Litigation Capital Management Ltd
LSE:LIT
Litigation Capital Management Ltd
Litigation Capital Management Ltd. engages in providing litigation finance for companies and individuals. The company is headquartered in Sydney, New South Wales. The company went IPO on 2018-12-19. The firm is an alternative asset manager specializing in disputes financing solutions internationally. The company operates through two business models: direct investments and funds management. LCM's investment strategies include single-case, portfolios, and acquisition of insolvency claims. Its single-case investment includes investment in a single dispute globally. Its portfolio includes funding a bundle of single disputes in which LCM's capital investment is collaterally secured against the proceeds of the entire portfolio of disputes. Its acquisition of insolvency claims includes investment in smaller disputes through the acquisition or assignment of the underlying cause of action. The firm's product includes Fully Litigation, Litigation for finance companies, Funding for financial international arbitrations, Law firm/Portfolio funding, Disbursement finance, Security for costs, and others.
Litigation Capital Management Ltd. engages in providing litigation finance for companies and individuals. The company is headquartered in Sydney, New South Wales. The company went IPO on 2018-12-19. The firm is an alternative asset manager specializing in disputes financing solutions internationally. The company operates through two business models: direct investments and funds management. LCM's investment strategies include single-case, portfolios, and acquisition of insolvency claims. Its single-case investment includes investment in a single dispute globally. Its portfolio includes funding a bundle of single disputes in which LCM's capital investment is collaterally secured against the proceeds of the entire portfolio of disputes. Its acquisition of insolvency claims includes investment in smaller disputes through the acquisition or assignment of the underlying cause of action. The firm's product includes Fully Litigation, Litigation for finance companies, Funding for financial international arbitrations, Law firm/Portfolio funding, Disbursement finance, Security for costs, and others.
Revenue: LCM generated $51 million in revenue from 7 realizations, with a strong 3.6x multiple of invested capital.
Performance Track Record: The company maintains an 83% win ratio over 13.5 years, with a 2.4x multiple and 76% IRR on invested capital.
Treaty Claims Success: LCM achieved standout returns on treaty arbitration claims, including a $400 million award for clients from a $15 million investment, highlighting strength in a challenging segment.
Funds Management Transition: Fund I is ranked in the top 5% of US private equity funds, and Fund III is now in marketing, targeting $300 million, with strong investor interest despite tough markets.
Debt Refinancing: LCM upsized and refinanced its debt facility to $75 million and lowered the interest rate to below 13%.
Short-term Losses: The period saw a few losses at first instance, but management remains confident in appeal prospects and emphasizes long-term success.
Cost and Cash Flow: Operating expenses tracked previous guidance, with $10 million in H1 OpEx and expectations for a similar amount in H2. Net debt increased to $40 million.
Outlook: Management expects demand for LCM's capital to rise amid global uncertainty and sees strong positioning as competitors struggle to raise funds.
