Risks for investors in litigation funding | AxiaFunder
This blog examines the nature of the risks facing investors in litigation funding. What are the risks of litigation funding as an investment opportunity?
Litigation funding case statistics | AxiaFunder
Last updated on 15 December 2020.

To date, 10 litigation cases have been fully funded via our platform, of which three have been successfully resolved, generating a 43-94% return to investors each over a period of 8-15 months. Meanwhile, the other 7 cases remain ongoing. Total amount of capital raised to date is £1,247,716 with an average IRR on the resolved cases equivalent to 69.8%. There are no losses to date. 
Litigation funding versus other investment opportunities
In contrast to other investment opportunities (e.g., equities or real estate), litigation funding has zero correlation with the fluctuations in the broader economy and other assets. It is likely that litigation funding might even be inversely correlated with the state of the financial markets if litigation increases during an economic recession — namely due to a sharp increase in insolvencies. The demand for litigation funding is expected to increase as more companies file lawsuits related to contract disputes and business insurance claims arising from the COVID-19 pandemic. Many of these litigants may require capital to pursue their claims, in which case the non-recourse nature of litigation finance investments should stay particularly appealing.
Single case versus portfolio litigation funding
One type of investment opportunity that should live up to its claim of offering real diversification, is a portfolio of legal cases – obviously as one part of a well-structured investment strategy spread across several asset types. While the outcome of any single case is clearly binary – the case can either win - in other words, the claimant is successful (either through a negotiated settlement or the damages awarded by the court at trial), or the case can lose. Thus, any litigation investor can significantly increase the likelihood of a positive return of their overall litigation investment by dividing their total investable sum amongst a number of claims.
Litigation Finance Journal Podcast


Cormac Leech, director of AxiaFunder, discusses the company’s general approach and how crowdfunding platforms should be considered in the context of the code of the Association of Litigation Funders. The podcast also discusses AxiaFunder’s current priorities.
 
Evaluating Litigation Crowdfunding in light of the Code of the ALF

Using a platform to fund commercial litigation is a novel approach which, by necessity, requires careful consideration by solicitors and claimants before proceeding. One lens through which to evaluate litigation crowdfunding is the Code of the Association of Litigation Funders (ALF). 
Profile Review by P2P Guarantee

This article is part of the profile review performed by P2P Guarantee and the views expressed are those of the author (not affiliated with AxiaFunder).

Litigation funding is an interesting investment opportunity, mainly for diversifying and generating high returns, but which also carries its risks. As long as an investor knows what he is doing, the author believes these waters can be navigated with success. 
Profile Review by Valiqo


This article is part of the Profile Review performed by Valiqo and the views expressed are those of the author (not affiliated with AxiaFunder).

At the time of writing, October 2020, 10 cases have been funded through the platform, 8 of which are still ongoing and 2 have been successfully resolved. The latter cases generated a 43% and 94% return on investment in 8 and 15 months, respectively.
First secondary market trade of litigation funding assets completes

AxiaFunder has assisted with a secondary market trade of litigation funding assets which closed today. The assets were sold to 12 investors, at a 20% premium to the original issuance price in December 2019. 
Litigation funding with Cormac Leech podcast | AxiaFunder


In this podcast, Jean Galea and Joseph Galea meet Cormac Leech from AxiaFunder to discuss how investors can potentially make money from litigation cases. 
Profile Review by Explore P2P


Hedge funds have made big returns funding litigation cases. With AxiaFunder, you can now participate too  


This article is part of the Explore P2P Profile and the views expressed (excluding those contained in the interview segment) are those of the author (not affiliated with AxiaFunder). 

AxiaFunder is the most interesting new crowdfunding site we have seen in the last year     --- Explore P2P 

Todocrowdlending.com - Interview with Cormac Leech AxiaFunder CEO 2020


This article is from todocrowdlending.com and the views expressed (excluding those contained in the interview segment) are those of the author (not affiliated with AxiaFunder).
 

“The first litigation crowdfunding platform in Europe. A very interesting platform which brings a new asset class… and might be a solution to take into account for those of you interested in finding potentially profitable investments with literally 0 correlation to the stock markets.” 
---  todocrowdlending

Originally published on todocrowdlending.com by Jesus Arias on 02 June 2020
AxiaFunder returns 94% to investors through second commercial litigation case win

AxiaFunder returns 94% to investors through second commercial litigation case win  This article is from Yahoo Finance and the views expressed are those of the author (not affiliated with AxiaFunder).  

Yahoo finance reported on AxiaFunder’s second case has resolved successfully, returning 93.75% to investors in only 15 months. It also reported that the most recent investment opportunity offered on AxiaFunder’s platform reached its funding goal in less than 24 hours from launch. 

Originally published on Yahoo Finance on 24 April 2020 https://finance.yahoo.com/news/axiafunder-returns-94-investors-second-090000581.html
Opportunity Knocks for Litigation Finance

Cormac Leech, AxiaFunder’s CEO has outlined the increasing need for litigation funding and the ways in which AxiaFunder is placed to bridge that gap in funding. 
  • Litigation finance: the changing face of the commercial litigation landscape.
  • COVID-19 pandemic: how the pandemic can be an opportunity for growth.
  • Supporting legal practitioners: litigation funding & cash flow management.
Originally published on New Law Journal on 09 April 2020 https://www.newlawjournal.co.uk/content/opportunity-knocks-for-litigation-finance.
What are legal merits? | AxiaFunder
Visit here to read how we explain legal merits and how we take careful consideration of other important factors in cases we take on for investment.
Litigation funding & rule of law
What is the rule of law, and how does litigation funding improve it?
The best kept secret in investing?
Having experienced a significant broad-based rally in equity and property markets over the last 9 years, arguably now is a good time for eligible investors to look to diversify their exposure across other asset classes - ideally those with little or no correlation with traditional risk markets. In this regard, litigation funding seems like an attractive option although not without its own specific risks. 

By Rabin Tambyraja, Professional Investor and AxiaFunder shareholder

Posted on 21 May 2018
New P2P platform launches to fund litigation cases


AxiaFunder, a new platform for crowdfunding litigation based in the UK, was launched earlier this January. The first case offered from AxiaFunder has already been fully funded. It was a dispute concerning professional negligence that was looking to raise £12,720. Investors can expect a return of 60% per annum if the case is successfully resolved.  Across all cases AxiaFunder predicts a return that will be on average within the 20-30% range. This is still a very high return when compared even to other alternative finance investments.  

Read the full article by Kathryn Gaw, originally published on 19th January 2019 at: http://www.p2pfinancenews.co.uk/2019/01/17/new-p2p-platform-launches-to-fund-litigation-cases/

Posted on 18 Jan. 2019
Litigation finance industry opens up to private investors

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
London Fintech podcast - Litigation crowdfunding w/Cormac Leech CEO Axiafunder

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