NEW YORK--(BUSINESS WIRE)--LexShares (www.lexshares.com), the fintech platform that enables individuals and institutions to invest in litigation, has launched the LexShares Marketplace Fund I (LMFI). LMFI is LexShares’ first marketplace fund, which enables investors to gain exposure to multiple litigation finance assets through one investment vehicle. Previously, LexShares offered investments only in singular cases; LMFI now provides accredited investors access to a portfolio of legal claims, allowing for diversification across a broad range of legal matters.
LexShares, which launched in Fall 2014, is a platform that connects accredited individual and institutional investors with plaintiffs involved in lawsuits to make investments in their cases. If the plaintiff prevails, by adjudication or settlement, investors receive a portion of the recovered proceeds proportionate to their investments.
“Since inception, investor demand in our singular case offerings has been very strong. LMFI is a natural extension for LexShares in response to consistent feedback from investors who want greater access to multiple legal claim investments which are uncorrelated with capital markets,” said Jay Greenberg, Co-Founder and Chief Executive Officer of LexShares.
As of today, more than $16 million has been invested in lawsuits through LexShares across 40 case offerings. Nine matters have already reached finality. Of those, eight have resulted in a positive return, with one verdict in favor of the defendant. For offerings reaching finality, median IRR net of fees and expenses was 66%, with a median time to resolution of 15 months. LexShares’ largest case offering since inception is $3,775,000 and its smallest $85,000, with an average size of $408,000.
LexShares uses a combination of proprietary technology and proven expertise to originate and evaluate case investment opportunities. Diamond Mine, a software application developed in-house, searches federal and state court filings in real time and applies a proprietary algorithm to evaluate and score those cases. LexShares' investment team then diligences high-scoring cases and selects qualifying opportunities for investment.
LexShares targets business disputes and other types of meritorious commercial legal claims at all stages of litigation. LMFI will invest in cases posted to the LexShares platform as well as other litigation finance opportunities. LMFI will limit participation in the fund to 99 members and expects to have a maximum offering size of $25 million. For those investors who prefer to build their own litigation finance portfolios, LexShares will continue to offer the ability to invest in single case opportunities through its platform. Investors can learn more and invest in LMFI directly at www.lexshares.com.
“We are excited to bring an unprecedented level of access to our investors in this growing asset class while also providing critical financial resources to plaintiffs and their legal teams,” said Max Volsky, Co-Founder and Chief Investment Officer at LexShares. “LMFI will bolster LexShares’ ability to help plaintiffs with strong cases obtain redress against much better funded adversaries, allowing claims to be adjudicated based on their merits rather than financial resources.”
Investment opportunities posted on LexShares are offered by WealthForge Securities, LLC, a registered broker-dealer and member FINRA / SIPC. Private security transactions involve a high degree of risk, are illiquid, may have a long hold period and are not suitable for all investors. Investments in litigation are speculative in nature and may result in loss of entire principal.
LexShares is an online marketplace for investing in litigation. It connects plaintiffs in legal disputes with investors to fund their cases. Based in New York City with offices in Boston, LexShares is privately owned. For more information, visit www.lexshares.com.