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Dispute financing company Litigation Capital Management (LCM) has executed a portfolio finance agreement, it announced on Monday, to provide a “significant” finance facility to a subsidiary of a global building and infrastructure contractor, to fund a portfolio of its construction claims.
The AIM-traded firm said the large corporate portfolio transaction involved an agreement to fund up to 20 separate claims, subject to the satisfactory completion by LCM of its due diligence, seated in territories ranging from Dubai to London.
It said the transaction was originated through the company’s strategic alliance with Norton Rose Fulbright, and involved members of LCM’s team from Sydney, London and a specialist team established in the United Arab Emirates.
LCM said it was the only participant in the disputes finance market originating and executing corporate portfolio transactions of such magnitude, which the board said demonstrated its ability to create “innovative and bespoke” legal financing solutions that met the needs of the corporate.
As it announced on 10 July, LCM achieved four resolutions in both its building and construction portfolio and its aviation portfolio during the financial year ended 30 June, with its investment strategy of providing disputes finance on a portfolio basis continuing to deliver strong metrics for LCM.
“We are delighted to be announcing a further corporate portfolio transaction which originated as the result of our important relationship with Norton Rose Fulbright,” said chief executive officer Patrick Moloney.
“LCM has the most experienced team in the market for originating and executing such transactions which, as an investment strategy, has proven to achieve strong and consistent returns within a shorter time frame compared with traditional single-case investments.”
At 1530 BST, shares in Litigation Capital Management were up 7.44% at 78p.
