AxiaFunder sees cases funded faster
AxiaFunder has seen its cases get funded increasingly quickly, with its latest opportunity becoming fully funded in just 19 hours.
The litigation crowdfunding platform launched an investment offer last week, to raise up to £275,000 to fund a portfolio of housing disrepair claims litigated by a law firm.
The target amount was raised by 59 investors.
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AxiaFunder had previously raised £275,000 for the same law firm for another portfolio of housing disrepair claims, from 85 investors.
Cormac Leech, chief executive at AxiaFunder, said that the pace at which cases were being funded was consecutively increasing. The previous case was funded in 24 hours and the case before that was funded in two days.
Leech believed this was probably due to increased awareness of AxiaFunder and growing demand for yield in a challenging macro environment, as well as more data on how previously-funded housing disrepair cases were performing.
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The heightened demand from investors comes despite AxiaFunder reducing its target returns.
“We have reduced the forecasted net IRR slightly due to more conservative assumptions on the average case performance but still targeting around 20 per cent per annum net of fees and losses,” Leech said.
This is down from expected returns of 21 to 23 per cent per annum on the previous case.
AxiaFunder said that in contrast to the previous housing disrepair claims, it anticipates the capital from the latest raise will be deployed gradually in three to four equal tranches over the coming weeks. It expects that 80 to 85 per cent of the claims will be successful, with over 95 per cent likely to settle pre-trial.
In January this year, AxiaFunder became directly authorised by the Financial Conduct Authority after a 12-month process.