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Legal-Bay Lawsuit Funding Raises Over $2MM with Joint Venture Partner to Fund Personal Injury Claims

By John Freund |

Legal-Bay Pre Settlement Funding reports an expansion to their capital needs now that funding applications are on the rise. The entire legal system had practically ground to a halt due to Covid-19, which caused massive delays in the courts. But now that life is starting to return to normal, backlogged dockets are being addressed. With renewed activity, Legal-Bay is seeing an increase in applications for settlement funding.

Chris Janish, CEO of Legal-Bay, commented, “We are pleased to report that with our acquisition of over $2MM in cash and conversion of another $1MM in old notes that we are poised to ring in a new post-Covid era of funding with a $3MM capital base. With courts slowed due to the pandemic, our industry has seen a downturn of funding volume, but Legal-Bay is now positioned to fulfill our origination volume expected over the next few months. Our ultimate goal is secure a minimum of $10MM in new capital to fill our business needs over the next twelve-month period and beyond. We have entered discussions with key institutional groups, and now with the pandemic behind us—as well as an exceptional seven-year track record of settling funding claims—we believe the future looks bright once again.”

Legal-Bay is a direct funding source and considered one of the best lawsuit funding companies in the industry. Their turnaround time is lightning fast, and their customer service is top notch. They’ve been in the pre-settlement lawsuit funding business for over a decade, so their experience is extensive.

If you would like more information about Legal-Bay, please visit their website HERE or call toll-free at 877.571.0405 for any other questions.

Legal-Bay funds all types of lawsuits including commercial litigation, personal injury cases, dog bites, car and truck accidents, medical malpractice, Purdue OxyContin cases, Boy Scouts of America or clergy abuse cases, workplace discrimination, wrongful termination or conviction, and many more.

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Litigation Lending Services Announces a New $35million Credit Facility 

By Harry Moran |

Litigation Lending Services (LLS), a pioneering force in the litigation funding industry for over 25 years, proudly announces the completion of a strategic $35 million credit facility with a leading Australian based global alternative asset manager. This credit facility further bolsters the Company's robust financial structure in tandem with its existing fund and balance sheet. 

Known for its commitment to social impact investment alongside handling insolvency and commercial and class action claims, LLS continues its mission to support those in their legal battles while making a positive difference in the community. 

As demonstrated by the recent announcement of the $180.4m settlement in the Stolen Wages Western Australia class action, LLS’s strategic approach to litigation financing combines rigorous case evaluation with a passion for driving positive societal change, making it an attractive opportunity for investors seeking both financial returns and meaningful contributions to the community. 

"We are thrilled to have successfully secured a new finance partnership, reinforcing our financial stability and positioning us for continued growth and impact," stated Chair Shaun Bonétt. “This not only strengthens our ability to support meritorious cases but also reinforces our belief that everyone deserves fair access to legal recourse, regardless of their financial situation.” 

With an impressive track record of fostering access to justice, Litigation Lending Services remains at the forefront of the industry. As LLS continues to celebrate its 25th anniversary, the funding further ensures that the Company is well positioned to continue its vital work providing crucial support to those who might otherwise lack access to the legal system. 

For more information about Litigation Lending Services, please visit https://litigationlending.com.au or contact:

Susan Wynne
Chief Executive Officer (Acting)
Litigation Lending Services
02 90519990
swynne@litlend.com.au

About Litigation Lending Services 

Litigation Lending Services is (LLS) a leading litigation funder with 25 years of experience in supporting insolvency, commercial claims and class actions with a key focus on funding social impact litigation. With a strong financial foundation and a commitment to justice, LLS empowers claimants to pursue meritorious cases, driving both financial and societal benefits.

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LCM – Trading Update for 2024 Financial Year 

By Harry Moran |

Litigation Capital Management Limited (AIM:LIT), an alternative asset manager specialising in dispute financing solutions internationally, is pleased to provide an update on its business for the 2024 financial year ended 30 June 2024.

We are pleased to report another successful year with eight investments concluding in the period generating realisations for LCM, inclusive of performance fees, totalling AUD$56.0m.  This is compared to LCM’s invested capital of AUD$23.8m, representing a multiple on invested capital (MOIC) of 2.4x. This performance aligns with our long-term track record of an average MOIC of 2.7x from investments concluded within the last 13 years, and underscores the successful execution of our strategy.  

Moreover, we have made a strong start to our 2025 financial year.  Shortly after the 2024 financial year end, a single case investment concluded generating realizations for LCM of at least AUD$12.5m, including performance fees, compared to LCM’s invested capital of AUD$1.5m, representing a MOIC of 8.3x. 

PeriodRealisations (AUD$m)Invested Capital (AUD$m)MOIC multiple
H128.48.83.2x
H227.615.01.8x
FY2456.023.82.4x
Post Period end12.51.58.3x

The average duration of cases concluded in FY24 was 45 months - slightly longer than our general expectation of 36-42 months, which remains unchanged.  This largely reflects the COVID related delays that we have previously communicated which impacted several of the investments that concluded in the period.  Importantly, elongated time has not adversely impacted on investment performance. 

