Litigation finance comes of age
The UK’s first litigation crowdfunding platform, AxiaFunder, which launched in January, enables primarily high-net-worth and sophisticated investors to provide funding to claimants who can’t afford to pay for their legal disputes. In return for their investment, investors receive a fixed return on their capital if the case wins. Factoring in some losses, average returns are expected to be between 25% and 30% a year although the outcome of each case is binary, making it important to spread your investment across several cases.
The platform’s first case, a professional negligence dispute that was seeking to raise £12,720, was funded in January and settled in August for an investor return of 43% in 8 months. Meanwhile, AxiaFunder’s second case, a breach of contract by a property developer which was seeking to raise a minimum of £12,000, was funded – less 8 hours after going live on the platform. Structured as an Innovative Finance ISA (IFISA) bond, it targets a fixed return of 75% a year if the case wins. To date this case is progressing well and has already accrued interest (if successful) of 56.25%. AxiaFunder’s third case raising £40,000 was funded in under 30 minutes. There is now a fourth case available for funding in the AxiaFunder platform that offers potentially high returns.
Continue to read, go to: https://www.cityam.com/litigation-finance-comes-of-age/
Originally published in CITYA.M. written by Emily Perryman, on 24 Oct. 2019
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