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RNS Number : 6352F Litigation Capital Management Ltd 19 July 2021 19 July 2021 Litigation Capital Management Limited ( AIM : LIT ) , a leading international alternate asset manager of disputes financing solutions , is pleased to provide a market update for the year ended 30 June 2021 ( FY21 ) . Litigation Capital Management Limited ( " LCM " or " the Company " ) Market Update LCM's 10 year track record remains robust with 10 year portfolio ROIC as a³0 June 2021 of 153 % and cumulative portfolio IRR of 78 % The Global Alternative Returns Fund ( GAR ) is currently 76 % committed achieved in 15 months , versus an investment target period of 24 months . Overall capital commitment of US $ 115m of US $ 150m . The second fund is progressing well with a close targeted for Q3 of this calendar year Applications increased 10 % , with 572 applications received during FY21 Conversion into active investments was also consistent at 3 % , with an increase in high profile quality investments requiring increased resource allocation . This conversion rate demonstrates LCM's discipline and consistency in applying its rigorous due diligence in investment selection Whilst all other scale metrics showed an increase on the year prior , the level of commitments was down due to our due diligence and investment selection taking longer due to COVID . This increased due diligence time recognises a general slow down in all sectors of legal services consequent upon COVID Total portfolio capital commitment of $ 181m comprises $ 105m of Direct investments alongside a further $ 76m of Fund co - investment maintaining a diverse portfolio of investments Patrick Moloney , CEO of LCM , commented : " LCM and our team have performed very well in what has been a tough and disrupted year The GAR Fund is now over 75 % committed , and we are making significant progress on the second fund with strong support from both existing and new investors . Notwithstanding some disruption to global justice systems , LCM's portfolio of disputes continues to mature . " We are pleased to have achieved a significant resolution of an investment close to the end of the financial year which has generated strong revenue and exceptional performance metrics . " We look forward to the coming year with optimism and an expectation that global economic conditions will be very conducive to growth . Direct Investment LCM's direct investments fall into two categories : Direct Balance sheet investments 100 % funded by LCM ; and Co - Investment funding alongside the Fund LCM manages a direct investments portfolio with a capital commitment of $ 105m , which now comprises 30 separate investments including 8 investments in our acquisition strategy . Our Corporate Portfolios continue to achieve resolutions with consistent metrics . Our portfolio of direct investments is progressing as anticipated , with our most recently announced resolution achieving an IRR of 121 % and a ROIC of 313 % . Enquiries Asset Management LCM has now committed 76 % of the US $ 150m Fund across 22 projects while maintaining diversity across commercial litigation , insolvency disputes , class actions and arbitration . All investors in Fund I have expressed a strong interest to participate in Fund II which is targeted at a size de S $ 300m . This demonstrates the strength of the relationships developed since launching Fund I in March 2020 . Application conversions were marginally lower at 3 % as the restrictions imposed in response to the COVID pandemic continued across the globe . This expected lowering in conversion reflects LCM's rigorous due diligence adapting to market conditions particularly in the area of recovery . Despite the challenges faced and the limited client interaction , LCM added a number of high quality and high profile investments to its portfolio during the period . Notwithstanding these challenges , LCM maintained its rigorous investment selection process , ensuring the future performance of our portfolio is preserved and delivers in line with our track record . Strategic Alliances LCM's Strategic Alliances continue to generate applications and , as restrictions in theUK start to lift , we expect to see this increase as we resume business meetings and develop the investment selection process with the teams we work with . The accompanying market update presentation is available on LCM's website : https://www.lcmfinance.com/shareholders/investor-presentations-results/ Page 1 of 2