NEW YORK--(BUSINESS WIRE)--LexShares, an online marketplace for investing in litigation, is now open to institutional investors. LexShares is a platform that connects investors with plaintiffs in commercial lawsuits in order to make an equity investment in a specific case. If the plaintiff’s case prevails, the investor will receive a percentage of the proceeds from a settlement or court judgment. Launched late last year for individual investors, LexShares is now available to institutional investors as well, enabling hedge funds, family offices, endowments, pensions and other financial institutions to participate in this new and potentially lucrative asset class.
“Soon after the launch of LexShares, it became clear that this innovative asset class, that is not correlated with capital markets or macroeconomic factors, was appealing to institutional investors,” said Jay Greenberg, Co-Founder and CEO of LexShares. “The LexShares model of crowdfunding lawsuits hasn’t changed. What has changed is that individual investors will now be investing alongside institutional investors. The additional funds will enable us to help more plaintiffs.”
Institutions can invest capital at scale into commercial legal claims through LexShares in an economically efficient way. LexShares fee model is unique in that there are currently no upfront fees or management fees charged to investors. Investors only pay a fee if their investments are profitable. All investment opportunities posted on LexShares have undergone the company’s rigorous review processes, lead by a team of attorneys and securities professionals.
“We are excited about the level of support and confidence we have received from institutions in our business model, our underwriting capabilities and our track record,” said Max Volsky, Co-Founder and Chief Investment Officer at LexShares. Volsky has overseen more than 10,000 investments in legal claims since 1999 and is the founder of litigation finance fund LexStone Capital.
“In a very expensive legal system, the ability to raise money online can be a game changer for clients who need help financing their cases,” said George Sitaras, Partner at commercial litigation firm Marco & Sitaras in New York. “Having reliable financing options is critical to the process.”
LexShares is an online marketplace for investing in litigation. It connects plaintiffs in commercial legal disputes with investors to fund their cases. Based in New York City, LexShares is privately funded by Atlas Venture and prominent angel investors. For more information, visit www.lexshares.com. Securities offering made through WealthForge, LLC member FINRA/SIPC.