Successful settlement in the Carillion claim

20 February 2023

Litigation Capital Management Limited

("LCM" or the "Company")

Successful settlement in the Carillion claim against former auditors KPMG

Litigation Capital Management Limited (AIM:LIT), an alternative asset manager specialising in dispute financing solutions internationally, is pleased to announce a successful outcome on its Carillion claim ("the claim").

On 19 May 2021 LCM announced it had entered into an agreement to provide a litigation finance facility to fund a claim in the Commercial Court of the High Court of Justice of England & Wales against the Carillion group's former auditors, KPMG. The claim arose from KPMG's conduct of its audits of the Group's financial statements for the period 2014 to 2016. The claim was funded directly from LCM's balance sheet (25%) and from the LCM managed Global Alternative Returns Fund ("Fund I") (75%).

A confidential settlement was reached between the parties and as a result LCM is expected to receive the following returns after an investment period of 25 months:

\* The figures above are subject to change based on the receipt of cash and FX rate at the time

This is the first investment from Fund I that has reached settlement. The Company received a $AUD 3.2m performance fee from Fund I as a result of the settlement.

Carillion was the largest corporate collapse in the building and construction industry in UK history and we are pleased to have supported the underlying creditors who suffered financially from the collapse.

Patrick Moloney, CEO of LCM, commented: "We are pleased that the first substantive resolution of a Fund I investment has generated returns consistent with our historical track record. In addition, the overall returns to LCM's balance sheet, including performance fees following the conclusion of our first settlement from Fund I demonstrates the strengths of our asset management business model and showcases our thorough due diligence and case selection processes."

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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