Litigation Capital Management: A growth opportunity yet to register on the market’s radar

LCM are an alternative asset manager specialising in disputes financing solutions internationally. Through two business models, direct balance sheet and funds management, we create value through three primary investment strategies. These include single-case, portfolios and acquisition of insolvency claims. LCM has an unparalleled track record, driven by effective project selection, active project management and robust risk management.

() Ltd said assets under management grew 34% to A$336mln (GBP178mln) in the year to June 2021.

The group, which funds legal actions that it thinks will be successful, said the number of applications it received rose by 10% to 572 even with the disruption caused by Covid.

LCM’s investments are split between its own book and a A$150mln investment fund, with a second fund set to meet its US$300mn launch target early next year.

Over the year, LCM added it committed A$109mln gross with the amount invested rising by 69% to A$88mln, inclusive of third party funds.

() Ltd (), 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.

Ltd () said it expects its second specialist litigation fund with a size of US$300mln to close this quarter after strong interest from potential investors.

In a trading update for the year ended 30 June 2021, LCM revealed that its existing fund Global Alternative Returns (GAR) fund currently is 76% committed at US$115mln out of US$150mln.

() Limited’s () Patrick Moloney joins Proactive London to discuss their final results for 2021.

He says it was a year of robust performance during a period of unprecedented disruption demonstrating the strength of LCM’s investment proposition.

He talks through some of the key achievements for the period which include the Global Alternative Returns Fund committing as of September 2021 with diversity across jurisdictions, industry sector, claim type and capital commitment.

Litigation Capital Management (LCM) is an alternative asset manager specialising in disputes financing, with its main operations in Australia and the UK. The company provides funding for litigation in exchange for a share of any settlement and has built a strong track record of supporting winning cases and realising very strong returns on its investments.