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Press release: Litigation Capital Management attracts blue chip investors to new US$150m Third-Party Fund

March 10, 2020

Press release: Litigation Capital Management attracts blue chip investors to new US$150m Third-Party Fund

Litigation Capital Management Limited (AIM:LIT), a leading international provider of litigation financing solutions, is pleased to announce the first close of a new third party fund of up to US$150 million, LCM Global Alternative Returns Fund (the Fund). In accordance with the Company’s strategy and as previously communicated to the market, the close of this Fund marks LCM’s return to managing third-party funds, following the building of a permanent source of balance sheet capital through the equity markets. Managed by LCM, the Fund will supplement the deployment of capital from LCM’s own balance sheet, significantly increasing its ability to invest in new opportunities in line with its stated strategy. The Fund will target global dispute finance investments including both single disputes and corporate portfolio transactions, further detail on the investment pipeline is set out below. Fund participants
  • The Fund’s cornerstone investors include firstly the large endowment of a US University and secondly, the asset management division of a large global investment bank. Both have extensive experience of investing in the litigation finance asset class and entrenched rights to participate in future funds raised by LCM, demonstrating their commitment to LCM and also to the asset class more widely.
  • Three further participants in the Fund include: a further US-based university endowment, a Swiss-based fund manager specialising in investing in litigation finance and a substantial European family office with significant investment experience in litigation finance.
Structure
  • The Fund will co-invest with investments from LCM’s balance sheet on a 75:25 basis
  • LCM’s balance sheet contribution (25%) will be invested and advanced on a monthly basis over the term of each investment, no upfront contribution will be required
  • Performance fees will be payable to LCM as fund manager on the basis of a deal by deal waterfall
  • In addition to receiving its 25% share of any profit from each investment from its co-investment, for the provision of its management services LCM will also receive:
–        25% of profit on each Fund investment as and when it matures over a soft return hurdle (full catch up) of 8%; and –        an outperformance return of 35% for all Fund returns over an IRR of 20%.
  • The Fund has a term of six years including an inception period of two years during which investments can be entered into (the Inception Period)
The Fund as at first close has raised US$140 million, leaving a balance of up to US$10 million to be raised in due course. The decision to hold a first close of the Fund before all commitments were ready to be made, was driven by a strong pipeline of quality investment opportunities with which the Fund could be seeded. The Fund will be seeded with nine single-case investments which include international arbitrations, class actions, commercial litigation and investor state treaty claims. These investments are not being seeded from LCM’s existing balance sheet portfolio which it will continue to manage. The total capital commitment of the seeded investments amounts to approximately US$33 million representing a total commitment of 22% of the Fund upon inception. LCM is confident that the Fund will be fully committed comfortably inside the two-year Inception Period. Patrick Moloney, CEO of LCM, commented: “The entry into this external fund provides a significant increase to our available capital and a boost to our investment capability, enabling us to broaden and accelerate the expansion of our portfolio with a view to ultimately delivering greater returns for shareholders. “It also constitutes the first step towards LCM operating a funds management business. Indeed, future funds will be underpinned by the entrenched rights of our cornerstone investors. “It is testament to our disciplined approach and track record that the Fund attracted such significant international investment in the sector, giving us scope to accept investment from only the very best and most experienced global providers of third-party capital into the asset class.” Nick Rowles-Davies, Executive Vice-Chairman of LCM, added: “The fact such high-calibre investors have insisted upon entrenched contribution rights in future funds is a very valuable endorsement of LCM’s ability to attract blue chip investment capital on a global scale. “We are delighted to welcome our new partners and look forward to working closely with them to capitalise on the growing number of attractive opportunities available in the global litigation finance space.” Further updates with respect to the Fund commitment and its performance will be made as appropriate. LCM Contact: Angela Bilbow Global Head of Communications abilbow@lcmfinance.com +44 (0)7469 816818 NOTES Litigation Capital Management (LCM) is a leading international provider of litigation financing solutions. This includes single-case and portfolios across; class actions, commercial claims, claims arising out of insolvency and international arbitration. LCM has an unparalleled track record, driven by effective project selection, active project management and robust risk management. 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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Announcements Commercial

Court of Appeal Shuts Down BHP’s Attempt to Overturn Mariana Liability Judgment

By John Freund |

The Court of Appeal of England and Wales today refused BHP’s application for permission to appeal the High Court’s landmark liability judgment in the Mariana disaster litigation.

The High Court found BHP responsible for the 2015 collapse of the Fundão tailings dam in Mariana, Minas Gerais, Brazil, concluding that BHP is liable for the disaster under both the Brazilian Civil and Environmental law.

The Court of Appeal heard BHP’s application for permission to appeal the decision on 12 March after BHP was refused permission to appeal by the High Court in January.  BHP asked the court for permission to contest the findings that it was a polluter, and that it had knowledge of the risks associated with the dam before the collapse. The mining company also challenged the finding that all claimants brought their claims in time.

The Court of Appeal’s refusal marks a further victory for the hundreds of thousands of Brazilian victims who have spent over ten years pursuing justice, and a major setback for BHP. The High Court’s liability judgment remains in force, and BHP has exhausted the ordinary routes by which it could seek to overturn it.

