A new crowdfunding platform has launched in the UK that enables investors to fund litigation cases
Article written by Kathryn Gaw published in P2P Finance News on the 19th January 2019.
Kathryn Gaw of P2P finance reported on the launch of AxiaFunder:
- AxiaFunder, a new litigation crowdfunding platform in the UK has already funded its first case
- How litigation funding works
- Interview with Cormac Leech CEO and Michael Lent head of case origination and assessment
Kathryn Gaw reported on the way litigation finance works. Litigation finance can offer funding to claimants that might otherwise be unable to afford the costs of their legal disputes. In return, investors who fund the cases are given a share of the damages if the case wins. These types of loans are usually financed by institutional investors, private equity houses and hedge funds. Litigation funding companies, like AxiaFunder are allowing the sector to open up to individual investors.
Cormac Leech, AxiaFunders chief executive has acknowledge the concerns of investors about the seemingly exceptionally high returns on the case offered. He explained that there is education to be done about the sector of litigation finance.
Kathryn Gaw reports on the rigorous approach that AxiaFunder takes in assessing what potential offers are presented to investors. Only about 5-10% of the cases that are brought to AxiaFunder will be approved for investment. Investors who are hoping to invest in these cases will first be required to sign a non-disclosure agreement and then be given access to the legal correspondence relating to the case which will allow them to have a good level of transparency into their investment.
To read the full article, visit https://www.p2pfinancenews.co.uk/2019/01/17/new-p2p-platform-launches-to-fund-litigation-cases.
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