Successful judgment in Australian investment

11 August 2021

Litigation Capital Management Limited

("LCM" or the "Company")

Successful judgment in Australian investment

Litigation Capital Management Limited (AIM:LIT), an alternative asset manager specialising in dispute financing solutions internationally, announces a successful outcome in a court proceeding in Australia, for which LCM has provided funding, where judgment has been delivered wholly in favour of the plaintiffs (funded parties). This investment forms part of LCM's Direct Investment Portfolio and is 100% funded from balance sheet.

LCM has provided funding for this dispute of approximately AUD$1.6M to date.  If the judgment debt is paid promptly, LCM will generate revenue of approximately AUD$5.6M and profit of approximately AUD$4.0M from this investment.   This judgment has been obtained 22 months following the commencement of funding, which is earlier than the 10-year average time to completion of 27 months.

In the event that the judgment debt is not paid promptly, and LCM continues to invest in this claim (through the enforcement of the judgment and/ or the funding of any appeal), LCM is likely to generate revenue in excess of this amount as the pricing structure of the financing arrangement is a multiple of invested capital increasing over time.    

In the event that the defendant appeals, LCM is confident that the judgment entered in favour of the funded party is likely to be retained. 

Patrick Moloney, Chief Executive Officer of LCM, comments: "Obtaining this early judgment is an excellent example of a high performing investment for LCM but also of the use of disputes finance by a sophisticated party to manage both capital and risk.  We expect this investment to yield higher than our average 10-year returns profile both in terms of IRR and ROIC when finalised."

Enquiries

NOTES TO EDITORS

Litigation Capital Management (LCM) is a specialist alternate asset manager and leading international disputes financing solutions provider which operates two business models. The first is direct investments made from LCM's permanent balance sheet capital and the second is fund and/or asset management. Under those two business models, LCM currently pursues three investment strategies: Single-case funding, Corporate 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