Litigation Capital Manag... Share Discussion Threads

[bigbadaussiebear] 04/3/2021 08:36

6% bid/offer spread....

[bigbadaussiebear] 27/2/2021 10:42

Pretty decent recovery and great volume.

Atleast there are now less weak hands holding....

[greenknight1] 26/2/2021 13:24

At the moment, finding cases to invest in is not an issue, it's having the available capital to invest to keep up with demand. I would guess they will focus on investing what capital they have before moving into new geographies (which would use valuable capital). Could be wrong though.

[waterfall city] 26/2/2021 12:54

Do they plan to open a US office I wonder

[tomps2] 26/2/2021 08:36

LIT are giving a FY20 results presentation followed by Q&A, with Patrick Moloney, CEO & Nick Rowles-Davies, Executive Vice Chairman.
Wednesday 17th March 2021, 9am.
Register:

[bigbadaussiebear] 24/2/2021 07:54

Hard to know how many cases will conclude before June 30.

But I would say they will easily do $20m NPAT in FY22 and probably closer to $30m NPAT in FY23.

What people don't realise is the business has almost the same fixed costs as they scale. Since the IPO/merger with Chancery costs haven't increased much and each investment manager is cable of looking after a large number of cases.

So all the leverage from the asset management business (including possible 35% performance fees) are likely to translate to bottom line growth and margin expansion

[maddox] 23/2/2021 22:17

This loan may be secured - but secured on what exactly? Their assets are sunk costs in legal finance cases which are of an unknown duration and have further funding commitments attached to them. These are not the sort of asset that lenders like, add to that some flexibility requirements and it's not surprising that the pricing escalates.

[williamcooper104] 23/2/2021 17:16

Nobodies expecting them to fund at anything close to base But they should not be raising debt at higher than average CCC yields Near bankrupt companies have gotten cheaper funding recently

[makinbuks] 23/2/2021 16:59

I find that video very vague and lacking in proper detail. There was a comment on here that they were tight lippped and this is another example. They clearly believe they are undervalued but they need to understand investor relations better if they're going to deliver a re-rating

[hpcg] 23/2/2021 09:08

Some of you need to have experienced the real world. If you think many corporations get something close to base rates you need to have a think. If you don't think LCM is a risky proposition then again you need to have another think. The history of cases is that the IRR is well beyond 13% (video quotes 78%) so the critical thing for us is that it uses the capital for cases and not for general corporate purposes.

[bigbadaussiebear] 23/2/2021 08:44

Yep won't be long till they announce raising more third party capital to manage for 35% performance fees..

[robsy2] 23/2/2021 08:21

you tube.
Thanks BBAB. He comes over well enough. As he says, no point diluting shareholders at what he sees as an undervalued business. Also he needs to reward debt lenders to get them excited about funding expansion , as the business scales up.
He says that the credit is needed to fund expansion and meet demand from corporates.

[greenknight1] 23/2/2021 08:18

Great stuff

[bigbadaussiebear] 23/2/2021 07:31

Straight from the horses mouth (CEO)

hxxps://youtu.be/TUEM025wOkk

[bigbadaussiebear] 23/2/2021 07:30

Straight from the horses mouth (CEO)

hxxps://youtu.be/TUEM025wOkk

[bigbadaussiebear] 23/2/2021 07:30

Straight from the horses mouth (CEO)

hxxps://youtu.be/TUEM025wOkk

[williamcooper104] 22/2/2021 18:38

At $50m you wouldn't do a public bond issue - far too small It's a private placement to an institutional lender/debt fund

[adamb1978] 22/2/2021 18:00

They'd have got this facility arranged far quicker and with lighter due diligence than a bond offering. It also has flexibility in terms of when its drawn (open for the next 2 years) - perhaps thats why they paid a perceived higher rate.

Suggest an email to the CFO probably makes sense for anyone who has real concerns.

[tradertrev] 22/2/2021 17:47

The cost of this funding is even more remarkable given that it's secured debt.

[williamcooper104] 22/2/2021 16:03

Here's the other thing When you borrow from a bank they really really do not want to enforce When you borrow from a PE/credit fund - they're only too happy to pick up the business on the cheap Totally different type of creditor