Litigation Capital Management Ltd (AIM:LIT) received £9.8mln (A$18.4m) in revenue after the London Court of International Arbitration found in favour of its funded party.
The arbitration determined a construction dispute relating to a development in the Middle East.
Litigation Capital (LCM), an asset manager specialising in dispute financing solutions, said the investment was one of the first made from its London office after it opened in 2018.
The award includes the return of LCM's investment of £2.8m. This investment forms part of LCM's Direct Investment Portfolio and was 100% funded from balance sheet.
Chief executive Patrick Moloney said the award “demonstrates the successful application of its underwriting process to an expanding range of investments both in terms of geography and claim type. This award is an excellent result for both LCM and our funded party.”
The revenue received includes the return of LCM's investment, which generated a return on invested capital of 255%, with an internal rate of return of 195%.