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
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Litigation Capital Management
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c/o Tavistock
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Patrick Moloney, Chief Executive
Officer
David Collins, Chief Financial
Officer
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Canaccord (Nomad and Joint Broker)
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Tel: 020 7523 8000
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Bobbie Hilliam
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Investec Bank plc (Joint Broker)
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Tel: 020 7597 5970
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David Anderson
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Tavistock (PR and IR)
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Tel: 020 7920 3150
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Katie Hopkins
Simon Hudson
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lcm@tavistock.co.uk
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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