Last checked at 20 Apr 2021 08:00
20 April 2021
RBG Holdings plc
("RBG" or the "Group")
LionFish records first successful litigation investment
RBG Holdings plc (AIM: RBGP), the professional services group, is pleased to announce that LionFish Litigation Finance Limited ("LionFish") has recorded its first successful litigation investment since its launch.
In May 2020, RBG launched LionFish as a new player in the third-party litigation funding market, investing in cases run by law firms other than the Group's own, Rosenblatt Limited ("RBL"). LionFish is led by experienced Managing Director, Tets Ishikawa.
While the return is not material to the Group's forecast financial results, the successful investment provides a gross two times money return over and above invested cash and confirms that LionFish can deliver significant returns from its portfolio of investments.
Part of the Group's approach to litigation finance is to sell a percentage of its participation rights in the cases LionFish invests in, and this reported return is pre-investor payout.
As of 31 December 2020, LionFish has received 240 enquiries for finance, and seven cases have been invested in. LionFish has made a cash investment of £1.8 million across the seven cases, with a total capital commitment of £4.9 million. The expected average investment duration is around two years.
Nicola Foulston, CEO, RBG Holdings plc, said: "This is a proof-of-concept moment for our litigation finance strategy. The success of this first investment demonstrates that LionFish can make a significant contribution to the Group, but also deliver substantial returns to investors who acquire participation rights. We believe this will make LionFish an even more attractive prospect. Congratulations to Tets and the LionFish team."
Enquiries:
RBG Holdings plc Nicola Foulston, CEO
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N+1 Singer (Nomad and Broker) Shaun Dobson / Alex Bond (Corporate Finance) Tom Salvesen (Corporate Broking) | Tel: +44 (0)20 7496 3000 |
SEC Newgate (for media enquiries) Robin Tozer/Tom Carnegie | Tel: +44 (0)7540 106366; rbg@secnewgate.co.uk |
About RBG Holdings plc
RBG Holdings plc is a professional services group, which includes one of the UK's pioneering law firms, Rosenblatt Limited ("RBL"), which is a leader in dispute resolution.
RBL provides a range of legal services to its diversified client base, which includes companies, banks, entrepreneurs, and individuals. Complementing this is the Firm's increasingly international footprint, advising on complex cross-jurisdictional matters. RBL's practice areas include banking & finance, competition & regulatory, corporate, dispute resolution, employment, financial crime, financial services, insolvency & financial restructuring IP/technology/media, real estate, serious & general crime, tax resolution, and white-collar crime.
The Group also provides litigation finance in selected cases through a separate arm, LionFish Litigation Finance (UK) Limited ("LionFish"). LionFish finances litigation matters being run by other solicitors in return for a significant return on the outcome of those cases. As such, the Group has two types of litigation assets - RBL's own client matters, and litigation matters run by third-party solicitors. LionFish is positioned to be a unique, alternative provider to the traditional litigation funders.
The Group also owns Convex Capital Limited ("Convex Capital"), a specialist sell-side corporate finance boutique, based in Manchester. Convex Capital is entirely focussed on helping companies, particularly owner-managed and entrepreneurial businesses, realise their value through sales to large corporates. Convex Capital identifies and proactively targets firms that it believes represent attractive acquisition opportunities.