Litigation Capital Management Limited (LON:LIT), the alternative asset manager specialising in dispute financing, said the successful conclusion to a court case it backed in Australia would result in a A$4mln profit for the business.
LCM said it had provided A$1.6mln of financial backing and will receive A$5.6mln if the debt is paid promptly. The investment was part of the company’s direct portfolio and so was funded exclusively from the balance sheet.
This judgment was obtained 22 months, which is earlier than the 10-year average time to completion of 27 months, the group added.
Chief executive Patrick Moloney said: “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.”