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Don’t invest unless you’re prepared to lose all the money you invest. This is a high - risk investment and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more
Don’t invest unless you’re prepared to lose all the money you invest. This is a high - risk investment and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more
Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be very complex and high risk.
What are the key risks?
You could lose all the money you invest
If the business offering this investment fails, there is a high risk that you will lose all your money. Businesses like this often fail as they usually use risky investment strategies.
Losses can exceed the invested amount. In some remote circumstances, you may lose more than the amount invested due to adverse cost risk. After The Event (ATE) insurance will be put in place for cases that carry adverse cost risk, however it is not guaranteed that the insurance will pay out.
Advertised rates of return aren’t guaranteed. This is not a savings account. If the issuer doesn’t pay you back as agreed, you could earn less money than expected or nothing at all. A higher advertised rate of return means a higher risk of losing your money. If it looks too good to be true, it probably is.
These investments are very occasionally held in an Innovative Finance ISA (IFISA). While any potential gains from your investment will be tax free, you can still lose all your money. An IFISA does not reduce the risk of the investment or protect you from losses.
You are unlikely to be protected if something goes wrong
Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker here.
Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated firm, FOS may be able to consider it. Learn more about FOS protection here.
You are unlikely to get your money back quickly
This type of business could face cash-flow problems that delay payments to investors. It could also fail altogether and be unable to repay any of the money owed to you.
You are unlikely to be able to cash in your investment early by selling your investment. In the rare circumstances where it is possible to sell your investment in a ‘secondary market’, you may not find a buyer at the price you are willing to sell.
You may have to pay exit fees or additional charges to take any money out of your investment early.
This is a complex investment
This kind of investment has a complex structure based on other risky investments, which makes it difficult for the investor to know where their money is going.
This makes it difficult to predict how risky the investment is, but it will most likely be high.
You may wish to get financial advice before deciding to invest.
Don’t put all your eggs in one basket
Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.
A good rule of thumb is not to invest more than 10% of your money in high-risk investments.
Last updated on Monday, 28th October 2024. Overview To date, AxiaFunder raised £16,168,440 for a range of commercial and portfolio investments.
Figure 1:Cumulative capital raised via AxiaFunder platform by offer type
PORTFOLIO CLAIMS - HOUSING DISREPAIR
AxiaFunder has been funding UK Housing Disrepair (HDR) Litigation Claims since May 2022 - raising £10.8 million to date across 31 separate limited partnership Special Purpose Vehicles (SPVs), funding 3,919 claims.
Figure 2: Cumulative HDR Portfolio Funding by Law Firm
To date, 1192 claims were funded via 8 SPVs. The net investor returns for the first 2 SPVs are shown in Figures 5-6 below. The dots show the investor net gains (Figure 5) and IRRs (Figure 6) by tranche and time of the tranche payment. For example, looking at SPV1 funded in August 2023, the first 10%-tranche had a net investor gain of 25.0% (IRR of 27.4%) in July 2024, 11 months after the Offer launch, followed by return of 31.8% (29.4%) in September 2024 from the second 10%-tranche.In total, 3 10%-tranches have been repaid to date, together comprising 38 resolved claims (out of 260 claims funded by these 2 SPVs). The average net gain and IRR to investors across the settled claims is 24.7% and 25.3%, respectively. Contractually, SPV1 is entitled to receive a share of the law firm’s revenue on each claim regardless of the claim resolution timing. The other SPVs funding this law firm (including SPV2) accrue the return daily.
Figure 5: Law Firm 3 investor net return by tranche
Figure 6: Law firm 3 investor IRR by tranche
Law Firm 4 To date, 890 claims were funded by 6 SPVs. There have been no repayments to investors yet.
PORTFOLIO CLAIMS - DIESEL EMISSION CLAIMS
Additionally, AxiaFunder raised £1,860,000 for diesel emission claims against different car manufacturers via 4 SPVs. There have been no repayments to investors yet. If all the diesel claims settled today, investors would have a net gain of 145%.
COMMERCIAL CLAIMS
17 individual commercial claims have been fully funded via our platform, of which nine have successfully resolved and three have resolved negatively with each corresponding offer* generating returns for investors of between -100% and 175% return* over periods of time ranging between 5-55 months. Meanwhile, the other 5 claims remain ongoing. Total amount of capital raised for commercial claims is £3,478,440*** with an average IRR**** on the resolved claims equivalent to 6%. The average IRR on the standard resolved offers is 35%, and the average IRR on the high risk***** offers is -97%. Some claims (see Claim ID) have been funded via multiple offers. We calculate the return and IRRs for each Offer separately.
Figure 7: Summary overview of AxiaFunder commercial claim investments to date
Disclaimer: Past performance is not a guarantee of future results and projected returns are not guaranteed to be realised. You should not invest unless you are willing to lose all the money you invest. This is a high-risk investment, and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more.
To view current investment opportunities (if any), visit our investments page.
* 3 claims were funded with one SPV via Offer ID 2510; 3 claims were funded with one SPV via Offer ID 3536; 5 resolved claims were funded in stages using separate SPVs. ** Net investor return accrued to date. For resolved claims this is the actual net gain after fees received by investors. For ongoing claims, this is the net return investors would get after all fees if there was an immediate claim win. *** Total primary trading volume. **** Internal Rate of Return (IRR); Average refers to the arithmetic mean. ***** An offer categorised as High-Risk has a higher probability of loss (and higher potential return). ****** Win means claim resolved with a positive financial return for investors. Lose means claim resolved with a negative financial return for investors.
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