Market shares: financed for exceptional returns
- First third-party fund of $ 150 million invested at 91%
- The second third-party fund raised $ 200 million at the first close and has a target of $ 300 million at the final close
- Litigation Capital Management will co-invest alongside the fund
Litigation Capital management (LIT: 120p), a litigation finance provider that allows third parties to sue and recover funds from legal claims, has announced the first close of its second third party fund, LCM Global Alternative Returns Fund II.
The fund raised $ 200 million at the first close and an additional $ 100 million is expected to be raised in the coming months to bring the group’s assets under management (AUM) to $ 450 million. The new fund has a term of six years and will target global investments in litigation finance, including corporate portfolio transactions.
LCM will co-invest with investments from its own balance sheet, advancing a 25 percent contribution (on a monthly basis) over the life of each investment. This means that no initial contribution is required. Performance fees will be payable to LCM as fund manager as follows: 25% of the profits made on each investment as it matures on a moderate return threshold of 8%; and a 35 percent return on performance for investments that produce an internal rate of return greater than 20 percent. LCM will also receive its 25 percent share of any profit from each direct investment from its co-investment.
Investors responded positively, adding energy to the rise in stock prices that started after I rated the stocks as a solid buy, at 94p, and increased my target price from 140p to 150p (‘Good actions: price for a profitable result “, September 21, 2021). The operation also shows a total return of 55 percent on the point of entry into my Equity portfolio at a good price 2019. On a modest 10 times the earnings forecast for Investec Securities for the current year, and with 40 percent of the portfolio held directly by LCM lasting 25 months or more – the 10-year average project duration is 27 months – the potential for a drastic shift in profits continues to be underestimated. To buy.
■ Simon Thompson’s latest book Successful stock selection strategies and his previous book Stock selection for profit can be purchased online at www.ypdbooks.com, or by calling YPDBooks on 01904 431 213 to place an order. The books are not sold by any other source and are priced at £ 16.95 each plus postage and packing of £ 3.25 [UK].
October promotion: Subject to stock availability, books can be purchased at the promotional price of £ 10 each plus £ 3.25 for postage and packaging, or £ 20 for both books plus £ 3.95 for postage and packing
They include case studies of the companies in Simon Thompson’s discounted stock portfolio that have beaten the market, outlining the investment characteristics that have made them successful investments. Simon also highlights many other investment approaches and equity filters that he uses to identify small cap companies with investment potential. Content details can be viewed at www.ypdbooks.com.