Litigation Capital Management Limited (AIM:LIT), an alternative asset manager specialising in dispute financing solutions internationally, is pleased to provide an update on its business for the 2024 financial year ended 30 June 2024.

We are pleased to report another successful year with eight investments concluding in the period generating realisations for LCM, inclusive of performance fees, totalling AUD$56.0m. This is compared to LCM’s invested capital of AUD$23.8m, representing a multiple on invested capital (MOIC) of 2.4x. This performance aligns with our long-term track record of an average MOIC of 2.7x from investments concluded within the last 13 years, and underscores the successful execution of our strategy.

Moreover, we have made a strong start to our 2025 financial year. Shortly after the 2024 financial year end, a single case investment concluded generating realizations for LCM of at least AUD$12.5m, including performance fees, compared to LCM’s invested capital of AUD$1.5m, representing a MOIC of 8.3x.

Period      Realisations (AUD$m)      Invested Capital (AUD$m)      MOIC multiple

H1                      28.4                                                     8.8                                                  3.2x

H2                     27.6                                                     15.0                                                  1.8x

FY24                 56.0                                                     23.8                                                 2.4x

Post Period     12.5                                                       1.5                                                   8.3x

The average duration of cases concluded in FY24 was 45 months – slightly longer than our general expectation of 36-42 months, which remains unchanged. This largely reflects the COVID related delays that we have previously communicated which impacted several of the investments that concluded in the period. Importantly, elongated time has not adversely impacted on investment performance.

We continue to invest in what we believe are the highest quality legal claims, collaborating with leading law firms and barristers in our respective markets. We have seen high demand for our capital in the second half of the year and expect to report New Commitments for FY24 in excess of AUD$250m (FY23: AUD$176m). It remains our key strategic priority to continue to grow New Commitments, and thus ensure LCM achieves additional financial scale.

Our current portfolio of investments, both direct investments that are entirely funded via our own balance sheet and those in which we are co-invested alongside our managed external funds, continue to perform in line with our expectations.

Patrick Moloney, CEO of LCM, commented:

“The performance of our concluded investments in our 2024 financial year highlights the strength and effectiveness of our investment strategy. Through our rigorous investment process, we have assembled a high-quality portfolio of uncorrelated legal finance assets that are positioned to deliver attractive future aggregate investment performance. Given our access to capital, further growing New Commitments remains our key strategic priority and we are well on track. We see significant upside potential here.

News in full

In the interview below LCM’s CEO Patrick Moloney outlines the Group’s performance and business model at last years Year End Results