By Aisling Finn on Tuesday 28 April 2020
The firm says it has been able to return 94 per cent of funds and has not lost a case yet.
AxiaFunder, the UK’s first for-profit litigation funding platform, has won its second case last week.
Following this recent win, AxiaFunder says it has now been able to return 94 per cent of disputed funds to investors.
Cormac Leech, CEO and founder of AxiaFunder, said: “We are pleased to announce our second case win, which has produced solid returns to our investors through an Innovative Finance ISA eligible bond which was 83% principal protected via insurance.”
“Despite market volatility in the wake of COVID-19, litigation funding offers retail and institutional investors an opportunity to diversify their investment portfolio.”
Looking ahead the next case for the platform is against an EU Member state for a breach of EU law and AxiaFunder says investors can expect returns of 5.5x if the case wins at trial.
Leech explains: “Unlike equities, litigation funding is uncorrelated to financial markets and the economy, continuing to generate healthy returns to investors while many other assets classes are underperforming in the current economic climate."
AxiaFunder says that it only invests in cases that have a favourable expected outcome for investors of at least 70 per cent.
Often its cases are settled before they go to trial meaning investors are typically paid before a claimant, further improving returns.
Despite the ongoing economic uncertainty, AxiaFunder's latest round of cases was fully funded less than 24 hours after the launch of its marketing campaign—a positive sign for the popularity of the platform.
Since its launch in November 2018, the platform has raised £775,000 of litigation funding for six commercial cases and recently closed an equity round of over £250,000 of working capital hosted by the crowdfunding platform Seedrs.