LCM CEO Patrick Moloney details that LCM has made strong progress in the first half of its fiscal year. Quality applications are up, and demand for legal finance is increasing as predicted. Most of the direct investment portfolio is balance sheet funded, and portfolio investments are reaching maturity. While timing remains somewhat unpredictable, that should smooth out as portfolio investments increase over time.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
LCM CEO Patrick Moloney details that LCM has made strong progress in the first half of its fiscal year. Quality applications are up, and demand for legal finance is increasing as predicted. Most of the direct investment portfolio is balance sheet funded, and portfolio investments are reaching maturity. While timing remains somewhat unpredictable, that should smooth out as portfolio investments increase over time.
LCM, via Polaris, details strong increases over the period. By the numbers:
- Total assets under management rose to AUD $322 mil by March—an increase of 92%.
- Applications increased by 5%, totaling 266.
- Total invested capital: AUD $99.4 million, which represents a 189% increase.
- Gross profits: AUD $5.4 million
- Total Equity: AUD $80.6 million.
LCM has made excellent progress in building portfolio finance agreements with a dozen resolutions in Aviation and Construction Corporate Portfolios—both of which are performing according to expectations. Partnership with DLA Piper is poised to expand reach into newer and less saturated global markets.
Chief executives remain confident of LCM’s ability to rise to the increased demand driven by the continued presence of COVID. It’s expected that financial unrest will continue until COVID is controlled around the globe. Even after a return to normalcy, the rise in insolvencies is expected to persist through the next year and beyond.
