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

Funder News

LCM raises additional $200 million

Litigation Capital Management has raised US $200 million of its targeted $300 million for its LCM Global Alternative Returns Fund II and brings LCM’s total assets under management to US $450 million. The capital is coming primarily from existing investors, which includes a large endowment of a US University and the asset management division of a large global investment bank.

Funder News

LCM provides market update

Litigation Capital Management has provided a market update for the year ended 30 June 2021. Among other things, it reports that it received 572 applications for funding during the year of which 3% were converted into active investments, with an increase in high profile quality investments requiring increased resource allocation. Its total portfolio capital commitment is $181 million.

New Fundings

LCM backs shareholder class action in Australia

Litigation Capital Management is backing a prospective shareholder class action in Australia against Blue Sky Alternative Investments (“BLA”), a former ASX darling that faced difficulties after short-seller Glaucus reported on a number of practices that Glaucus argued inflated the value of BLA’s reported fee-earning assets under management. The company subsequently reduced its assets under management and saw its share price drop from around $12.50 to 18.5c before entering external administration, taking hundreds of millions in shareholder’s funds with it. The class action will be run by Piper Alderman.

Before You Go

Never miss a thing in the litigation finance market.