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LexShares Raises $100 Million for Litigation Funding ‘Certainty’

Jan. 25, 2022, 1:30 PM

LexShares litigation funding company closed a more than $100 million fund that it said gives “certainty” for quickly getting capital to law firms and their clients.

Titan Advisors, an alternative investor in Stamford, Conn. with more than $4 billion in assets, was a lead contributor for the fund that targets “mid-sized” deals of $2 million to $50 million in claims, LexShares Chief Executive Officer Cayse Llorens said. He didn’t disclose the amount of Titan’s support.

“We have certainty of funding,” Llorens said in an interview. “We are able to provide more and more capital to mid-market and boutique law firms that might not be getting the attention that some of the upmarket participants do.”

Investors have poured money into companies that invest in litigation in recent years, with U.S. assets reaching more than $11 billion, according to Westfleet Advisors, a litigation funding advisory firm.

Financiers pay for legal actions at law firms with the goal of making a profit if their parties prevail. Boston-based LexShares uses a technology platform dubbed “Diamond Mine” that it said sweeps court filings to unearth funding opportunities.

“We believe in LexShares’ mission to use technology to source high-quality investment opportunities,” Rob Wilson, Titan Advisors’ director of insurance dedicated funds, said in a statement.

LexShares began raising money in mid-2020, saying then it had brought in $30 million of the nine-figure fund it sought. LexShares at the time said it had previously deployed nearly $72 million into more than 100 cases since 2014.

That 2020 announcement came shortly after a round of major litigation funds had closed, including Parabellum Capital, which raised more than $450 million, and GLS Capital, which hauled in $345 million.

Longford Capital closed a fund with more than $675 million in September.

LexShares received a majority investment in 2021 from Brockhurst Capital Partners, a Chicago-based private equity firm founded by Llorens, who became LexShares’ CEO last year.

A venture capital investor with a computer engineering background, Llorens is a rarity in that he lacks a Juris Doctor degree in the largely lawyer-led litigation funding industry.

To contact the reporter on this story: Roy Strom in Chicago at rstrom@bloomberglaw.com

To contact the editors responsible for this story: Chris Opfer at copfer@bloomberglaw.com; John Hughes at jhughes@bloombergindustry.com