Since Max Volsky and I co-founded LexShares seven years ago, commercial litigation finance has continued to grow by leaps and bounds. An influx of capital into our market, along with rising legal industry acceptance of third-party funding, has brought a wave of new players and a broad spectrum of investors into the asset class. On top of receiving steady attention from legal and investment media outlets, major publications such as the New York Times and Wall Street Journal have now covered litigation finance. What could once be called a cottage industry in the United States is now squarely part of the public discourse.
Compared to the growing roster of U.S. litigation finance firms, however, LexShares’ investment framework remains distinct. We were the first in our industry to implement a marketplace-style investment platform, which broadened awareness of and access to litigation finance for individual accredited investors. The overwhelming demand we experienced for our marketplace offerings eventually led us to launch LexShares Marketplace Fund I — fully subscribed for $25 million in early 2018 — and now LexShares Marketplace Fund II, with a target size of $100 million.
Our unique position as both a marketplace operator and fund manager ultimately caught the attention of Harvard Business School. Earlier this year, I had the privilege of speaking with Harvard professor Lauren H. Cohen about our evolution as a commercial litigation finance firm. Professor Cohen has since published a case study that summarizes the LexShares growth story and challenges readers with captivating questions about the future of our business model and industry.
“Litigation Finance 2.0: LexShares” explores our role as an innovator in the “frontier” asset class of litigation finance. We were honored to collaborate with HBS on this case, which highlights several exciting opportunities and challenges facing the litigation finance market today. If you are interested in exploring the subject further, we encourage you to read it for yourself.
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Related: An Inside Look at LexShares and Litigation Finance [Podcast Q&A]
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. 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. Private placements are speculative. Investments in legal claims are speculative, carry a high degree of risk, and may result in loss of entire investment.
