LexShares

LexShares operates as a specialized finance company, providing capital for high-value commercial legal claims. The firm was established in 2014 by Jay Greenberg and Max Volsky, officially launching an online marketplace for litigation investing. Greenberg's background is in technology investment banking with Deutsche Bank, where he advised on billions in mergers, acquisitions, and financing. Volsky is a litigator and an early pioneer in the litigation finance industry, having authored a book on the subject.

The company's business model centers on connecting plaintiffs and law firms with accredited investors who can fund their cases. This non-recourse funding helps litigants cover legal fees and operational expenses, with LexShares receiving a portion of the settlement or judgment if the case is successful. Revenue is generated from carried interest on the profits from successful case outcomes and, for its funds, management fees. The company serves a client base of plaintiffs, attorneys, and in-house legal departments involved in commercial disputes.

LexShares offers two primary ways to invest: directly into individual lawsuits via its online marketplace or into a diversified portfolio of legal claims through its managed funds, such as the LexShares Marketplace Fund II. The marketplace allows accredited investors to browse and select specific cases, with minimum investments typically starting at $2,500. For case origination, the firm utilizes a proprietary technology platform, named Diamond Mine, to scour court filings and identify potential investment leads. This technology, combined with an in-house underwriting team, enables the firm to vet thousands of requests for funding and select promising commercial cases, ranging from breach of contract to intellectual property disputes.

A significant milestone occurred in 2018 with the closing of its first fund, LexShares Marketplace Fund I, at $25 million. This was followed by the launch of LexShares Marketplace Fund II in 2020 with a target of $100 million, which it subsequently closed oversubscribed. In 2021, the company received a majority investment from Brockhurst Capital Partners, leading to Cayse Llorens joining as the new CEO.

Keywords: litigation finance, legal financing, alternative asset class, accredited investors, commercial lawsuits, non-recourse funding, legal claims investment, litigation funding platform, lawsuit funding, legal-tech, investment marketplace, Jay Greenberg, Max Volsky, case underwriting, dispute resolution finance, legal assets, portfolio funding, Diamond Mine technology, judgment enforcement, legal risk management