REG - Litigation Cap. Mgmt - Positive update on Fund I investment

Litigation Capital ManagementAnnouncement

08/10/2024 12:04

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RNS Number : 3871H  Litigation Capital Management Ltd  08 October 2024

8 October 2024

Litigation Capital Management Limited

("LIT", the "Company" or the "Group")

Positive update on Fund I investment

 

Litigation Capital Management Limited (AIM:LIT), an alternative asset manager
specialising in dispute financing solutions internationally, announces a
positive development on an investment within its Fund I portfolio.

 

LCM has funded a claim advanced in respect of an international arbitration
claim brought against the Republic of Poland under the United Nations
Commission on International Trade Law (UNCITRAL) Rules. The Tribunal has
unanimously held in favour of the funded party that the Republic of Poland
breached its obligations under the Australia-Poland Bilateral Investment
Treaty and the Energy Charter Treaty.

 

The quantum of the award entered in favour of LCM's funded party totals A$490
million plus interest.

 

LCM's funded party has therefore been successful in the claim. If the award is
not subject to challenge and is not satisfied the dispute will move to an
enforcement stage. We will assess any further funding requirements once the
enforcement strategy has been finalised.

 

The total investment into the case to date is A$16.6 million (US$11.3
million). This investment comprises A$4.2 million (US$2.8 million) from LCM's
own balance sheet and A$12.4 million (US$8.5 million) of third party capital
from Fund I. In line with our usual practice LCM's returns are calculated as a
rising multiple of invested capital over time.

 

This investment is no longer attended with liability and quantum risk as that
has been decided. Final performance will be announced to the market after
conclusion of the investment. However, if the award is satisfied within a
reasonable period without the need for enforcement, then based upon the
contractual terms with the funded party as at the date of this announcement,
LCM would be entitled to a multiple of 6 times its own invested capital plus
significant performance fees on third party capital invested.

 

Patrick Moloney, CEO of LCM, commented: "This announcement represents a very
significant milestone in this investment. Subject to any challenge to the very
favourable and unanimous award we now move to an enforcement stage. This
investment is part of Fund I and therefore stands to benefit from significant
performance fees giving it the potential to be the most successful investment
in LCM's history."

 

Enquiries

 

 Litigation Capital Management             c/o Tavistock
 Patrick Moloney, Chief Executive Officer

 David Collins, Chief Financial Officer

 Canaccord (Nomad and Joint Broker)        Tel: 020 7523 8000
 Bobbie Hilliam

 Investec Bank plc (Joint Broker)          Tel: 020 7597 5970
 David Anderson

 Tavistock (PR and IR)                     Tel: 020 7920 3150
 Katie Hopkins                             lcm@tavistock.co.uk

 Simon Hudson

 

NOTES TO EDITORS

Litigation Capital Management (LCM) is an alternative asset manager
specialising in disputes financing solutions internationally, which operates
two business models. The first is direct investments made from LCM's permanent
balance sheet capital and the second is third party fund management. Under
those two business models, LCM currently pursues three investment strategies:
Single-case funding, Portfolio funding and Acquisitions of claims. LCM
generates its income from both its direct investments and also performance
fees through asset management.

 

LCM has an unparalleled track record driven by disciplined project selection
and robust risk management. Currently headquartered in Sydney, with offices in
London, Singapore, Brisbane and Melbourne, LCM listed on AIM in December 2018,
trading under the ticker LIT.

 

www.lcmfinance.com (http://www.lcmfinance.com/)

 

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