LionFish records first successful litigation investment

RBG Holdings plc (AIM: RBGP), the professional services group, is pleased to announce that LionFish Litigation Finance Limited (“LionFish”) has recorded its first successful litigation investment since its launch.

In May 2020, RBG launched LionFish as a new player in the third-party litigation funding market, investing in cases run by law firms other than the Group’s own, Rosenblatt Limited (“RBL”). LionFish is led by experienced Managing Director, Tets Ishikawa.

While the return is not material to the Group’s forecast financial results, the successful investment provides a gross two times money return over and above invested cash and confirms that LionFish can deliver significant returns from its portfolio of investments.

Part of the Group’s approach to litigation finance is to sell a percentage of its participation rights in the cases LionFish invests in, and this reported return is pre-investor payout.

As of 31 December 2020, LionFish has received 240 enquiries for finance, and seven cases have been invested in. LionFish has made a cash investment of £1.8 million across the seven cases, with a total capital commitment of £4.9 million. The expected average investment duration is around two years.

Nicola Foulston, CEO, RBG Holdings plc, said:

“This is a proof-of-concept moment for our litigation finance strategy. The success of this first investment demonstrates that LionFish can make a significant contribution to the Group, but also deliver substantial returns to investors who acquire participation rights. We believe this will make LionFish an even more attractive prospect. Congratulations to Tets and the LionFish team.”