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

Litigation Capital Management Ltd, an alternate asset manager specialising in disputes financing solutions internationally, 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.

(), the alternative fund manager, said its second third-party fund had raised US$200mln at the first closing date.

LCM Global Alternative Returns Fund II aims to bring in at least US$300mln and expects to reach US$400mln by final close.

Like the first fund, it will be involved in financing legal actions with LCM itself co-investing and contributing 25% to the cost of the cases from its own balance sheet.

Chief executive Patrick Moloney said: “Achieving such a significant first close of Fund II is a major milestone and achievement for LCM.

Litigation Capital Management (AIM:LIT) 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.

Litigation Capital Management (AIM:LIT) Ltd (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.

Litigation Capital Management (AIM:LIT) Limited’s (AIM:LIT) 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.