LexShares launches USD100m Litigation Finance Fund

LexShares, a specialist in commercial litigation finance, has launched LexShares Marketplace Fund II (LMFII). 

With a USD100 million target fund size, LMFII will invest in litigation-related assets offered on the LexShares platform. LMFII opens on the heels of the company’s 100th legal claim investment, making LexShares one of the most active litigation funding firms in the world.

The firm closed LexShares Marketplace Fund I in January 2018, which was fully subscribed for USD25 million. Prior to this public launch, LMFII received commitments in excess of USD30 million, which includes two cornerstone institutional investors. LMFII is now accepting commitments from both institutional and individual accredited investors at lexshares.com.

“Six years ago, we founded LexShares. Two years ago, we launched our first dedicated litigation finance fund. Today, underpinned by a proven track record and an increasingly strong pipeline of investment opportunities, we continue our mission of providing investors unparalleled access to high-quality investments in litigation finance--a traditionally hard-to-access asset class,” says Co-Founder and Chief Executive Officer, Jay Greenberg. “We are thankful for the support we have received from our community of investors who entrust us as stewards of their capital. Their confidence and enthusiasm have enabled us to establish this milestone Fund II.”

As of June 10, LexShares has invested in 103 case offerings. Of those, 43 investments have resolved, resulting in a 52 per cent median IRR net of fees and expenses. Over the past year, LexShares’ average investment per case offering was USD1,460,607, up from USD845,250 the year prior. Investments as of 1 January, 2019 represent 48 per cent of all capital deployed since the firm was founded in 2014. LexShares’ proprietary origination technology platform, the Diamond Mine, has sourced more than one million case investment opportunities since the company launched the software in 2016. As a result, LexShares’ in-house investment team has collectively underwritten over USD2.63 billion in funding opportunities – USD855 million in the past year alone.

“Demand for litigation funding has grown dramatically since we founded LexShares,” says Co-Founder and Chief Investment Officer, Max Volsky. “To date, we have had a great deal of success in servicing the commercial litigation finance middle market. LMFII positions us to invest in a greater number of commercial cases as well as offer portfolio funding and other novel financial products to our growing network of law firms.”