REG - RBG Holdings PLC - £20 million litigation investment arrangement

RBG HoldingsAnnouncement

15/02/2022 07:00

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RNS Number : 6534B  RBG Holdings PLC  15 February 2022

15 February 2022

 

RBG Holdings plc

("RBG" or the "Group")

 

£20 million litigation investment arrangement & Investor Presentation

 

RBG Holdings plc, the professional services group, has today announced that
its subsidiary, LionFish Litigation Finance Limited ("LionFish"), has agreed a
£20 million litigation investment arrangement (the "Arrangement") with a
large alternative investment firm (the "Firm"). LionFish finances litigation
matters being run by solicitors outside the Group in return for a significant
return on the outcome of those cases.

 

Under the terms of the Arrangement, the Firm will participate in all of
LionFish's litigation investments, investing up to 75% in each of LionFish's
investments across the portfolio over a two-year period. LionFish will be
entitled to receive a significant share of the returns of the Arrangement
after a high single-digit return hurdle has been met, therefore providing
significant additional potential returns to LionFish beyond its own
investment.

 

LionFish will have sole discretion in terms of which investments to pursue
within a broad set of agreed parameters (similar to LionFish's current
investment parameters). The focus of the Arrangement will be on maintaining
LionFish's highly selective, quality-focused investment standards, without any
undue deployment pressure.  LionFish will also be responsible for the
administration of each underlying litigation investment.

 

The Arrangement provides LionFish with significant additional capital
flexibility in the investments it makes, allowing it to manage a more
diversified and granular portfolio of risks off balance sheet, as well as to
move away from the investor sales model currently being used to reduce risk.
By partnering with a large alternative investment manager, LionFish has the
opportunity to extend or repeat the Arrangement on a rolling basis,
potentially providing a long-term flexible capital source that can grow in
line with the business

 

The Arrangement has been approved by RBG's banking partners and is not a debt
or credit facility. The Group's balance sheet will remain unchanged as a
result of the Arrangement.

 

Nicola Foulston, CEO of RBG Holdings plc, commented: "This arrangement is a
significant development in LionFish's long-term growth, and a validation of
our decision to enter the third-party litigation funding market.  The
arrangement will support our move away from our current model of selling
participation rights in cases to investors. It will provide LionFish with the
right kind of flexible capital to allow the management team to focus on
quality of profits, not the quantity of monies deployed into litigation
risks."

 

Tets Ishikawa, Managing Director of LionFish, commented: "We are delighted to
have negotiated this highly innovative and unique structure with a major
alternative investment firm. It increases our capacity to invest in litigation
funding without falling back on a low-margin, deployment-focused fund
management model. The arrangement allows us to diversify our own investment
book and enhance the return profiles from our core investment business. This
sets up LionFish for an exciting and profitable period of growth."

 

Investor Presentation

Group CEO, Nicola Foulston and Tets Ishikawa, Managing Director of LionFish
will host a live investor presentation about the litigation investment
arrangement via the Investor Meet Company (IMC) platform on 21 February at
10.30am.

 

The online presentation is open to all existing and potential shareholders.
Investors can sign up to Investor Meet Company for free and add RBG Holdings
plc via

 

https://www.investormeetcompany.com/rbg-holdings-plc/register-investor
(https://www.investormeetcompany.com/rbg-holdings-plc/register-investor)

 

Investors who have already registered and added to meet the company, will be
automatically invited.

 

Questions can be submitted pre-event via the Investor Meet Company dashboard
up until 9am the day before the meeting or at any time during the live
presentation. Although they may not be able to answer every question received,
the presenters will address the most prominent within the confines of
information already disclosed to the market.

 

Enquiries:

 RBG Holdings plc                                Via SEC Newgate

 Nicola Foulston, CEO

 Singer Capital Markets (Nomad and Broker)      Tel: +44 (0)20 7496 3000

 Shaun Dobson / Alex Bond (Corporate Finance)

 Tom Salvesen (Corporate Broking)
 SEC Newgate (for media enquiries)              Tel: +44 (0)7540 106366 rbg@secnewgate.co.uk

 Robin Tozer/Isabelle Smurfit

 

About RBG Holdings plc

RBG Holdings plc is a professional services group, which comprises the
following divisions:

 

RBG Legal Services Limited ("RBGLS")

RBGLS is the Group's legal services division which combines the businesses
previously operated by Rosenblatt Limited and Memery Crystal LLP.

 

 

Rosenblatt

Rosenblatt is one of the UK's pioneering legal practices and a leader in
dispute resolution. Rosenblatt provides a range of legal services to its
diversified client base, which includes companies, banks, entrepreneurs and
individuals. Complementing this is Rosenblatt's increasingly international
footprint, advising on complex cross-jurisdictional disputes.

 

 

Memery Crystal

Memery Crystal offers legal services in a range of areas such as corporate
(including a market-leading corporate finance offering), real estate,
commercial, IP & technology (CIPT), banking & finance, tax &
wealth structuring and employment. Memery Crystal is one of the leading legal
practices in the UK to advise the emerging cannabis sector on a wide range of
business issues. Memery Crystal offers a partner-led service to a broad range
of clients, from multinational companies, financial institutions and
owner-managed businesses to individual entrepreneurs.

 

LionFish Litigation Finance Limited ("LionFish")

The Group also provides litigation finance in selected cases through a
separate arm, LionFish Litigation Finance Limited. LionFish finances
litigation matters being run by other solicitors in return for a significant
return on the outcome of those cases. As such, the Group has two types of
litigation assets - Rosenblatt's own client matters, and litigation matters
run by third-party solicitors. LionFish is positioned to be a unique,
alternative provider to the traditional litigation funders.

 

Convex Capital Limited ("Convex Capital")

Convex Capital is a specialist sell-side corporate finance boutique based in
Manchester. Convex Capital is entirely focused on helping companies,
particularly owner-managed and entrepreneurial businesses, realise their value
through sales to large corporates. Convex Capital identifies and proactively
targets firms that it believes represent attractive acquisition opportunities.

 

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