LexShares Review
Accredited investors seeking high-return, illiquid investments with substantial risk tolerance who want portfolio diversification through litigation finance and can accept 15+ month lockup periods with binary profit-or-loss outcomes.
Min. Investment
$5K
Liquidity
Illiquid
Accreditation
Accredited Only
Asset Class
Litigation Finance
Pros
- +High historical returns: 40-52% median IRR net of fees with strong track record since 2014
- +Low minimum investment entry point: $5,000 for individual cases (some as low as $2,500)
- +Non-recourse structure: Investors only owe nothing if lawsuit loses; limited downside
- +Rapid capital turnaround: 15-month median duration from investment to case resolution
- +Strong win rate: 70% success rate on resolved investments
- +Diversification across multiple cases: Portfolio approach available through LMFII fund
Cons
- −Accreditation requirement limits access to high-net-worth investors only
- −Highly illiquid: Capital locked until case resolution (typically 15 months but can vary)
- −Binary outcome risk: Returns are either very strong (50%+) or total loss - no middle ground
- −SEC exemption status means limited disclosure requirements and investor protections
- −Performance verification challenges: Data as of 2020; more recent comprehensive metrics unavailable
- −Currently in harvest mode (as of 2024): Not actively seeking new investments, focusing on existing portfolio
LexShares Review 2026: A High-Return Litigation Finance Pioneer That Is No Longer Accepting New Investors
Last verified: 2026-04-12 | Overall rating: 3.0/5
The 30-Second Verdict
LexShares posted impressive historical numbers -- 40-52% median IRR, 70% win rate, 15-month median resolution -- making it one of the highest-returning alternative investment platforms ever reviewed. But as of August 2024, LexShares entered harvest mode and is no longer accepting new investments. The platform is managing its existing portfolio of litigation cases to completion. If you're looking to invest in litigation finance today, LexShares is not an option. This review documents the platform's track record for reference and existing investors.
What Is LexShares and How Does It Work?
LexShares is a litigation finance platform founded in 2014 by Jay Greenberg (CEO) and Max Volsky (CIO), headquartered in New York with offices in Boston. The platform facilitated non-recourse investments in commercial litigation cases -- investors funded lawsuits in exchange for a share of proceeds if the case won. Offerings were structured as private securities under Regulation D Rule 506(c), sold through WealthForge Securities (a FINRA/SIPC registered broker-dealer). Individual cases had minimums as low as $2,500-$5,000, while the LexShares Marketplace Fund II (LMFII) required $250,000. As of August 2024, the company entered harvest mode, focusing on resolving existing cases rather than accepting new investments.
Who Is LexShares Best For?
LexShares is no longer accepting new investors. For those still interested in litigation finance, Burford Capital (publicly traded) and Legalist offer alternatives, though with different structures and minimums. Existing LexShares investors should monitor their portfolio cases through resolution.
Fees
- Management fee: 2.5% annual (LMFII)
- Performance fee: 25% carried interest
- Other: Administration fee, prepaid operating fee, broker fee, bridge loan financing fees
On a $5,000 individual case investment, the fee structure varied by offering. On the LMFII fund, a $250,000 investment would incur $6,250 in annual management fees plus 25% carried interest on profits.
Minimum Investment
$5,000 for individual cases (some as low as $2,500). $250,000 for LexShares Marketplace Fund II. Platform is no longer accepting new investments.
Accreditation Requirements
Yes. All offerings required accredited investor status, verified through Regulation D Rule 506(c) procedures.
Liquidity -- How Do You Get Your Money Out?
Illiquid. Capital was locked until case resolution, with a 15-month median duration. There was no secondary market. Cases could resolve faster or take significantly longer than the median. With the platform in harvest mode, existing investors must wait for their portfolio cases to reach resolution.
Historical Returns
LexShares reported 52% median IRR (net of fees) on 43 resolved cases as of June 2020, with more recent figures showing 47% median IRR and 40% IRR since inception. The platform achieved a 1.4X return on capital since inception with a 70% win rate. The median case resolution duration was 15 months. The non-recourse structure meant investors owed nothing on losing cases but lost their invested capital.
Most recent comprehensive performance data is from 2020-2022. Current performance on remaining harvest-mode cases has not been publicly disclosed.
Past performance is not indicative of future results. Litigation outcomes are inherently unpredictable. Returns had binary outcomes -- either strong gains or total loss.
Regulatory and Legal Structure
Offerings structured under SEC Regulation D Rule 506(c) exemption, which limits participation to verified accredited investors. Securities sold through WealthForge Securities, a FINRA/SIPC registered broker-dealer. The 506(c) exemption means limited disclosure requirements compared to registered securities. The platform website and FAQ pages remain operational as of the verification date.
Pros
- Exceptional historical returns: 40-52% median IRR net of fees since 2014
- Non-recourse structure limited downside to invested capital only
- 70% win rate on resolved cases demonstrated strong case selection
- Fast 15-month median resolution provided relatively quick capital turnaround
- Pioneer in making litigation finance accessible to individual accredited investors
- Transparent public track record with detailed performance metrics
Cons
- No longer accepting new investments -- entered harvest mode in August 2024
- Binary outcome risk: investments either generated strong returns or total loss, no middle ground
- 25% carried interest significantly reduced net returns on winning cases
- Performance data mostly from 2020 or earlier -- recent comprehensive metrics unavailable
- Accredited investor requirement restricted access to high-net-worth individuals only
- Litigation outcomes are inherently unpredictable regardless of historical win rates
The Bottom Line
LexShares built one of the most compelling track records in alternative investing. A 40-52% median IRR with a 70% win rate across resolved cases was extraordinary, and the non-recourse structure that limited downside to invested capital was a genuine innovation in making litigation finance accessible to individual investors.
None of that matters for new investors today. LexShares entered harvest mode in August 2024 and is no longer accepting new investments. The platform is focused on managing existing cases through resolution. The website remains operational, but there are no new offerings to invest in.
For existing LexShares investors, the key question is how remaining cases in the portfolio resolve. The historical 70% win rate and 15-month median resolution suggest most cases should reach conclusion, but each case carries binary risk. For anyone looking to enter litigation finance, you'll need to look elsewhere -- Burford Capital offers public market exposure to litigation finance, while Legalist and other platforms serve institutional and accredited investors.
ModernAlts may receive compensation if you open an account with platforms reviewed on this site. This does not influence our editorial ratings or analysis. Alternative investments involve risk, including possible loss of principal. Past performance is not indicative of future results. Nothing on this site constitutes investment, legal, or tax advice.
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Disclaimer: ModernAlts is an independent research platform. We may receive compensation from platforms we review. Nothing on this site constitutes investment, legal, or tax advice. Alternative investments involve risk including possible loss of principal. Past performance is not indicative of future results.