2 December 2024
Litigation Capital Management Limited
("LCM" or the "Company")
Significantly Expanded US$75m Credit Facility at Below 10% Interest
Litigation Capital Management Limited (AIM:LIT), a leading international alternative asset manager of disputes financing solutions, is pleased to announce it has secured a new, expanded credit facility (the "Credit Facility") with Northleaf Capital Partners ("Northleaf"), a global private markets investment firm experienced in litigation finance. The new Credit Facility provides access to US$75 million in initial credit with the potential to upsize by a further US$75 million (up to US$150m in total).
The Credit Facility offers significant flexibility to drive LCM's growth strategy, supporting both direct investments and LCM's co-investments into cases funded alongside its managed funds business. It is secured against LCM's assets, is available for general corporate purposes, and has an overall term of four years.
Key features of the Credit Facility include:
Multi-currency availability: Available in USD, GBP, and AUD, the facility supports LCM's global financing needs.
Cost structure: Interest is set at the relevant central bank rate plus 5.25% (compared to central bank rate plus 8% for the prior facility) and is charged on the amount of the facility that has been drawn. Based on current central bank rates, this implies an interest rate below 10%. Unlike the prior facility, there is no profit participation in LCM's direct investments for the lender.
Drawdown period and term: The Credit Facility has a four-year term, with the ability to draw down funds during the initial two years. It includes the usual financial covenants and reporting requirements typical of facilities of this nature.
Patrick Moloney, CEO of LCM, commented: "Securing this expanded Credit Facility is a significant step in LCM's growth journey. With this increased capital flexibility, we are well-positioned to scale our investment portfolio, capture new opportunities, and drive sustainable long-term growth. We are excited to leverage this facility to advance our strategic objectives and support the ongoing growth of our dispute financing solutions."
Enquiries
| Litigation Capital Management | c/o Tavistock PR |
| Patrick Moloney, Chief Executive Officer David Collins, Chief Financial Officer | |
| | |
| Cavendish (Nomad and Joint Broker) | Tel: 020 7523 8000 |
| Jonny Franklin-Adams and Rory Sale (Corporate Finance) Tim Redfern and Jamie Anderson (Corporate Broking) | |
| Canaccord Genuity (Joint Broker) | Tel: 020 7597 5970 |
| Bobbie Hilliam | |
| | |
| Tavistock PR | Tel: 020 7920 3150 |
| Katie Hopkins Simon Hudson | lcm@tavistock.co.uk |
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 revenue 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.
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