Business
First close of a new US$150 million fund
First close of a new US$150 million fund.
About this update from Litigation Capital Management Ltd
[{"type":"text","content":"\n \n \n RNS Number : 5146F\n Litigation Capital Management Ltd\n 10 March 2020\n \n \n \n \n 10 March 2020\n \n \n \n \n \n Litigation Capital Management Limited\n \n \n (LCM or the Company)\n \n \n \n \n \n \n \n \n LCM completes first close of a new US$150 million fund\n \n \n \n \n \n Litigation Capital Management Limited (AIM:LIT), a leading international provider of litigation financing solutions, is pleased to announce the first close of a new third party fund of up to US$150 million, LCM Global Alternative Returns Fund (\n the Fund)\n . In accordance with the Company's strategy and as previously communicated to the market, the close of this Fund marks LCM's return to managing third-party funds, following the building of a permanent source of balance sheet capital through the equity markets.\n \n \n \n \n \n Managed by LCM, the Fund will supplement the deployment of capital from LCM's own balance sheet, significantly increasing its ability to invest in new opportunities in line with its stated strategy. The Fund will target global dispute finance investments including both single disputes and corporate portfolio transactions, further detail on the investment pipeline is set out below. \n \n \n \n \n \n Fund participants\n \n \n \n \n \n · \n The Fund's cornerstone investors include firstly the large endowment of a US University and secondly, the asset management division of a large global investment bank. Both have extensive experience of investing in the litigation finance asset class and entrenched rights to participate in future funds raised by LCM, demonstrating their commitment to LCM and also to the asset class more widely.\n \n \n · \n Three further participants in the Fund include: a further US-based university endowment, a Swiss based fund manager specialising in investing in litigation finance and a substantial European family office with significant investment experience in litigation finance.\n \n \n Structure\n \n \n \n \n \n · \n The Fund will co-invest with investments from LCM's balance sheet on a 75:25 basis\n \n \n · \n LCM's balance sheet contribution (25%) will be invested and advanced on a monthly basis over the term of each investment, no upfront contribution will be required\n \n \n · \n Performance fees will be payable to LCM as fund...