Litigation finance remains a standout asset class, uncorrelated with mainstream investments such as stocks, bonds, or real estate. The individual nature of each case offers distinct outcomes and returns — a characteristic that fortifies the argument for litigation finance as an essential diversifier in a well-balanced portfolio, serving to diminish risk, smooth out volatility, and provide a buffer during sharp market downturns.
The litigation finance arena has undergone considerable growth since LMFI and LMF II first began. We've transitioned from the binary win-or-lose stakes of single commercial cases to more robust portfolio investments, which present a broader range of less volatile returns and maintain competitive risk-adjusted profiles. The advent of law firms as Alternative Business Structures introduces new channels for investment, particularly in mass torts and select personal injury claims, allowing for more tailored legal asset exposure and accelerated cash flows from shorter-duration cases. Moreover, the secondary market for litigation finance and debt finance assets is expanding.
We're currently blueprinting our third fund, targeting an early 2024 launch, with the intention to incorporate many of these progressive elements into Fund III's structure. For more detailed information about our forthcoming fund, please contact our Investor Support Group.
We also acknowledge the US House Committee on Oversight and Accountability's recent hearing on the regulation of Third-Party litigation funding, held on September 13, 2023. While tinged with political debate, the hearing also spotlighted the undeniable benefits to consumers — notably, more equitable access to justice, a cornerstone of third-party funding's value. LexShares has now exceeded 160 litigation finance investments since beginning in 2014, and our observations confirm that such funding consistently provides a pathway to justice for plaintiffs with legitimate claims.
The Latest at LexShares
We encourage all LMFII investors to utilize the enhanced LexShares online platform to track developments on all underlying cases in the Fund. We are updating the case narratives more frequently and this reporting tool can be accessed through your investor dashboard, navigating to the fund updates ribbon.
We extend our heartfelt appreciation to our departing team members, Richard Chapman and Matthew Oxman, who have made valuable contributions to our business development and underwriting teams at LexShares. We wish them every success in their future endeavors.
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.