The idea being that this should significantly increase the likelihood of a positive return given there should (at least in theory) be only a remote chance that all these smaller bets yield negative outcomes simultaneously.
However, the danger is when investors are sold what they are told is a diversified, low risk, investment but the individual sub-investments are either correlated to each other or to one or more common factors.
The growing popularity of litigation finance has been fuelled by billions of dollars from hedge funds, private equity and other institutional investors. Now a crowdfunding platform due to launch in the UK early next month is hoping to spread the word — and the high returns — to private investors. In recent years, money has been pouring into litigation finance businesses, which provide upfront funding for claimants who cannot afford to fight legal disputes in return for a share of any settlement or damages.
Originally published in Financial Times by Barney Thompson, legal correspondent on 23rd August 2018
Posted on 23 Aug. 2018
By Michael Lent, AxiaFunder Case Originator and Assessor
Posted on 23 Aug. 2018
By Rabin Tambyraja, Professional Investor and AxiaFunder shareholder
Posted on 21 May 2018
A NEW crowdfunding platform has launched in the UK that enables investors to fund litigation cases.
AxiaFunder went live earlier this month and has already fully funded its first case, a professional negligence dispute that was looking to raise £12,720. If the case wins, the expected return for investors is 60 per cent per year.
continue read at: http://www.p2pfinancenews.co.uk/2019/01/17/new-p2p-platform-launches-to-fund-litigation-cases/
Posted on 18 Jan. 2019
Here is the new episode of the top rated London Fintech Podcast. The in-depth podcast is between Mike Baliman the podcast founder/host and AxiaFunder Co-founder Cormac Leech.
As introduced by London Fintech Podcast:
Creativity springs eternal. Here is yet another new topic, one that no one could have imagined even a couple of decades ago. Litigation crowdfunding gives litigants a new source of funding and investors a totally new investable asset with non-correlated returns. Cormac Leech CEO and co-founder of AxiaFunder walks us through this complex landscape.
To listen to the podcast, please go to: https://londonfintechpodcast.com/lfp121-litigation-crowdfunding-w-cormac-leech-ceo-axiafunder/
Posted on 4 Feb. 2019
Written by Alex Heshmaty, a legal copywriter and journalist, sponsored by AxiaFunder
Posted on 4 Feb. 2019
When Cormac Leech, chief executive of new crowd funding litigation platform Axiafunder, is questioned about the potential 20-30 per cent returns offered to investors on its website, he doubles down.
Written by James Booth, CityAM reporter covering the legal and insurance sectors, published by CityAM on 11 Feb, 2019
Posted on 13 Feb. 2019
"If you want to be innovative with your investments, there is no shortage of choices promising lucrative tax-free returns — from funding legal cases to restoring historic properties.
A diverse range of investments can be put into Innovative Finance Individual Savings Accounts (Ifisas). These can be used to earn tax-free interest on loans to individuals and businesses."
Continue to read at: https://www.thetimes.co.uk/article/fancy-something-different-for-your-isa-try-a-little-innovation-r3b0ms6c5
Originally published in Financial Times written by Carol Lewis, on 2nd March 2019
Posted on 6th March 2019
“The idea of litigation finance is simple, legal cases cost money and sometimes a claimant is unable to afford to fight a case; so in exchange for money up front, they share the return of any settlement winnings paid out in the future. Burford Capital does this very successfully – but Cormac is trying to allow retail investors to fund smaller cases."
Continue to read at: https://brucepackard.com/how-to-suffer-loss/
Originally posted on Bruce Packard’s blog on 12 Oct., 2018
Posted on 6th March, 2019
Posted on 30th Aug. 2019
Once the preserve of hedge funds and other large institutions, private investors can now share in the potential high returns offered by litigation finance.
Read the article, go to: https://www.cityam.com/litigation-finance-comes-of-age/
NOT MANY alternative finance firms can boast that they earned 43 per cent for investors on their first ever case, and while of course, past performance is not a reliable indicator of future results, AxiaFunder was always going to do things differently
Read the article, go to https://www.p2pfinancenews.co.uk/2019/10/24/the-litigation-platform-thats-changing-the-game-for-investors/
Posted on 29 October, 2019
With yields at close to multi-century lows, equities valuations stretched, and Brexit dominating the headlines, attractive alternatives to cash are arguably limited. In this context, the double-digit returns offered by litigation funding, with no correlation to macro or political risk are potentially attractive to qualified investors.
Continue to read, go to https://www.altfi.com/article/5885_litigation-funding-a-profitable-portfolio-alternative-during-brexit
- The Only Free Lunch in Finance?
- Litigation finance industry opens up to private investors
- What are the risks facing an investor in litigation funding?
- The Best Kept Secret in Investing?
- New P2P platform launches to fund litigation cases
- London Fintech Podcast - Litigation Crowdfunding w/Cormac Leech CEO Axiafunder
- Litigation Crowdfunding: Socially Inclusive or Ambulance Chasing?
- Wisdom of crowds: startup brings crowd funding to litigation finance by CityAM
- Fancy Something Different for Your Isa? Try a Little Innovation
- How to Suffer Loss