Tuesday 8 November 2016. Litigation financier Litigation Capital Management Limited (LCM) is seeking to raise between $7.5 million and $15.0 million at an offer price of $0.70 on the Australian Securities Exchange (ASX) to expand its current book of litigation projects.
According to LCM managing director Patrick Moloney “The Board is confident that there are significant opportunities for LCM to grow its business and complete its transformation into an appropriately capitalised financier of ongoing and profitable litigation projects.”
“Since its inception in 1998, LCM has managed 46 litigation projects, comprising 190 individual cases. In preparation for the IPO we have invested heavily in our people and systems which has fast tracked our growth. In the last five years alone LCM has completed 24 litigation projects which have yielded an IRR of almost 80%.
“Corporate lawyers in the UK and the US have long recognised that litigation financing has matured into a corporate finance product, treating impending litigation like any other asset a company might possess and using it to unlock the value of pending litigation whilst mitigating risk and preserving cash-flow,” Mr Moloney says.
“In fact, when British Telecom recently concluded the landmark US$45 million financing of a portfolio of cases, it signalled to the corporate market that not only can litigation be converted into a revenue stream, it further confirmed litigation finance as a legitimate business tool” he added.
In 2013, the litigation market in Australia was estimated to be larger than $20 billion per annum with the litigation financing market estimated at about $3 billion. LCM expects corporates within Australia to recognise the significant benefits of the British Telecom transaction and as such LCM expects the litigation financing market in Australia to expand materially.
LCM’s listing team comprises 145 Fleet as financial adviser, Morgans Financial as settlement broker, lawyers Piper Alderman and BDO as investigating accountant. The prospectus can be accessed at www.lcmfinance.com
For further information contact Patrick Moloney on 0416 276 979 or pmoloney@lcmfinance.com.
