Litigation investment platform for investors and individuals LexShares has launched its debut marketplace fund.
A target for the LexShares Marketplace Fund I has not been disclosed, but the firm has set a limit of 99 contributors and a maximum offering size of $25m. Prior to the vehicle, the platform only allowed investors to back companies on a single case. The backers are now able to back via one platform and gain access to portfolio of legal claims.
Launched in 2014, the platform allows individual and institutional investors to connect with plaintiffs in lawsuits to make investments in the case. If the plaintiff wins through adjudication or settlement, the investors receive a portion of the recovered proceeds proportionate to their investment.
The platform uses an algorithm to evaluate and score legal cases, with the team then selecting the high-scoring cases for investment opportunities.
Since its launch, over $16m has been invested in lawsuits, through the platform, across 40 cases. Nine of these cases have reached finality and a median IRR net of fees and expenses of 66 per cent.
LexShares co-founder and CIO Max Volsky said, “We are excited to bring an unprecedented level of access to our investors in this growing asset class while also providing critical financial resources to plaintiffs and their legal teams. “LMFI will bolster LexShares’ ability to help plaintiffs with strong cases obtain redress against much better funded adversaries, allowing claims to be adjudicated based on their merits rather than financial resources.”
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