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Alternative asset manager Litigation Capital Management swung to an annual loss as revenue but touted optimism ahead as economic pressure owing to the pandemic would lead to an increase in insolvency events, boosting demand for disputes finance.
For the half year ended 31 December 2020, the pre-tax loss was A$1.37 million from a profit of A$16.7 million year-on-year as revenue fell to A$8.1 billion from A$24.1 billion.
The company said 266 applications for litigation finance were received, a 5% increase on the same prior year period.
Assets under management increased by 92% to A$322 million by 8 March 2021.
'In light of the uncertainty of global markets and the impact COVID is having on economies globally and the changing investment landscape, we are considering either an upsize of the existing third-party fund or a new second fund,' the company said.
'We are well advanced in those considerations and in discussions with relevant stakeholders,' it added.