Business
Resolution of Investment
Resolution of Investment.
About this update from Litigation Capital Management Ltd
[{"type":"text","content":"\n\n \n19 June 2023\n \nLitigation Capital Management Limited\n(\"LCM\" or the \"Company\")\n \nResolution of Investment\n \nLitigation Capital Management Limited (AIM:LIT), an alternative asset manager specialising in dispute financing solutions internationally, announces a successful resolution on an investment forming part of LCM's Fund I portfolio of investments.\n \nSuccessful Award in Arbitration Investment\n \nLCM's investment and funding related to a dispute in London Court of International Arbitration proceedings. LCM provided funding and support to the claimant in those proceedings, which recently received an award in its favour. The subject matter, findings and funding terms remain subject to confidentiality. \n \nInitially, the investment was expected to complete within a short time frame from the commencement of funding, however, the matter was delayed due to a number of external factors. This protraction enhanced the returns to LCM and Fund I investors, details of which are highlighted in the table below:\n \n \n\n\n\n*AUD$m\n\n\nInvestment performance\n\n\nLCM performance metrics\n\n\nFund I performance metrics\n\n\n\n\nInvested capital\n\n\n9.2\n\n\n2.3\n\n\n6.9\n\n\n\n\nInvestment return\n\n\n36.7\n\n\n9.2\n\n\n27.5\n\n\n\n\nSuccess fee\n\n\n21.7\n\n\n5.4\n\n\n16.3\n\n\n\n\nTotal revenue\n\n\n67.6\n\n\n16.9\n\n\n50.7\n\n\n\n\nROIC on investment\n\n\n635%\n\n\n635%\n\n\n635%\n\n\n\n\nPerformance fee*\n\n\n-\n\n\n15.1\n\n\n(15.1)\n\n\n\n\nGross profit\n\n\n58.4\n\n\n29.7\n\n\n28.7\n\n\n\n\nROIC after performance fees\n\n\n635%\n\n\n1291%\n\n\n416%\n\n\n\n*The investment returns are subject to change based on the prevailing FX rate and timing of distribution\n \n \nPatrick Moloney, CEO of LCM, commented: \"The Resolution of this investment demonstrates two important features of LCM's business and its investment strategy. First, it validates the skillset of our investment managers in undertaking a rigorous due diligence exercise and accurately predicting the final outcome of a large and complex commercial dispute resolved through arbitration. Secondly, it is an example of an investment which we had originally expected to resolve in a prior financial period. The return metrics generated by this investment clearly demonstrate how returns are...