Another litigation funder has signalled its intention to close – the third business to leave the industry amid financial troubles this year. Litigation Capital Management Limited, which is listed on the London Stock Exchange, announced last week it had moved into an ‘orderly run-off’ following a series of unsuccessful investments. 

The existing portfolio will be managed to conclusion, no new investments will be made and any cash realised will be put towards repayment of the debt facility, the company said. 

LCM is headquartered in Sydney, with offices in London, Singapore and Brisbane. It provides finance for single cases and class actions. Its audited results for the year to June reflect 12 months when the business has struggled: total losses after tax were around £87m and had more than doubled on the previous year.

LCM was operating with net liabilities of £28m and made losses on seven of the eight investments which concluded in the year.

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The company said that investment performance had ‘deteriorated sharply’ over the past two years. In 2025-26 that deterioration was compounded by concentration, as a large amount of invested capital had been committed to a small number of cases, which were ultimately unsuccessful.

Last week, LCM entered into an agreement with Northleaf Capital Partners to borrow around £94m to facilitate an orderly run-off of the remaining portfolio. If the facility is repaid in full while case investments remain outstanding, Northleaf is entitled to 25% of the gross cash proceeds of those remaining investments, including any performance fees received from the funds.

The group said its ability to continue as a going concern was ‘materially dependent’ upon achieving forecast realisations from its investment portfolio and maintaining access to funding under the amended facility. But the timing and quantum of investment realisations are ‘not wholly within the group’s control’.

LCM's share price has now dropped to 0.5p; it traded at almost 11p near the start of this year.

This is the third litigation funder exit this year, following the entering into administration of Fenchurch Legal  in April and Woodville Consultants in July.