IMF’s USA result

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IMF’s USA result

Bentham IMF (ASX: IMF) has announced a material case settlement in the USA. It’s a result we feel validates their US expansion.

While there are limited case details at this stage (confidentiality in the US is more intense than in Australia, as the litigation funder can be deposed during a case if their identity is revealed), IMF has announced that it will receive $16 million of income from an investment of $8.4 million. This is a return on investment (before tax) of ~90 per cent in the space of 4 months, and subsequent payments may be forthcoming!

The result should not be extrapolated, particularly considering that the company has been operating in the US since 2011. But it does suggest that IMF is gaining sufficient traction in the US to begin generating returns that are comparable to its Australian operations.

At the end of the 2014 financial year, IMF’s claims book was valued at $2 billion, of which $322 million comprised matters funded in the USA. We feel confident that management can continue to grow this book to around $2.5 billion.

This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.

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3 Comments

  1. David
    :

    They started in 2011 and have only generated results from 3 cases so far in the US. From my read, the material case settlement is only one case, albeit at a good return.

  2. David
    :

    Hi Ben
    I was wondering why you think their foray into the US has improved as their track record isn’t that great and what do you think of the management team of IMF?

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