IMF commits $30m to new investment vehicles

Litigation funder IMF Bentham has committed $30 million towards two new investment vehicles, which will have a combined pool of $150 million.

The two funds will target cases and matters in Australia, Asia, Canada and Europe, and follows IMF’s launch of its $US200 million investment vehicle in February, which is solely focused in the US.

A fund managed by Partners Capital will invest $90 million in one of the new funds, while a special purpose vehicle managed by Amitell capital will invest $30 million in the other vehicle.

IMF’s commitment will be drawn from its internal cash reserves.

“IMF considers this to be a significant milestone for the group which completes its medium-term capital management platform and underpins its continuing transition from exclusively managing its own balance sheet, to also being a manager of third party capital,” the Perth-based company said.

“Fund 2 and Fund 3 are likely to draw down on the committed capital over a three-year period, with minimum six-monthly tranches applying.

“While it may take longer or IMF to receive its cash return from Fund 2 and Fund 3 relative to using 100 per cent of its own capital, by leveraging its investments IMF anticipates significantly higher returns in the medium to long term than it would expect to achieve by investing that capital directly into litigation funding assets.”

IMF engaged Mercury Capital Advisors as global placement agent and law firm DLA Piper as Australian legal adviser for the transaction.

IMF shares were 1.4 per cent higher to $2.05 each at 1:45pm.