New US$50m Credit Facility

22 February 2021

Litigation Capital Management Limited

("LCM" or the "Company")

New US$50m Credit Facility

Litigation Capital Management Limited (AIM:LIT), a leading alternate asset manager of disputes financing solutions, is pleased to announce that it has secured a US$50 million credit facility (the "Credit Facility") with Northleaf Capital Partners ("Northleaf") to provide the Company with additional investment capital.  Northleaf is a global private markets investment firm, with experience in the litigation finance sector.

The Credit Facility provides LCM with significant additional capital flexibility to enable the Company to grow its direct investment portfolio, its asset management business and to supplement balance sheet capital in relation to the co-funding opportunities of the LCM Global Alternative Returns Fund launched last year (the "GAR Fund").

The Credit Facility, which is secured against LCM's assets, is available for general corporate purposes, and has an overall term of four years. The coupon comprises a LIBOR based rate of 8% per annum together with a profit participation calculated by reference to the profitability of LCM's direct investments. In all circumstances, the overall cost of the facility is capped at 13% per annum. The Credit Facility can be drawn down during the first two years of the facility. The facility otherwise contains the usual financial covenants and reporting conditions of a facility of this nature.

Patrick Moloney, CEO of LCM, commented: "The securing of this Credit Facility is a hugely significant development in LCM's growth. The Credit Facility, together with LCM's existing resources, provides LCM with flexible capital structure for the foreseeable future to meet our most conservative assessment of the expected demand for LCM's litigation finance needs, as well as LCM's GAR Fund co-funding obligations, including any anticipated potential upsizing."

Jonathan Moulds, Chairman of LCM, commented: "The Board is delighted to partner with Northleaf, a high calibre capital provider with a presence in our major markets and deep expertise in litigation funding, at a time when LCM is witnessing an uplift in litigation finance applications as a result of a number of factors including the extraordinary uncertainty facing global economies. These conditions, combined with the flexibility the Credit Facility, provides LCM with an excellent opportunity to accelerate growth."

Enquiries

NOTES TO EDITORS

Litigation Capital Management (LCM) is an alternate 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