AxiaFunder, the UK-based crowdfunding litigation funder, has launched an automated Secondary Market operating as a Bulletin Board, offering investors secondary trading functionality.
This facility will provide sellers with the potential to reduce their minimum holding periods on investments which would otherwise typically take two to three years to reach an exit. It will also help sellers to manage liquidity and risk. Buyers will be able to access cases that are already funded – enabling increased portfolio diversification.
For claimants, AxiaFunder expects that the Secondary Market will in time become more liquid, which should tend to increase the availability of litigation funding while also lowering its cost.
AxiaFunder plans to carefully supervise the new Secondary Market, noting the importance of ensuring equal disclosure of information to buyers and sellers. It will not allow investors to trade case investments close to key case events such as, for example, a mediation process or court hearing. Confidentiality of case information will be protected through the execution of non-disclosure agreements by all prospective investors.