- My 7th investment into commercial litigation crowdfunding has reached finality.
- It has been 73 days from the time of a wire transfer to the distribution.
- The investment has generated a 1.79x MOIC.
I scheduled an automatic recurring withdrawal from a hedge fund on a monthly basis. My plan was to withdraw $100,000 every month and invest in the LexShares platform, $50,000 per case and 2 cases per month. Things did not go as planned. The platform appeared to be struggling with volume. My average cash balance increased as there were not enough cases to absorb. I was consistently falling behind.
In July 2017, LexShares posted a breach of fiduciary duty case. The type of litigation was not my favorite, but I went ahead and committed $75,000 to lower my cash balance. I had extra cash because I was able to put only $25,000 to the previous offering.
The case was settled out of court only a few weeks after funds had disbursed to the plaintiff. LexShares mailed the payment 3 weeks after the settlement. Since I have held for less than a year, it will be taxed at short-term capital gains rates. Net profit was $59,295 over 73 days, for a 1.79x multiple of invested capital (MOIC). I felt more confident about the platform after I had a glance at the investment cycle.