Last checked at 19 Jun 2023 07:00
19 June 2023
Litigation Capital Management Limited
("LCM" or the "Company")
Resolution of Investment
Litigation Capital Management Limited (AIM:LIT), an alternative asset manager specialising in dispute financing solutions internationally, announces a successful resolution on an investment forming part of LCM's Fund I portfolio of investments.
Successful Award in Arbitration Investment
LCM's investment and funding related to a dispute in London Court of International Arbitration proceedings. LCM provided funding and support to the claimant in those proceedings, which recently received an award in its favour. The subject matter, findings and funding terms remain subject to confidentiality.
Initially, the investment was expected to complete within a short time frame from the commencement of funding, however, the matter was delayed due to a number of external factors. This protraction enhanced the returns to LCM and Fund I investors, details of which are highlighted in the table below:
*AUD$m | Investment performance | LCM performance metrics | Fund I performance metrics |
Invested capital | 9.2 | 2.3 | 6.9 |
Investment return | 36.7 | 9.2 | 27.5 |
Success fee | 21.7 | 5.4 | 16.3 |
Total revenue | 67.6 | 16.9 | 50.7 |
ROIC on investment | 635% | 635% | 635% |
Performance fee* | - | 15.1 | (15.1) |
Gross profit | 58.4 | 29.7 | 28.7 |
ROIC after performance fees | 635% | 1291% | 416% |
\* The investment returns are subject to change based on the prevailing FX rate and timing of distribution
Patrick Moloney, CEO of LCM, commented: "The Resolution of this investment demonstrates two important features of LCM's business and its investment strategy. First, it validates the skillset of our investment managers in undertaking a rigorous due diligence exercise and accurately predicting the final outcome of a large and complex commercial dispute resolved through arbitration. Secondly, it is an example of an investment which we had originally expected to resolve in a prior financial period. The return metrics generated by this investment clearly demonstrate how returns are enhanced notwithstanding a delayed resolution. Not only were we extremely happy with the outstanding investment returns, but also LCM's funded party was grateful for the financial support beyond the originally contemplated investment period. "
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