AxiaFunder, one of the few litigation financing platforms that enables smaller investors access to a unique asset class, is reporting that its first AxiaFunder Housing Disrepair (HDR) £300,000 investment portfolio is progressing well.
AxiaFunder, a platform aimed at sophisticated and high-net-worth individuals, provides funding to legal cases where an entity is being sued. The funding by investors covers the legal costs with the anticipation that a victor will generate solid returns. Of course, the cases selected are deemed to have a good chance of a settlement in favor of the plaintiff. Obviously, past performance is never a guarantee of future returns but so far, no cases have been lost.
According to the AxiaFunder website, it has financed 14 cases with 6 wins and 8 ongoing. As it stands today, the average IRR is 48%.
Additionally, AxiaFunder has raised £815,000 to help finance a law firm pursuing a portfolio of Housing Disrepair cases (HDR).
In an email viewed by CI, the HDR fund is still in “early days” but appears to be on track to generate a 25% IRR.
After less than 3 months from closing: 3% of the portfolio has already settled, with a further 18% in settlement discussions. Our law firm partner is actively engaged, with 65% of the claims at, or past, the surveyor expert report stage. It is still ‘early days’, but the portfolio seems to be on track to reach the targeted 25%+ IRR with 3 claims that have already settled and are “likely to have sufficient proceeds to pay the current contractual returns.”
AxiaFunder indicated that they expect to launch further investment opportunities of this type in the coming months.
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