Litigation Finance Insider

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Litigation Capital Management

All articles about Litigation Capital Management.

LCM investment yields 195% IRR

LCM has announced the delivery of an award in favour of the funded party in an international arbitration, under the LCIA (London Court of International Arbitration) rules. The arbitration, seated in London and brought under the rules of the LCIA was for the determination of a construction dispute relating to a development in the Middle East. The investment forms part of LCM's Direct Investment Portfolio and was 100% funded from the company's balance sheet. The investment produced approximately £9.8 million in revenue and produced a 255% ROIC and a 195% IRR. The life of the investment was 26 months.

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.

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 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. Overall, the company reports a 10-year cumulative portfolio IRR of 78%.

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.

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.

LCM backs collective action against Govia Thameslink Railway

Litigation Capital Management is backing a collective action launched in the UK's Competition Appeal Tribunal against Govia Thameslink Railway ("GTR") and its parent companies. The claim alleges that GTR abused its dominant position in the market for rail services on the London-Brighton mainline, in breach of the Competition Act 1998. The claim is being brought by law firm Maitland Walker LLP. Charles Hollander QC of Brick Court Chambers and David Went of Exchange Chambers have been engaged by Maitland Walker LLP to act as barristers for the claim. Exton Advisors advised the proposed class representatives.

LCM | High Court refuses to hear GPC’s challenge to enforceability of funder’s class action agreements

In a decision that has significant implications for the Australian litigation funding industry, Piper Alderman partners Greg Whyte and Lillian Rizio have successfully defended a challenge to the validity of LCM’s funding arrangements in the Gladstone Fisheries class action. The High Court refused to hear Gladstone Ports Corporation’s appeal, preserving the Court of Appeal’s finding that the funding agreement could not be challenged on public policy grounds.

LCM backs claim in liquidation proceedings of the Comet Group

Litigation Capital Management is backing a claim in the liquidation proceedings of the Comet Group. At the time of its insolvency, Comet was the UK's second largest electrical retailer with 239 stores and 6,900 employees. Liquidators from FRP Advisory are bringing a claim against Darty, a multinational electrical retailer based in France, alleging that it received a £83 million preferential payment prior to Comet entering into administration.

LCM backs Carillion claim

Litigation Capital Management ("LCM") is backing Carilllion in a claim against its former auditors. Carillion was the largest corporate collapse in the building and construction industry in UK history. Now, certain Carillion entities which are in liquidation, are bringing a claim against KPMG for the conduct of its audits of the Group's financial statements. The losses which form the subject matter of the claim are expected to exceed £250 million.

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