But of course, what shareholders care about is what’s still in the portfolio, and Jordan talked about additional commitments and deployments and what’s going out now, like is the business generating opportunities and does it have assets that have the ability to generate revenues in the future? And that’s what those gray shaded lines are, the gray shaded bars, and you see those are some very large numbers. That is what’s out in our assets that we hope will produce the kind of results that the red bars reflect from the things that have already resolved. So, I really do think we’ve got a great portfolio that just continues to generate revenue and it’s doing it at a more rapid clip. Probably some of those gray shaded bars would have turned red earlier had it not been for COVID slowdowns.
But now that the COVID slowdowns are behind us and the courts have worked through or are working through their backlogs and processing cases on steady place – steady rate, I think we stand poised to generate more revenues in the future. Okay. Turning to Slide 9, YPF. I would just pause and say how gratifying it is to see the business model work so effectively to vindicate the rights of shareholders, who had a contractual entitlement to a tender offer in 2012. And I think back to speaking for the first time in 2015 to the insolvency receiver from Spain who was charged with managing a company that was the 25% holder of YPF and that clearly had an entitlement to a tender offer to formulaic price in 2012 and a price that was much, much higher than depressed trading price as a result in large part of Argentina’s action.
And he faced a real dilemma that there was real value for these shareholders and how was he going to actually tap that value. How is he going to do it when he knew it was going to involve years and years of very expensive complex litigation. He didn’t have the expertise or the financial resources to fight that fight. So, how was he going to vindicate the shareholder’s rights. And he had the foresight and the judge who approved his plan to go ahead and conduct an auction and look for the best partner to finance and manage this really large piece of litigation against a sovereign nation that has great experience hiring top-notch lawyers and using litigation process to delay payment. And I’m just so gratified that he chose Burford, which was I think the only entity out there that combined the expertise in litigation and law with the expertise in finance to bring those two together to put – assemble a top-notch legal team, the best legal team in the world for this case to manage the case, to work with the lawyers in the trenches on every issue year-in year-out down to the final trial result.
And for us to deliver this kind of result just really validates the business model and in fact, I was gratified that the judicial opinion did note that of course, when shareholders, particularly they – Petersen and also Eton Park are faced with this kind of litigation adversary and this much expensive risk, they shouldn’t be penalized for having looked to outside sources to finance and manage litigation. And so, I’m just very pleased with the outcome here. Now, of course, everybody wants to know what comes next. There are some things that we do know of what comes next. There’ll be a judgment entered in short order. There is the potential for appeal and Argentina has already said it will appeal to the U.S. Court of Appeals for the Second Circuit, that’s an appeal as of right.
But in the United States, Federal Court judgments, once they are final, they are enforceable absent if the defendant posting a bond or obtaining a stay. And after the appeal to the Second Circuit, the Supreme Court has discretionary, reviews a small fraction of cases that where there is a petition for review, and in this case, you’ll recall years ago, Argentina did seek Supreme Court review on the issue of sovereign immunity, and the Supreme Court declined review and decided to let the Second Circuit and Judge Preska’s decision stand that this case could go forward in the United States. And there was an opinion from the Solicitor General of the United States saying this is something the United States has an interest in being resolved in the United States because it involved New York Stock Exchange shareholders indicating their contractual rights against the entity that issued a – did an IPO and is an SEC-registered company in the United States.
So, that we do know is going to happen. As Chris said, we can’t really talk to you much more just as over the years, investors wanted to know a lot more about our litigation strategy, what did we expect in terms of damages, how long did we think it would take, what was our – behind the scenes, what was going on in the litigation and we just didn’t think it was in anyone’s interest for us to go into that kind of detail and the same is true about how we take the next steps toward translating this judgment into cash for Petersen and Eton Park as well as for our shareholders. So, with that, I will turn it back over. Thanks very much.
Jordan Licht: Thanks, Jon, and I’m on Slide 10. On the top of the page, you’ll see a outline of capital provision income which I mentioned is significantly higher in the first half versus last year’s first half. And that’s true even excluding the impact of YPF. We’re approaching double the first half of 2022. Dissecting the number a bit, our realized gains in the first half represented a total of $94 million, which includes $59 million from the second quarter of this year. That compares to $27 million of realized gains in the first half of 2022. On the bottom is our asset management business, which continues to perform and we continue to reap the rewards of using the funds to support both our balance sheet efforts and our clients.
While there is movement period-to-period given the waterfall structures and the impact of fair value on the income that’s recognized, the cash receipts this year-to-date have doubled compared to last year year-to-date at $23 million. Moving to Page 11, will outline the expenses for the second quarter. At first glance, they seem a bit higher than Q2 from the previous year, but it’s important to separate out some of the cash and non-cash expenses. For example, the total comp line looks like it’s gone up $11 million, but in cash terms, it went up by $1 million. The rest of this expense is accrual expense driven by share price movement and increases in the asset values of the portfolio. And the annual incentive compensation line is one which will true up at the end of the year.
