over time; cost allocation by significance of the settling party (single cases) or of the resolution (portfolios).

Burford 2025 10-K vintage table: rows for concluded, 'partially realized - concluded,' 'partially realized - ongoing' and ongoing assets in each vintage.

AltStreet's Omni Bridgeway review: fund multiples cover completed and partially completed investments; Fund 5 Series I had 30 completed and 92 active investments; FY2022 to FY2026 investments 0% to 37% complete by vintage.

Burford's Form 10-Q for September 30, 2026 reports an 81% ROIC and a 25% IRR on its concluded and partially concluded balance-sheet assets since inception, on $4.01 billion of cumulative realizations across 303 concluded assets, with a weighted average life of 2.7 years weighted by realizations.

Questions about partial realizations

How much of the track record comes from partly realized matters?

How is cost allocated, and who decides?

What cost and commitments remain on those matters?

What are returns on fully concluded matters only?

How have early partial gains compared with final outcomes?

How investors apply the term

Investors usually apply this term by tying the definition back to the controlling documents and then asking which cash flows, rights, restrictions, or valuation assumptions it changes. A useful review looks at the term alongside fees, leverage, liquidity, reporting frequency, and manager discretion rather than treating it as a standalone concept.

The practical diligence test is simple: identify who benefits if the assumption is wrong, who has control when conditions change, and what evidence the investor receives after closing. Terms that cannot be reconciled to documents, cash movements, and monitoring data should be treated as marketing shorthand until proven otherwise.

Frequently asked questions

Does a partial settlement mean the entire investment has been realized?: No. Only the settled part is realized; the rest of the capital stays at risk. Burford's definition of concluded assets includes 'partially concluded legal finance assets where we have received some proceeds (for example, from a settlement with one party in a multi-party case) but where the case is continuing with the possibility of receiving additional proceeds.' Its return metrics on concluded assets therefore include partly finished matters.
How is cost allocated to a partial realization?: By judgment about the realized part's share of the whole. For single cases, Burford allocates cost 'depending on the significance of the settling party to the overall claim'; for portfolios, 'depending on the structure of the individual portfolio arrangement and the significance of the resolution,' a method that 'mimics the way an investor would allocate cost basis across a portfolio of security purchases.' The allocation determines the realized gain reported.
Why does the allocation matter?: Because it changes reported returns without changing cash. In the worked example below, allocating 40% of cost to a $12 million settlement reports a 200% ROIC on that part; allocating 70% reports about 71%. The cash is the same; the reported return, and the cost left on the unresolved part, differ.
How common are partial realizations?: Common in multi-defendant and portfolio matters. Burford's vintage table separates assets that are concluded from those 'partially realized - concluded' and 'partially realized - ongoing.' AltStreet's Omni Bridgeway review notes that its fund multiples 'cover completed and partially completed investments within each fund,' and that Fund 5 Series I had 30 completed and 92 active investments.
What remains at risk after a partial realization?: The unallocated cost and any further commitments. If the remaining defendants win, or the rest of the portfolio fails, the remaining cost is lost, and an early partial gain can overstate the matter's final return. Fund investors should track remaining exposure alongside reported partial gains.
How should an investor read returns that include partial realizations?: Ask for returns on fully concluded matters separately from partially concluded ones, for the cost still allocated to the unresolved parts, and for the method of allocation. A track record heavy in early partial wins can look better than the eventual full results.