Litigation Capital Management (“LCM”) is one of the world’s leading providers of disputes finance.
They are one of the pioneers of the litigation funding industry, commencing operations in Australia in 1998 by providing third-party funding to the insolvency sector.
Since then, LCM has expanded geographically and covers the globe through physical offices in Australia, Asia and the United Kingdom. As international acceptance of litigation funding has grown, they have considered applications for funding from over forty jurisdictions. They have successfully completed more than 240 cases since inception.
LCM’s team are all litigators with a combined experience of over 240 years, with expertise running disputes in the markets covered by their solutions.
What LCM invests in
They provide bespoke funding solutions for the following classes of disputes:
- Commercial claims – such as breach of contract, negligence or misrepresentation.
- Commercial arbitration across various arbitral forums.
- Treaty arbitration in respect of claims against state-based entities.
- Insolvency claims that are brought by liquidators. This includes the acquisition of claims.
- Portfolio funding, allowing the funding of multiple cases with reduced risk.
- Enforcement of judgments or arbitral awards across multiple jurisdictions.
- Funding investigative work required to trace assets and unlock recoveries.
- Funding claims for receivables, debt books and non-performing loans.
Their investment model combines funding directly from their own balance sheet (LCM is listed on AIM) with managing third party funds.
Their investments cover the following types of claims:
- Single case funding. This is historically the majority of LCM’s investments.
- Portfolio funding. This is the funding of a bundle of single disputes. LCM is an emerging leader in the provision of portfolio funding to corporates, who are increasingly moving to using disputes finance by choice rather than by necessity.
- Acquisition of claims. LCM makes investments in smaller disputes (typically insolvency-based) through the acquisition or assignment of the underlying cause of action.
LCM’s investment process is predicated on the application of five selection criteria, which allow them to manage funding and recovery risk.
- Clear legal principles. The investment opportunity must be based on clear legal principles and not any novel points of law.
- Written evidence. The claim should be supported by factual and legal analysis producing strong merits.
- Recoverability. There must be a clear line to recovery for the claim in that it must be demonstrated that the defendant has the capacity to meet a judgment of the size which will be sought.
- Proportionality. There must be proportionality between the size of the claim and the funding commitment to ensure returns for claimants.
- Experienced legal team. There must be a highly competent and experienced legal team in place with the relevant expertise to pursue the claim.
Having been in business far longer than the vast majority of their competitors, LCM is a leader in creative litigation and dispute funding solutions. They maintain deep relationships across the globe with key partners such as law firms, insolvency practitioners, advisors and consultants.
Their difference is experienced through the following characteristics of their business:
- Well resourced - they combine balance sheet resources with managing third-party capital to offer significant permanent capital resources. They constantly explore partnerships with sources of capital and law firms to deliver relevant products to their clients with competitive terms.
- Disciplined - LCM has been providing disputes finance products into the market for over twenty years. Over those years they have developed significant skills in assessing litigation risk. They employ and uphold a strict approach to assessing and underwriting opportunities, ensuring that the cases they accept are set up for success.
- Transparent - LCM is listed on the London Stock Exchange (ticker AIM:LIT). As such, they are committed to transparency and provide fully accessible financial information to all stakeholders.
- Flexible - they listen to their market and their customers. They do not apply a one size fits all approach to their solutions. LCM provides bespoke financing solutions, where each case and partnership has its own unique structure, pricing and objectives.
- Creative - they are thought leaders, continuously developing innovative solutions, with flexibility and pragmatism, for the needs of their clients.