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Litigation Capital Management Limited Positive Update on Fund I Investment

By Harry Moran |

Litigation Capital Management Limited (AIM:LIT), an alternative asset manager specialising in dispute financing solutions internationally, announces a positive development on an investment within its Fund I portfolio.

LCM has funded a claim advanced in respect of an international arbitration claim brought against the Republic of Poland under the United Nations Commission on International Trade Law (UNCITRAL) Rules. The Tribunal has unanimously held in favour of the funded party that the Republic of Poland breached its obligations under the Australia-Poland Bilateral Investment Treaty and the Energy Charter Treaty.  

The quantum of the award entered in favour of LCM’s funded party totals A$490 million plus interest.

LCM’s funded party has therefore been successful in the claim. If the award is not subject to challenge and is not satisfied the dispute will move to an enforcement stage. We will assess any further funding requirements once the enforcement strategy has been finalised.

The total investment into the case to date is A$16.6 million (US$11.3 million). This investment comprises A$4.2 million (US$2.8 million) from LCM’s own balance sheet and A$12.4 million (US$8.5 million) of third party capital from Fund I. In line with our usual practice LCM’s returns are calculated as a rising multiple of invested capital over time.  

This investment is no longer attended with liability and quantum risk as that has been decided. Final performance will be announced to the market after conclusion of the investment. However, if the award is satisfied within a reasonable period without the need for enforcement, then based upon the contractual terms with the funded party as at the date of this announcement, LCM would be entitled to a multiple of 6 times its own invested capital plus significant performance fees on third party capital invested. 

Patrick Moloney, CEO of LCM, commented: “This announcement represents a very significant milestone in this investment. Subject to any challenge to the very favourable and unanimous award we now move to an enforcement stage. This investment is part of Fund I and therefore stands to benefit from significant performance fees giving it the potential to be the most successful investment in LCM’s history.”

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 income 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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Harry Moran

Harry Moran

Commercial

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LLoyd’s Extends Litica’s Coverholder Approval to Include Europe

By Harry Moran and 4 others |

Whilst litigation funders often dominate the conversation in the legal funding space, the role and influence of litigation insurers has only grown in recent years as they have expanded their provision of litigation risk solutions to claimants, funders, law firms, and in-house counsel.

An announcement from Litica revealed that Lloyd’s has extended its Coverholder approval to include Europe, thereby approving Litica Europe to underwrite commercial litigation insurance on behalf of certain Lloyd’s Syndicates. This latest extension from Lloyd’s follows on from its existing Coverholder approval for Litica in both the United Kingdom and Asia-Pacific.

In the announcement, Litica explained that this approval authorises Litica Europe to underwrite insurance for policies with adverse cost limits of up to €15 million, which it says is “one of the most substantial and material levels of authority granted by Lloyd’s Syndicates in the commercial litigation insurance space.” This extension will also allow Litica to offer bespoke solutions to the European market, allowing for tailored products that are more suited to Europe than the UK.

Litica also highlighted that it has now underwritten over €2.2bn of risk to date, with cases spanning a range of litigation and arbitration.

More information about the approval and Litica’s ongoing work can be found in the full announcement here.

Renovus Capital Partners’ Portfolio Company Angeion Group Acquires Donlin Recano

By Harry Moran and 4 others |

Angeion Group, a premier provider of end-to-end group litigation services, today announced the acquisition of Donlin Recano & Co. LLC, a distinguished leader in bankruptcy administration. This strategic acquisition enhances Angeion Group’s comprehensive suite of tech-enabled legal services, reinforcing its position as the market leader in group litigation support.

With a legacy of serving over 200 national clients across diverse industries, Donlin Recano brings decades of expertise in claims management, noticing, and bankruptcy case administration. By integrating its operations, Angeion Group is poised to set a new industry standard—leveraging technology, precision, and innovation to redefine the way complex bankruptcy matters are managed.

“Bringing Donlin Recano into the Angeion Group family allows us to apply our hallmark commitment to accuracy, innovation, and efficiency to an already well-respected leader in the restructuring space,” said Steven Weisbrot, CEO of Angeion Group. “Our vision is clear: we will continue to listen to our clients, anticipate their evolving needs, and deliver transformative solutions that exceed expectations.”

This acquisition marks a significant expansion of Angeion Group’s service offerings, seamlessly integrating Donlin Recano’s proven expertise with Angeion’s award-winning technology and client-first approach. Together, the combined division, Angeion Group Bankruptcy Services, will provide an elevated standard of service to law firms, financial institutions, and corporate clients navigating the complexities of bankruptcy and restructuring.

“We’re excited to see the momentum that Angeion Group is building both through organic and inorganic growth,” said Greg Gladstone, Vice President at Renovus. “Donlin Recano seamlessly complements Angeion Group’s extensive legal services capabilities by adding bankruptcy expertise, unlocking significant opportunities for growth and delivering enhanced value to our clients.”

With this acquisition, Angeion Group continues its trajectory of strategic growth and industry leadership, reaffirming its commitment to delivering best-in-class tech-enabled legal services across the litigation and bankruptcy sectors.

About Angeion Group

Angeion Group is a leading provider of legal notice and settlement administration services, leveraging technology, expertise, and data-driven strategies to deliver best-in-class solutions for complex litigation matters. With a reputation for excellence, innovation, and unwavering client commitment, Angeion Group continues to redefine industry standards.

IQuote Announces New Dubai Office to Support Global Technology Strategy

By Harry Moran and 4 others |

In the ongoing struggle to carve out opportunities within the competitive legal funding market, smaller regional funders are increasingly looking to technology-oriented strategies to try to grow their operations and compete with the established market leading companies.

An article in Insider Media covers an announcement from litigation funder IQuote Limited, who are expanding their operations with the opening of a new office in Dubai. IQuote, which was founded in Manchester in 2016, sees the Dubai office as a major step in its strategy to strengthen its technology capabilities, with plans to embark on a recruitment drive to staff this new office.

Along with this expansion to a new region, IQuote is also working on bolstering its Manchester office with new hires to build on its existing strength in the European market. IQuote is looking to recruit for several positions, including a Head of European Opportunities, Data and Risk Analysts to enhance financial forecasting, and auditors for account management and reporting. 

Craig Cornick, CEO of IQuote, highlighted Dubai’s place as “a global innovation hub”, with the new local footprint allowing the company to “tap into a wealth of talent and technological resources.” Explaining IQuote’s unified approach across these different regions, Cornick said, “By strengthening both our Manchester and Dubai teams, we’re ensuring that we have the resources and expertise needed to meet the increasing demand for our services across Europe and beyond.”