LexShares Case #281 Resolved

Summary

  • 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 and a 1740% IRR.
Key Events

Backstory

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.

Funding

In July 2017, LexShares opened a new investment opportunity. 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.

Distribution

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 as a short-term capital gain. Net profit was $59,295 over 73 days, for a 1.79x gross multiple of invested capital (MOIC). I felt more confident about this asset class and the LexShares platform after this quick settlement.