In today’s ruling, the court concluded that BHP’s proposed grounds of appeal have no real prospect of success and there is no other compelling reason for the appeal to be heard.  The decision means that the parties will proceed to the trial of Stage 2 of the proceedings, which will determine issues of causation, loss and damages. The trial evidence is to be heard from April 2027 to December 2027, with closing submissions listed for March 2028.

Lord Justice Fraser wrote in the decision: “I do not accept that any of the grounds relating to BHP’s liability for the dam collapse are reasonably arguable. I do not consider that there is any foundation for the different complaints that the trial judge failed to engage with BHP’s case."

Jonathan Wheeler, lead partner for the Mariana litigation at Pogust Goodhead, said: “The Court of Appeal has now joined the High Court in finding that BHP’s grounds of appeal have no real prospect of success - an emphatic and unambiguous outcome. BHP remains liable for the worst environmental disaster in Brazil’s history, and it will not be given another bite at the cherry.”

“Our clients have waited more than a decade for justice while BHP pursued every procedural avenue to avoid accountability; those avenues are now closed. We are focused on securing the compensation that hundreds of thousands of Brazilians have been owed for far too long.”

Announcements Commercial

Loopa Finance Wins at the Lexology European Awards 2026 in the Litigation / General Counsel Category

By John Freund |

Loopa Finance has been recognized as the winner in the Litigation – General Counsel Team category at the Lexology European Awards 2026, one of the leading recognitions in the international legal sector.

The award was received in London by Ignacio Delgado, General Counsel Europe at the firm, on behalf of Loopa Finance’s European team, composed of Ignacio Delgado (General Counsel Europe), Marina Gouveia (Investment Manager), Fernando Pérez Lozada (Senior Investment Manager), and Fernando Folgueiro (Managing Partner).

The Lexology European Awards recognize outstanding legal teams across the region through a methodology that combines independent research, quantitative and qualitative analysis, and thousands of nominations supported by clients and industry peers, as well as the annual research conducted by the Lexology Index (formerly Who’s Who Legal) and Client Choice.

The selection process is based on performance evaluations related to effective communication, commercial understanding, technical expertise, strategic management, and team strength, and is supported by a global community of more than 940,000 subscribers.

This recognition positions Loopa Finance’s European team among the leading practitioners in complex litigation and strategic legal management in Europe.

“This award reflects the strength of a team operating across two continents that understands litigation not only from a legal perspective, but also through financial analysis and risk management. It is the result of collective work and a rigorous, strategic approach to structuring complex disputes,” said Delgado during the ceremony.

More Than an Award: Validation of a Model

The award comes at a time of consolidation for the firm. Loopa Finance recently completed its rebranding process, evolving from Qanlex to Loopa Finance and reinforcing an identity aligned with its growth in continental Europe and its broader international positioning.

It also coincides with the closing of Fund III, raising €65 million to finance complex litigation and arbitration across Europe and Latin America, significantly expanding the firm’s investment capacity and supporting the continued growth of its platform in the region.

This milestone adds to the firm’s recent rankings, including its Band 1 classification by Chambers & Partners in Latin America and Europe, its recognition as “Highly Recommended” by Leaders League across multiple jurisdictions, and the inclusion of members of its team among the Thought Leaders in Third-Party Funding by the Lexology Index. Together, these results confirm the strength of Loopa Finance’s model and the consolidation of its team as a reference in the strategic financing of disputes at an international level.

About Loopa Finance

Loopa Finance is an investment fund specializing in the financing and monetization of litigation and arbitration across continental Europe and Latin America, supported by a technology-driven model and rigorous risk analysis. The firm provides capital to cover legal costs or monetize ongoing claims through non-recourse structures, where the recovery of the investment depends exclusively on the successful outcome of the case, assuming the financial risk of the dispute while fully aligning its interests with those of clients and law firms.

Announcements Commercial

Pravati Capital Partners with SEI to Bring Litigation Finance to Registered Investment Advisors

By John Freund |

One of the oldest litigation finance firms in the United States has announced a strategic partnership aimed at expanding mainstream investor access to the asset class.

As reported by Business Wire via Yahoo Finance, Scottsdale-based Pravati Capital has partnered with financial services firm SEI to provide registered investment advisors with structured access to litigation finance as an alternative investment option. The collaboration will leverage SEI's distribution platform to make litigation funding opportunities available within advisor portfolios.

The partnership reflects growing institutional interest in litigation finance as an alternative asset class. Historically, litigation funding has been difficult for mainstream financial advisors to access on behalf of their clients, with the market largely dominated by specialized funds and institutional investors. The Pravati-SEI arrangement seeks to bridge that gap by creating a more accessible pathway for advisors seeking diversification through non-correlated investments.

The announcement underscores a broader industry shift as litigation finance continues to move from a niche strategy toward greater acceptance within traditional wealth management channels. As the global litigation funding market grows — projected to reach over $25 billion in 2026 — partnerships like this one may signal a new phase of institutional adoption.