Litigation funding platform wins first case

AxiaFunder says the net investor gain was 43 per cent as the firm looks to ramp up its pipeline of cases.

AxiaFunder, a new alternative finance platform that helps investors access litigation funding, has seen its first case make a net return for investors of 43 per cent, according to an update from the firm.

Litigation funding has been hugely popular with hedge funds and available indirectly to investors via the recently troubled Burford Capital. AxiaFunder says it is opening the asset class to a new level for retail investors.

The firm was set up by Cormac Leech, formerly of Liberum and Victory Park Capital, in early 2019. 

It works by bringing those wishing to undertake a legal case but lack the cash to pay for it with investors who fund the legal costs and get a return based on the successful financial outcome of the case. 

In the event, the case is lost investors lose all of their money and in some instances, investors may lose more than their original stake,  up to double the amount invested.

This first case has a relatively modest £12k funding requirement.  Leech says its second case is ongoing with several more cases in the pipeline and the firm is currently advertising for a funding requirement of £40kinitially followed by an £810k follow on.