LCM reports its final results for 2021

Litigation Capital Management (LCM) has announced its financial results for the year ended 30 June 2021.

Despite the disruption caused by COVID, the company reported a gross profit of A$26.6 million, up A$4.9 million (23%) from the past year, primarily attributable to the resolution of six investments from its direct balance sheet portfolio and the partial resolution of 12 investments.

The company saw its number of applications increase from 522 in FY2020 to 572 in FY2021, though the amount of capital committed to new cases in the year was A$109 million, down from A$147 million in the previous year.

Highlights of the company’s year include entering into a number of investments involving large high profile corporate collapses (Carillion Group and CGL Realisations (Comet)), as well as establishing a tailored disputes finance facility with DLA Piper.

The company’s 10 year IRR now stands at 78%.

Patrick Moloney, CEO of Litigation Capital Management, commented: “I am pleased to deliver a strong set of results following a year marred with global disruption. Not only does this demonstrate the resilience of our business it also reflects the strength of our robust and disciplined investment selection process and the high calibre of our investment managers. LCM’s performance during the period was underpinned by our maturing balance sheet of direct investments which is beginning to deliver high yielding resolutions. We continue to build scale across our portfolio of investments and asset management business and anticipate an increased demand for our financing solutions as the effects of COVID on businesses starts to unfold. I look forward to my upcoming relocation to the UK later this year and leading the team to driving the business forward and accelerating growth in the period ahead.”

Full financial details and commentary can be found in the company’s annual report.

Keep Reading

New Fundings

LCM backs class action against Google and DeepMind Technologies

LCM is backing a new representative action in the UK being brought by Mishcon de Reya on behalf of up to 1.6 million individuals against Google and DeepMind Technologies for the unlawful use of patients’ confidential medical records. The claim arises out of an arrangement formed in 2015 between Google and DeepMind and the Royal Free London NHS Foundation Trust. The tech companies obtained and used a substantial number of confidential and private medical records without patients’ knowledge or consent.

Funder News

Litigation Capital Management 2022 half year results

Litigation Capital Management (LCM) has announced its half year results ended 31 December 2021. The company saw a gross profit of A$13.9m (H121: A$5.4m) and a further 89 applications received in the two month period to 28 February 2022 which demonstrates an acceleration in momentum and return to normal operating conditions. Overall, at the ten-and-a-half-year mark, LCM saw an increase in investment performance metrics achieving a cumulative Return on Invested Capital (ROIC) of 162%, [including losses] and a cumulative IRR of 79% (HY 2021: 78%). 

Before You Go

Never miss a thing in the litigation finance market.