AxiaFunder uniquely connects investors with pre-vetted litigation opportunities in the UK and internationally.
London, United Kingdom–(Vehement Media – July 21, 2022) – AxiaFunder’s Litigation Finance platform targets double-digit internal rates of return and uniquely connects investors with pre-vetted litigation opportunities within the UK and internationally.
AxiaFunder is a platform offering sophisticated high net worth retail investors and smaller professional investors direct access to for-profit litigation investments in a transparent way.
During the last quarter, AxiaFunder launched a new portfolio funding product with 2 key features:
1. Automatic diversification; and
2. An improved investor risk-reward ratio.
Over the past two months, over 800,000GBP has been invested in this product. The underlying assets during the initial period were a group of 244 housing disrepair claims. The investors backing these claims had 85% of their principal insured, mitigating the downside risk. The expected time to settlement for each claim is only 9 to 15 months, with around 5% facing the additional risk factor of going to trial. Capital and returns for each of the underlying 180 cases will be paid to investors as and when the case settles. The defendants for two of the claims have already indicated willingness to settle.
To mitigate operational risk, AxiaFunder monitors the progress on each of these 244 cases using an IT tracking system called Proclaim, which has already started periodic auditing by an external specialist of the details of a randomised sample of the case files (initially all cases reviewed).
The AxiaFunder case assessment team comprises 3 senior lawyers each with at least 12 years of post-qualification experience and an investment banker with over 25 years of investment research or structuring experience. AxiaFunder’s specialist professional team applies a 10-criteria screening approach to vet claim investments:
1. Are the underlying legal merits of the case strong?
2. Does the Defendant have the capacity to pay?
3. Is the claim large enough relative to the cost?
4. Is there adverse cost risk insurance?
5. Is the claimant’s legal team capable and experienced?
6. Is the law firm aligned and incentivised to win the case?
7 Is 3rd party funding legal in the jurisidiction?
8. Does the case have sufficient financing to the end of the trial?
9. Is the risk of security for costs properly addressed?
10. Are investors being sufficiently compensated for risk?
Only cases screening positively on all of these factors reach the platform for investment and the vetting process often takes several months and sometimes over a year. AxiaFunder launched its first cases in 2019 and to date has funded 14 commercial cases of which 6 have already been resolved positively.
Whilst in finance historical returns are never indicative of future returns, to date the reported average IRR on resolved cases is 48% per annum. In the future, the platform will offer investors access to both portfolio funding and commercial case investment opportunities.
Each portfolio offer is structured as a separate class of a tax-transparent limited partnership and can be accessed by retail investors in most countries.
Capital at risk. Returns not guaranteed. There is a significant risk of losing your entire investment if the case fails. Please read the full risk warning before deciding to invest.
The investments offered by AxiaFunder are relatively complex and relatively high risk. For regulatory reasons, they are only suitable for Sophisticated High Net Worth Investors.
Media Contact:
Company Name: AxiaFunder
Owner: Sophie Liu
Mail: sophie@axiafunder.com
Website: www.axiafunder.com