CIN.L Regulatory News (CIN)

City of London Group plc (COLG)

COLG announces further third party Funds

COLG is pleased to announce that its subsidiary Therium Capital Management Limited (TCML) has closed a third limited liability partnership ("LLP3") raising £4.3m from High Net Worth investors. LLP3 will invest in a portfolio of third party funding claims.

The closing of LLP3 comes only six months after TCML announced the closing of its second Limited Liability Partnership. Following the successful conclusion of investments in LLP1 and LLP2 last month, despite the short period LLP1 and LLP2 have been running, Therium has already returned a sum equal to 90% of the capital invested in LLP1 (closed May 2010) and a sum equal to 51% of the capital invested in LLP2, with both LLPs carrying forwards a substantial pipeline of ongoing case investments.

Neil Purslow, one of the founders of TCML said:

"We are extremely pleased to announce the closing of our third partnership and are particularly pleased to note that a number of those who participated in our previous partnerships, given the performance of their earlier investments, have elected to invest further sums in this third partnership. This is a clear endorsement of our business model and our track record to date in litigation funding. We currently have a strong pipeline of cases for funding and anticipate being able to develop a portfolio of claims for LLP3 very quickly."

In addition to raising money through LLPs, TCML continues to hold discussions with a number of institutional investors and family offices about managing funds on their behalf.

COLG is also pleased to announce that its subsidiary Credit Asset Management Limited (CAML) has also now secured initial funding facilities in excess of £3m from three major Financial Institutions and continues to discuss further facilities and arrangements with similar banks and institutions.

Eric Anstee, Chief Executive of COLG said:

"These developments are very positive for the investment platforms and a strong endorsement of our business model. Clearly lending to SMEs and the Professions is core to the Government's strategy to achieve economic growth and we are well placed to act as a distributor for funds into this market place."

29 November 2011

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Notes to Editors:

City of London Group plc (COLG) is an investment company, with a wide range of national and international investments. A public company since 1986, COLG has had a full London Stock Exchange listing since August 1996 (LSE symbol CIN).

The Company's strategy is to build a quality Financial Services Group centred on Specialist Financing and Alternative Fund Management. The Company believes there are particular opportunities in the SME and professional services sectors as major national and foreign banks limit new lending to these borrowers. It therefore seeks to identify and exploit product niches and business models in these sectors where they are supported by strong day to day management teams, providing initial equity, working capital and seed funding for those teams.

The Group seeks above-average performance in growth and income via a prudent mix of low, medium and higher-risk investments. It holds a legacy portfolio of income stocks, offering a high degree of security, which are balanced by a higher risk portfolio, which is primarily focused on the minerals and resources sector, where the Board has particular experience.

Since the final quarter of 2009, COLG has developed four specialist financing funds, pledging significant seed funds to Therium Capital Management Limited, a third party Litigation Funder, Credit Asset Management Limited and Professions Funding Limited, which provides asset backed finance and working capital loans to professional practice firms and finally Trade Finance Partners Limited, a trade finance provider to the SME market.