Last checked at 20 Jul 2023 07:00
20 July 2023
Litigation Capital Management Limited
("LCM" or the "Company")
Progress on Fund I investment
Litigation Capital Management Limited (AIM:LIT), an alternative asset manager specialising in dispute financing solutions internationally, announces a positive development on an investment within its Fund I portfolio.
LCM has funded a claim advanced in respect of a breach of a bilateral investment treaty and brought under the International Centre For Settlement Of Investment Disputes (ICSID) Convention. An ICSID tribunal has issued an award on jurisdiction, liability, damages and costs in favour of LCM's funded party.
The quantum of the award entered in favour of LCM's funded party is USD$ 76.7m (c. AUD$ 109m) plus interest and costs.
This means that LCM's funded party has succeeded in the claim. If the award is not subject to challenge and is not satisfied the dispute will move to an enforcement stage. We will assess any further funding requirements once the enforcement strategy has been finalised.
The issuing of the award in favour of LCM's funded party has significantly de-risked this investment.
LCM has invested approximately AUD$ 5.7m (USD$ 4m) in this dispute to date. In line with our usual practice LCM's returns are calculated as a rising multiple of invested capital over time. As such we cannot calculate our overall return on this investment until it concludes. The investment however is no longer attended with liability and quantum risk as that has been decided. Final performance will be announced to the market after conclusion of the investment.
Patrick Moloney, CEO of LCM, commented: "This is a significant and positive development in this investment. Subject to any challenge to the very favourable award we now move to an enforcement stage, after which we will see the benefit of the leveraged returns available from our Fund Management strategy."
Enquiries
Litigation Capital Management | c/o Tavistock PR |
Patrick Moloney, Chief Executive Officer |
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Canaccord (Nomad and Joint Broker) | Tel: 020 7523 8000 |
Bobbie Hilliam | |
Investec Bank plc (Joint Broker) | Tel: 020 7597 5970 |
David Anderson | |
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Tavistock PR | Tel: 020 7920 3150 |
Tim Pearson | lcm@tavistock.co.uk |
Katie Hopkins |
NOTES TO EDITORS
Litigation Capital Management (LCM) is an alternative asset manager specialising in disputes financing solutions internationally, which operates two business models. The first is direct investments made from LCM's permanent balance sheet capital and the second is third party fund management. Under those two business models, LCM currently pursues three investment strategies: Single-case funding, Portfolio funding and Acquisitions of claims. LCM generates its revenue from both its direct investments and also performance fees through asset management.
LCM has an unparalleled track record driven by disciplined project selection and robust risk management.
Currently headquartered in Sydney, with offices in London, Singapore, Brisbane and Melbourne, LCM listed on AIM in December 2018, trading under the ticker LIT.
www.lcmfinance.com