Litigation Capital Management Ltd Resolution of Investment (1170D)
19 Juin 2023 - 8:00AM
UK Regulatory
TIDMLIT
RNS Number : 1170D
Litigation Capital Management Ltd
19 June 2023
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 Fund I performance
metrics 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
Canaccord (Nomad and Joint Tel: 020 7523 8000
Broker)
Bobbie Hilliam
Investec Bank plc (Joint Tel: 020 7597 5970
Broker)
David Anderson
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
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END
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