Litigation finance group lending

Water Cooler
#1

Hi there brahs. I have been reading about this alternative asset class that is interesting, albeit still a bit dodgy. For those who don’t know, “litigation finance” is when you invest money to finance lawsuits, and receive settlements as returns.

https://www.lexshares.com/

https://www.trialfunder.com/how-it-works

Anyway, apparently, you can invest via some peer-to-peer looking companies, LexShares and Trial Funder, the latter gives you this “too good to be true” return profile. They probably won one blockbuster settlement, and then made the company marketing from that.

I’m just putting this out there in case anyone has some thoughts on these speculative investments. And of course, if Nery thinks it’s a good idea, that’s preliminary filter and an immediate black ball for me.

Pros: Historical high returns (not indicative of future, etc.). Uncorrelated with stocks.

Cons: Dodgy investment companies, uncertain payment (months? years?), wide variability of outcomes

#2

i think its a terrible idea, and prolly worse than ur 2x leverage buy and hold strat. so you should do it!

#3

Sounds an awful lot like viatical settlements. :neutral_face:

#4

There was some scam a couple of years ago, where some rabbi and another guy would visit elderly sick clients on religious pretext, but somehow end up buying their viatical settlements and made a lot of money. Anyway, they were caught.

#5

Only in ’merica.

#6

Not even close. There are publicly traded companies in other countries that do this.

#7

UK in particular has the biggest public companies that do this, I believe. Some of these companies even do work in the US.

#8

I’d be skeptical. Seems like a type of lending that is at high risk of fraud. But I’d need to talk to some industry people to be educated on it

#9

There’s a listed company in Aus that does this, IMF Bentham.

https://www.imf.com.au/

https://www.asx.com.au/asx/share-price-research/company/IMF

#10

your product cause cancer group.i find it kind of funny when family ask for money for someone who is already old and practically dead for damages. lol reparations baby