IMF launches US$200M investment vehicle to scale up US operations
SYDNEY, 15 February 2017: Litigation funding company, IMF Bentham Limited (ASX: IMF, the Company), has launched a US$200 million litigation investment vehicle together with funds managed and advised by a large US hedge fund (collectively, the Funds), focused on the U.S. market. The Funds will invest up to US$150 million and IMF will invest up to US$50 million.
The Bentham IMF 1 LLC (Bentham IMF Funding Vehicle) investment vehicle is the first of its type for IMF and sets a precedent for the establishment of similar vehicles by the Company in other markets, including Australia.
IMF Managing Director and CEO, Andrew Saker, said the establishment of the Bentham IMF Funding Vehicle presented a significant opportunity for the Company and a major enhancement to its capital management structure.
“IMF has established an impressive track record in the United States since its establishment approximately six years ago. Co-funding an investment vehicle with a major hedge fund, we believe, underpins the future of our sector and IMF’s position as one of the world’s most experienced and successful litigation funders.
“The launch of this investment vehicle is consistent with our stated priorities for FY2017 of implementing a capital management plan to fund our US investments. The new capital structure will de-risk IMF and provide the Company with financial flexibility in the future.”
“The Company will continue to explore other opportunities to structure its capital management in similar ways in jurisdictions other than the US, including Australia and Asia, amongst others.
“While the US has been the largest litigation market for many years, and we expect that to remain the case going forward, we are very optimistic about opportunities for IMF in other markets,” Mr Saker concluded.
IMF, through its US-based subsidiary (Bentham IMF), has concluded 14 of the 45 investments it has made in the US over the past six years, and achieved an average internal rate of return (IRR) of 83%, a multiple on invested capital (MOIC) of 1.18x, a success rate of 64% and an average investment period of 1.4 years.
IMF has commenced and completed 187 matters since inception in 2001, which includes the above US matters, producing a MOIC of 1.55x, a success rate of 90% and an average investment period of 2.4 years.
Media/Further information: John Gardner, Citadel-MAGNUS +61 413 355 997