- Assets under management (AuM) rise a third to A$336m
- Annual adjusted operating profit increases 47 per cent to A$16.4m on 3 per cent lower revenue of A$37m
- A single case in New Zealand produces 300 per cent return on invested capital
- US$150m third-party fund now has 88 per cent commitments and follow-on US$300m fund to launch shortly with first close before year-end
Litigation Capital Management (LIT:94p), a provider of litigation financing that enables third-parties to pursue and recover funds from legal claims, has successfully navigated the Covid-19 pandemic and looks set to deliver bumper returns for shareholders in the coming years.
Despite the pandemic causing disruptions to the court and arbitration process, and in progressing due diligence on applications, Litigation Capital still made investment commitments of A$109m having assessed 572 applications (10 per cent rise year on year) in the 12 months to 30 June 2021, albeit that was down from A$147m in the prior year. Given the group’s impressive track record – only 11 financial losses from 237 investments in the past decade and cumulative return on invested capital (ROIC) of 153 per cent – it’s no surprise to see the third-party fund Litigation Capital launched in December 2019 now 88 per cent fully invested (including projects in due diligence). This helped lift AuM by a third to A$336m.