RNS Number : 6534B
RBG Holdings PLC
15 February 2022
15 February 2022
RBG Holdings plc
("RBG" or the "Group")
GBP20 million litigation investment arrangement & Investor
RBG Holdings plc, the professional services group, has today
announced that its subsidiary, LionFish Litigation Finance Limited
("LionFish"), has agreed a GBP20 million litigation investment
arrangement (the "Arrangement") with a large alternative investment
firm (the "Firm"). LionFish finances litigation matters being run
by solicitors outside the Group in return for a significant return
on the outcome of those cases.
Under the terms of the Arrangement, the Firm will participate in
all of LionFish's litigation investments, investing up to 75% in
each of LionFish's investments across the portfolio over a two-year
period. LionFish will be entitled to receive a significant share of
the returns of the Arrangement after a high single-digit return
hurdle has been met, therefore providing significant additional
potential returns to LionFish beyond its own investment.
LionFish will have sole discretion in terms of which investments
to pursue within a broad set of agreed parameters (similar to
LionFish's current investment parameters). The focus of the
Arrangement will be on maintaining LionFish's highly selective,
quality-focused investment standards, without any undue deployment
pressure. LionFish will also be responsible for the administration
of each underlying litigation investment.
The Arrangement provides LionFish with significant additional
capital flexibility in the investments it makes, allowing it to
manage a more diversified and granular portfolio of risks off
balance sheet, as well as to move away from the investor sales
model currently being used to reduce risk. By partnering with a
large alternative investment manager, LionFish has the opportunity
to extend or repeat the Arrangement on a rolling basis, potentially
providing a long-term flexible capital source that can grow in line
with the business
The Arrangement has been approved by RBG's banking partners and
is not a debt or credit facility. The Group's balance sheet will
remain unchanged as a result of the Arrangement.
Nicola Foulston, CEO of RBG Holdings plc, commented : "This
arrangement is a significant development in LionFish's long-term
growth, and a validation of our decision to enter the third-party
litigation funding market. The arrangement will support our move
away from our current model of selling participation rights in
cases to investors. It will provide LionFish with the right kind of
flexible capital to allow the management team to focus on quality
of profits, not the quantity of monies deployed into litigation
Tets Ishikawa, Managing Director of LionFish, commented : "We
are delighted to have negotiated this highly innovative and unique
structure with a major alternative investment firm. It increases
our capacity to invest in litigation funding without falling back
on a low-margin, deployment-focused fund management model. The
arrangement allows us to diversify our own investment book and
enhance the return profiles from our core investment business. This
sets up LionFish for an exciting and profitable period of
Group CEO, Nicola Foulston and Tets Ishikawa, Managing Director
of LionFish will host a live investor presentation about the
litigation investment arrangement via the Investor Meet Company
(IMC) platform on 21 February at 10.30am.
The online presentation is open to all existing and potential
shareholders. Investors can sign up to Investor Meet Company for
free and add RBG Holdings plc via
Investors who have already registered and added to meet the
company, will be automatically invited.
Questions can be submitted pre-event via the Investor Meet
Company dashboard up until 9am the day before the meeting or at any
time during the live presentation. Although they may not be able to
answer every question received, the presenters will address the
most prominent within the confines of information already disclosed
to the market.
RBG Holdings plc Via SEC Newgate
Nicola Foulston, CEO
Singer Capital Markets (Nomad and Tel: +44 (0)20 7496 3000
Shaun Dobson / Alex Bond (Corporate
Tom Salvesen (Corporate Broking)
SEC Newgate (for media enquiries) Tel: +44 (0)7540 106366
Robin Tozer/Isabelle Smurfit email@example.com
About RBG Holdings plc
RBG Holdings plc is a professional services group, which
comprises the following divisions:
RBG Legal Services Limited ("RBGLS")
RBGLS is the Group's legal services division which combines the
businesses previously operated by Rosenblatt Limited and Memery
Rosenblatt is one of the UK's pioneering legal practices and a
leader in dispute resolution. Rosenblatt provides a range of legal
services to its diversified client base, which includes companies,
banks, entrepreneurs and individuals. Complementing this is
Rosenblatt's increasingly international footprint, advising on
complex cross-jurisdictional disputes.
Memery Crystal offers legal services in a range of areas such as
corporate (including a market-leading corporate finance offering),
real estate, commercial, IP & technology (CIPT), banking &
finance, tax & wealth structuring and employment. Memery
Crystal is one of the leading legal practices in the UK to advise
the emerging cannabis sector on a wide range of business issues.
Memery Crystal offers a partner-led service to a broad range of
clients, from multinational companies, financial institutions and
owner-managed businesses to individual entrepreneurs.
LionFish Litigation Finance Limited ("LionFish")
The Group also provides litigation finance in selected cases
through a separate arm, LionFish Litigation Finance Limited.
LionFish finances litigation matters being run by other solicitors
in return for a significant return on the outcome of those cases.
As such, the Group has two types of litigation assets -
Rosenblatt's own client matters, and litigation matters run by
third-party solicitors. LionFish is positioned to be a unique,
alternative provider to the traditional litigation funders.
Convex Capital Limited ("Convex Capital")
Convex Capital is a specialist sell-side corporate finance
boutique based in Manchester. Convex Capital is entirely focused on
helping companies, particularly owner-managed and entrepreneurial
businesses, realise their value through sales to large corporates.
Convex Capital identifies and proactively targets firms that it
believes represent attractive acquisition opportunities.
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(END) Dow Jones Newswires
February 15, 2022 01:59 ET (06:59 GMT)
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