SAN FRANCISCO, CA—Legalist (www.legalist.com), a technology-enabled litigation finance firm, has announced the first and only close of Legalist Fund II, LP (“Fund II”), a $100 million fund.
Founded in 2016 by two Harvard drop-outs and advised by former US Court of Appeals judge Richard A. Posner, Legalist invests in commercial litigation by using technology that scrapes state and federal court records in order to source and underwrite investments. Unlike traditional litigation funders, Legalist exclusively focuses on mid-market cases that require less than $1 million in funding. Legalist raised $10.25 million for Fund I in 2017 and funded thirty-eight cases.
“Technology allows Legalist to fund ‘David versus Goliath’ cases brought by small businesses,” said Eva Shang, Legalist’s co-founder and CEO. “By identifying cases that are likely to be successful, our algorithms allow us to deliver consistent performance to our clients and investors.”
Legalist received over $1 billion in investment applications in 2018, and continues to experience high demand from plaintiffs. Investors in Fund II include institutional investors such as insurance companies, endowments, and fund-of-funds. Fund II will be deployed into attorney’s fees and costs in over one hundred meritorious litigations.
Based in San Francisco, Legalist has a staff of eleven, including two underwriting attorneys and four engineers.
Legalist is an algorithmic litigation finance firm that helps small businesses pay for their lawsuits. Headquartered in San Francisco, Legalist uses machine learning and AI technology to source and underwrite litigation investments. The company manages assets over $110 million and has been featured in the New Yorker, the Wall Street Journal, Boston Globe, and more.