We continue to invest in what we believe are the highest quality legal claims, collaborating with leading law firms and barristers in our respective markets.  We have seen high demand for our capital in the second half of the year and expect to report New Commitments for FY24 in excess of AUD$250m (FY23: AUD$176m). It remains our key strategic priority to continue to grow New Commitments, and thus ensure LCM achieves additional financial scale.

Our current portfolio of investments, both direct investments that are entirely funded via our own balance sheet and those in which we are co-invested alongside our managed external funds, continue to perform in line with our expectations.  

Patrick Moloney, CEO of LCM, commented: “The performance of our concluded investments in our 2024 financial year highlights the strength and effectiveness of our investment strategy. Through our rigorous investment process, we have assembled a high-quality portfolio of uncorrelated legal finance assets that are positioned to deliver attractive future aggregate investment performance. Given our access to capital, further growing New Commitments remains our key strategic priority and we are well on track. We see significant upside potential here. 

“We look forward to updating our investors on our strategic progress with our full-year results presentation on

19 September and are excited about our future opportunities.” 

Below is a brief summary of selected investments that concluded in the second half of our 2024 financial year. 

Binding Settlement reached  - Direct balance sheet Investment

A successful outcome in a dispute investment which forms part of LCMs portfolio of 100% direct investments has been achieved. The proceedings were heard in the Supreme Court of Western Australia and included two levels of appeal at which LCM’s funded party was successful at each level.  A binding settlement deed has been executed by the parties resulting in the realisation of LCM’s investment. The investment is one of four legacy disputes held at cost within our financial statements.  Details of the returns are highlighted below:

AUD$mInvestment performance
Invested capital 2.8
Investment return9.2
Total revenue12.0
MOIC4.3x

Binding Settlement reached - Direct balance sheet Investment

A further successful outcome was achieved with respect to a portfolio of insolvency claims related to the failure of an Australian listed construction company. A binding settlement deed was executed by the parties resulting in the realisation of LCM’s investment. The investment also forms part of LCMs portfolio of 100% direct investments. Details of the returns are highlighted below:

AUD$mInvestment performance
Invested capital 2.8
Investment return7.4
Total revenue10.3
MOIC3.7x

Furthermore, below is a summary of the investment that concluded shortly after our financial year end. 

Bilateral Investment Treaty - Fund I Investment

LCM funded a claim advanced in respect of a breach of a bilateral investment treaty and brought under the International Centre For Settlement of Investment Disputes (ICSID) Convention. The Tribunal issued an award in July 2023 in favour of LCM’s funded party for USD$76.7m plus interest and costs.  The Respondent sought to challenge the award, but the parties have now reached a settlement in advance of the annulment hearing. The terms of the settlement are confidential. 

The claim forms part of LCM’s managed Global Alternative Returns Fund (“Fund I”) and was funded directly from LCM’s balance sheet (25%) and Fund I investors (75%). Details of the returns are highlighted below:

AUD$mInvestment performanceLCM performance metricsFund I performance metrics
Invested capital 5.91.54.4
Investment return23.35.817.5
Total revenue29.27.321.9
MOIC on investment 5.05.05.0
Performance fee*-5.2(5.2)
Gross profit23.311.012.3
MOIC inclusive of performance fees5.0x8.3x3.8x

*The investment returns are subject to change based on the prevailing FX rate and timing of distribution 

About LCM

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.

www.lcmfinance.com

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Fenchurch Legal Appoints Nathan Patterson as Senior Financial Controller

By Harry Moran |

Fenchurch Legal a specialist provider of litigation funding for small and medium-sized UK law firms, today announced the appointment of Nathan Patterson as Senior Financial Controller.

Nathan brings a wealth of experience to the role, with a proven track record of effective financial management and strategic planning. He previously held key financial positions at a boutique advisory firm in Dubai and a Plc house-building company in the UK.

A qualified accountant and tax advisor, Nathan is both FCCA and CTA qualified. He will play a pivotal role in driving Fenchurch Legal’s continued growth and financial success.  In his new role, Nathan will head the Finance department, ensuring accurate financial reporting, strategic budgeting, and the overall financial health of the company. He will also oversee risk management, conducting thorough financial due diligence on all borrowers. His role is pivotal in maintaining Fenchurch Legal on a path of robust financial health and sustainable growth.

Nathan Patterson commented on his appointment: "I am excited to join Fenchurch Legal at such a key time in the company’s growth period and contribute to its continued success. My goal is to enhance the financial operations and support the company's growth ambitions through sound financial management and strategic planning."

Louisa Klouda, CEO of Fenchurch Legal, said: "We are delighted to welcome Nathan to our team. His extensive experience will be of great value to us as we experience a period of rapid growth. He will help us continue to scale our operations and expand our client base. Nathan’s appointment underscores Fenchurch Legal’s commitment to building a strong and experienced team to support our growth plans."

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