Litigation Capital Management Ltd Resolution of investment (0393V)
03 April 2023 - 4:00PM
UK Regulatory
TIDMLIT
RNS Number : 0393V
Litigation Capital Management Ltd
03 April 2023
3 April 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 the realisation and cash receipt of an
investment which forms part of LCM's Fund I portfolio.
On 20 December 2022, LCM announced the delivery by the High
Court of a Judgment in favour of LCM's funded party, the Liquidator
of CGL Realisations Limited, formerly known as Comet Group Limited.
Pursuant to the Judgment, an amount of approximately GBP110m was
paid into Court by the Respondent. The Respondent sought and
obtained permission to pursue an appeal against that Judgment,
which is progressing through the Court system.
In the interim, the liquidator procured a judgment protection
insurance policy. Subsequently, an application was made to the
Court for payment out of court of sufficient monies to pay LCM's
entitlements pursuant to the Litigation Funding Agreement as well
as the cost of defending the appeal. This enabled the liquidator to
finalise its obligations to LCM, bringing about a conclusion to
this investment. The use of judgment protection insurance provides
a mechanism for the liquidator to reduce the overall cost of
litigation finance by utilising funds from the Judgment at first
instance. Additionally, it allows LCM's investment to be
realised.
The investment returns, which are subject to change based on
exchange rates at the time of distribution, are as follows:
AUD$m Investment performance LCM (c o-funded ) performance metrics Fund I performance metrics
Invested capital 8.4 2.1 6.3
----------------------- -------------------------------------- ---------------------------
Investment return 22.0 5.5 16.5
----------------------- -------------------------------------- ---------------------------
Total revenue 30.4 7.6 22.8
----------------------- -------------------------------------- ---------------------------
ROIC on investment 261% 261% 261%
----------------------- -------------------------------------- ---------------------------
Performance fee - 4.9 (4.9)
----------------------- -------------------------------------- ---------------------------
Gross profit 22.0 10.4 11.5
----------------------- -------------------------------------- ---------------------------
ROIC after performance
fees 261% 496% 183%
----------------------- -------------------------------------- ---------------------------
Patrick Moloney, CEO of LCM, commented: "This is the second
substantive Resolution of a Fund I investment. The Resolution
provides a further example of how the use of managed third party
investment funds leverages the return to LCM's balance sheet and
its equity investors."
For further information, please visit www.lcmfinance.com or
contact:
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/Katie Hopkins lcm@tavistock.co.uk
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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