Business
Resolution of investment
Resolution of investment.
About this update from Litigation Capital Management Ltd
[{"type":"text","content":"\n \n \n 3 April 2023\n \n \n \n \n \n Litigation Capital Management Limited\n \n \n (\"LCM\" or the \"Company\")\n \n \n \n \n \n Resolution of investment\n \n \n \n \n \n Litigation Capital Management Limited (AIM:LIT),\n an alternative asset manager specialising in dispute financing solutions internationally,\n announces the realisation and cash receipt of an\n investment which forms part of LCM's Fund I portfolio.\n \n \n \n \n \n On 20 December 2022, LCM announced the delivery by the High Court of a Judgment in favour of LCM's funded party, the Liquidator of CGL Realisations Limited, formerly known as Comet Group Limited. Pursuant to the Judgment, an amount of approximately £110m was paid into Court by the Respondent. The Respondent sought and obtained permission to pursue an appeal against that Judgment, which is progressing through the Court system.\n \n \n \n \n \n In the interim, the liquidator procured a judgment protection insurance policy. Subsequently, an application was made to the Court for payment out of court of sufficient monies to pay LCM's entitlements pursuant to the Litigation Funding Agreement as well as the cost of defending the appeal. This enabled the liquidator to finalise its obligations to LCM, bringing about a conclusion to this investment. The use of judgment protection insurance provides a mechanism for the liquidator to reduce the overall cost of litigation finance by utilising funds from the Judgment at first instance. Additionally, it allows LCM's investment to be realised.\n \n \n \n \n \n The investment returns, which are subject to change based on exchange rates at the time of distribution, are as follows:\n \n \n \n \n \n \n \n \n \n AUD$m\n \n \n \n \n Investment performance\n \n \n \n \n LCM (c\n o-funded\n ) performance metrics\n \n \n \n \n Fund I performance metrics\n \n \n \n \n \n \n Invested capital\n \n \n \n \n 8.4\n \n \n \n \n 2.1\n \n \n \n \n 6.3\n \n \n \n \n \n \n Investment return\n \n \n \n \n 22.0\n \n \n \n \n 5.5\n \n \n \n \n 16.5\n \n \n \n \n \n \n Total revenue\n \n \n \n \n 30.4\n \n \n \n \n 7.6\n \n \n \n \n 22.8\n \n \n \n \n \n \n ROIC on investment\n \n \n \n \n 261%\n \n \n \n \n 261%\n \n \n \n \n 261%\n \n \n \n \n \n \n Performance fee\n \n \n \n \n -\n \n \n \n \n 4.9\n \n \n \n...