AxiaFunder

AxiaFunder offers investors litigation funding investment opportunities.

Why Consider Litigation Funding?

Litigation funding has been growing popularity due to its high return potential and non-correlation with financial markets.

With good execution, the annual returns from litigation funding adjusted for losses can be potentially higher than traditional asset classes. Furthermore, litigation funding is a non-correlated asset class. Unlike stocks or real estate, the returns on litigation investments are typically unaffected by broader economic or market trends. This makes it a valuable addition to a diversified portfolio, as it provides exposure to an asset class with performance that depends solely on legal outcomes rather than market fluctuations.

The Risks of Litigation Funding

Litigation funding is however inherently risky, complex, and illiquid. Claims may end up being lost at trial. Defendants may refuse to pay the amount due. The risk of having to pay the opponent’s damages should also be considered and insured against, to protect both the claimants and investors. In some very remote circumstances, investors can be liable for the legal costs of the defendants.

Mitigate Investment Risks

Litigation funders should employ a rigorous approach to selecting and managing claims.

Only claims with good prospects of success are funded. The defendant should have the financial resources to pay the anticipated damages, while the claim’s value must be high enough to ensure a return. Insurance is often in place to mitigate against adverse costs risk.

If funding a portfolio of claims with the same law firm, litigation funders can reduce risk by obtaining a security charge over the law firm’s assets . Ongoing monitoring and claim management can further reduce risks.

In the UK, AxiaFunder offers investment opportunities to the following categories of investors only: certified high net worth individuals, self-certified sophisticated investors and professional investors.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high – risk investment and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more.

These are normally based on the specifics of each case. However, AxiaFunder would typically receive 2 fees: i) an “Upfront Fee” at the time of investment generally equal to 7-10% of the total sum invested. For smaller issuance amounts, they may charge a higher percentage. They always disclose our fees in the Offer document; ii) if the case is successful, 20% of the net return generated by the Special Purpose Vehicle (SPV). Note that these fees are recovered by AxiaFunder from the SPV and are not payable directly by investors.