LexShares, a leader in commercial litigation finance, today announced the launch of LexShares Marketplace Fund II (LMFII). With a $100 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 $25 million. Prior to this public launch, LMFII received commitments in excess of $30 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,” said 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% median IRR net of fees and expenses. Over the past year, LexShares’ average investment per case offering was $1,460,607, up from $845,250 the year prior. Investments as of January 1, 2019 represent 48% 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 $2.63 billion in funding opportunities–$855 million in the past year alone.
“Demand for litigation funding has grown dramatically since we founded LexShares,” explained 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.”
Accredited investors are now able to access the LexShares Marketplace Fund II investor presentation, and invest directly on LexShares’ website.
About LexShares
LexShares is a leading litigation finance firm, with an innovative approach to originating and financing high-value commercial legal claims. LexShares funds litigation-related matters, primarily originated by its proprietary Diamond Mine software, through both its online marketplace and dedicated litigation finance fund. Founded in 2014, the company is privately owned with principal offices in Boston and New York City. For more information, visit lexshares.com.
About LexShares Marketplace Fund II
LexShares Marketplace Fund II (LMFII) is the company’s second discretionary fund dedicated to providing access to a portfolio of litigation-related assets. LMFII has retained Seward & Kissel LLP as its legal counsel, BDO USA, LLP for tax and auditing services, and SS&C Technologies Inc. as its fund administrator.
Additionally, LMFII has secured a principal protection insurance policy from AmTrust International Insurance, Ltd., an industry-leading global insurance provider. Investors can elect to cover all or a portion of their commitment to LMFII with this policy. LMFII is now open for investment directly on lexshares.com.
This release may contain “forward looking statements” which are not guaranteed. Investment opportunities posted on LexShares are offered by WealthForge Securities, LLC, a registered broker-dealer and member FINRA / SIPC. LexShares and WealthForge are separate entities. This release does not constitute an offer to sell or the solicitation of any offer to buy interests in the LexShares Marketplace Fund II (LMFII), which may only be made at the time a qualified subscriber receives the confidential investor packet (the “Investor Packet”) which includes the confidential private placement memorandum of LMFII, describing the offering. The interests in LMFII shall not be offered or sold in any jurisdiction in which such an offer or sale would be unlawful until the requirements of the laws of such jurisdiction have been satisfied. In the case of any inconsistency between the descriptions or terms in this release and the Investor Packet, the Investor Packet shall control. Each prospective investor should consult its own attorney, business adviser and tax adviser as to legal, business, tax and related matters concerning the information contained herein. Investment opportunities offered by LexShares are “private placements” of securities that are not publicly traded, are not able to be voluntarily redeemed or sold, and are intended for investors who do not need a liquid investment. Investors must be able to afford the loss of their entire investment without a change to their lifestyle. Historical performance information is not indicative of future performance or investment returns, and prospective investors should not view the performance information as an indicator of the future performance of LMFII. Investments in legal claims are speculative, carry a high degree of risk and may result in loss of entire investment. Returns are based on principal’s internal reporting for offerings through the LexShares platform reaching resolution as of June 10, 2020. Results reported reflect the simple median annualized rate of return per the xirr function, net of fees and expenses. The insurance protection policy is subject to terms and conditions which should be reviewed in full in the Investor Packet and considered before a decision is made to proceed with insurance protection.
