Litigation Capital Management Ltd (AIM:LIT) (LCM), a firm specialising in global dispute financing solutions, has announced a significant win from its Fund I portfolio, marking a lucrative return on an initial investment.
LCM invested in a case heard at the London Court of International Arbitration and provided financial backing to the successful claimant.
Although the specifics remain confidential, the delayed timeframe for resolution led to increased returns for LCM and its Fund I investors.
Notably, LCM's initial investment of US$9.2mln yielded a return of US$67.6mln.
"The resolution of this investment demonstrates two important features of LCM's business and its investment strategy," said Patrick Moloney, Litigation Capital chief executive.
"First, it validates the skillset of our investment managers in undertaking a rigorous due diligence exercise and accurately predicting the final outcome of a large and complex commercial dispute resolved through arbitration.
"Secondly, it is an example of an investment which we had originally expected to resolve in a prior financial period. The return metrics generated by this investment clearly demonstrate how returns are enhanced notwithstanding a delayed resolution.
"Not only were we extremely happy with the outstanding investment returns, but also LCM's funded party was grateful for the financial support beyond the originally contemplated investment period."