24th Feb 2023 14:08
(Alliance News) - Litigation Capital Management Ltd on Thursday said a partial award was granted in favour of one of its 100% direct balance sheet investments.
The asset manager specialising in dispute financing solutions said a partial award on liability and quantum was granted in favour of one of its 100% direct balance sheet investments. It was heard by an ICC International Court of Arbitration tribunal.
"This means that the funded party has succeeded in the claim and the only matter yet to be determined is the costs award," LIT explained.
The company expects the funded party to also be successful in an award of its costs, however, it noted that costs award do not affect LCM's interest or its potential returns.
It added that the award is subject to challenge, but LCM is "confident" that the award will be upheld. The award is also expected to generate a return in line with management expectations.
LCM has invested approximately AUD2.9 million, about USD2 million, in this arbitral dispute. The investment performance is protected by a compounding interest rate.
Chief Executive Officer Patrick Moloney said: "We are pleased with the positive adjudication in this investment. Despite the Respondent challenging the award we are confident that the award will be maintained. In the current uncertain macro-economic environment our direct investments, as well as those made alongside our fund investments, continue to demonstrate the non-cyclical and uncorrelated nature of the returns from litigation funding."
Shares in Litigation Capital were up 0.8% to 72.54 pence each in London on Friday afternoon.
By Sophie Rose, Alliance News reporter
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