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Post by overthehill on Nov 29, 2023 15:49:56 GMT
Barring pure coincidence it's obvious that Axiafunder follow this forum. They've read Ace 's posts and thought this is actually a great marketing opportunity so we'll create an email using easily assembled stats. I can attach it if anyone is interested Funny how you never see Ace and AxiaFunder in the same room. Just saying.
The FCA and FO haven't checked his phone calls, texts or emails yet for wrongdoing but nothing to worry about there...
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Post by frank121 on Nov 29, 2023 15:55:32 GMT
What is the current thinking that you may be exposed to more than you invested via Axia Funder? I remember that this was raised initially as an unlikely but possible risk of getting involved in litigation funding (and the spectre of the UB case raises its ugly head here). As I understand it, that risk still exists, even for the portfolio loans. There's a fairly detailed description of the unlikely series of events that would need to happen for that to occur in each offer document, which I'd recommend reading. I recall reading somewhere that in the unlikely case that a judge did award costs against us lenders personally, that it would highly likely (but not absolutely guaranteed) be limited to the amount we funded plus the same amount again. The current portfolio loan is looking to fund 150 individual cases. So, for each £1k that I lend, I will only be funding £6.67 per case (assuming the loan fills). There might be other funds in the partnership account that could also be purloined, such as funds that hadn't been deployed yet, or repayments that hadn't been distributed to lenders yet... So, that could lead to an effective liability of more than twice the £6.67 per £1k lent. Also, only around £2k is given to the law firm per case to cover: sourcing the case, dealing with it, and their costs to take it to trial if necessary. It seems to me that the cost of the defense is unlikely to be massive. Of the 255 cases settled so far, none have needed to go to trial, so no risk arose on any of those. And that's just the first of many stages that would need to go wrong before there was an award against the partners personally. All of that is just the musings of a fellow investor with absolutely no legal training and should not be considered as advice. I've found AxiaFunder to be very approachable. I'd recommend contacting them if you'd like to discuss the topic with the experts. The way I look at it is, investing in multiple portfolio loans is already generating healthy annualised returns of around 20%. In the unlikely event that I do get stung by adverse costs I should be well covered by existing profits. Thanks for your sharing your thoughts Ace. I read that the AF view is that it would need a specific chain of unlikely events to occur in order for costs to be awarded to the funding partnership; one of which is that the After the Event (ATE) also does not pay out. So the chance is supposedly very small and as you have said the exposure in the HDR loans is also limited. (not least the amount of the claims but also how many actually go to court and then lose - which are all expected to be a very small percentage of all HDR claims) I would imagine the risk in single cases is substantially higher based on this. (and in the grand scheme of things is still probably low) By the way; one further question to you? Do you see regular progress updates of your HDR claims, either on the portal or by emai? I read that for single cases you have access to the law firms progress files but not sure if the same happens with HDR claims? I am only 1 month in so not expecting anything yet but curious if I will get see some actual details of case progression in time. 
Cheers, Frank
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Post by overthehill on Nov 29, 2023 16:05:42 GMT
Funny how you never see Ace and AxiaFunder in the same room. Just saying. 🤔 As you can see from my signature, I do have an equity investment in AF (and many other P2P firms), and I'm obviously a very keen investor on their platform, but there's no other connection. My opinions given are just that, so they could be wrong. "I'm an equity investor in AxiaFunder and a minor equity investor in Brickowner, Crowdstacker, Proplend, ABLrate, CrowdProperty, Assetz Capital, Elfin Market, Qardus, Loanpad, Shojin & CapitalRise (and regrettably Fund Ourselves). All info and opinions stated are in a personal capacity. This time next year I'll be a miwionaire Rodders!" Can't find anything about Crowdstacker in the forum, does anyone want to offer some feedback ?
Isn't it about time Ablrate had a regrettable qualifier ?
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firedog
Member of DD Central
Posts: 367
Likes: 462
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Post by firedog on Nov 29, 2023 16:06:30 GMT
frank - Ace is probably in more cases than me, but generally there's a quarterly update on each HDR case - and a notification of payout email. |
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Post by Ace on Nov 29, 2023 16:12:48 GMT
As I understand it, that risk still exists, even for the portfolio loans. There's a fairly detailed description of the unlikely series of events that would need to happen for that to occur in each offer document, which I'd recommend reading. I recall reading somewhere that in the unlikely case that a judge did award costs against us lenders personally, that it would highly likely (but not absolutely guaranteed) be limited to the amount we funded plus the same amount again. The current portfolio loan is looking to fund 150 individual cases. So, for each £1k that I lend, I will only be funding £6.67 per case (assuming the loan fills). There might be other funds in the partnership account that could also be purloined, such as funds that hadn't been deployed yet, or repayments that hadn't been distributed to lenders yet... So, that could lead to an effective liability of more than twice the £6.67 per £1k lent. Also, only around £2k is given to the law firm per case to cover: sourcing the case, dealing with it, and their costs to take it to trial if necessary. It seems to me that the cost of the defense is unlikely to be massive. Of the 255 cases settled so far, none have needed to go to trial, so no risk arose on any of those. And that's just the first of many stages that would need to go wrong before there was an award against the partners personally. All of that is just the musings of a fellow investor with absolutely no legal training and should not be considered as advice. I've found AxiaFunder to be very approachable. I'd recommend contacting them if you'd like to discuss the topic with the experts. The way I look at it is, investing in multiple portfolio loans is already generating healthy annualised returns of around 20%. In the unlikely event that I do get stung by adverse costs I should be well covered by existing profits. Thanks for your sharing your thoughts Ace. I read that the AF view is that it would need a specific chain of unlikely events to occur in order for costs to be awarded to the funding partnership; one of which is that the After the Event (ATE) also does not pay out. So the chance is supposedly very small and as you have said the exposure in the HDR loans is also limited. (not least the amount of the claims but also how many actually go to court and then lose - which are all expected to be a very small percentage of all HDR claims) I would imagine the risk in single cases is substantially higher based on this. (and in the grand scheme of things is still probably low) By the way; one further question to you? Do you see regular progress updates of your HDR claims, either on the portal or by emai? I read that for single cases you have access to the law firms progress files but not sure if the same happens with HDR claims? I am only 1 month in so not expecting anything yet but curious if I will get see some actual details of case progression in time.
Cheers, Frank
Hi frank121, We get quarterly progress updates on all loans (portfolio and commercial). An email is received notifying us of an update on the platform. For HDR loans we also get more info each time a 10% tranche is repaid. These will be more often that quarterly once the number of claims settling speeds up (after about 9 months). I'm not sure what you are referring to by "access to the law firms progress files". I haven't seen anything I can relate to this.
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Post by Ace on Nov 29, 2023 16:27:32 GMT
🤔 As you can see from my signature, I do have an equity investment in AF (and many other P2P firms), and I'm obviously a very keen investor on their platform, but there's no other connection. My opinions given are just that, so they could be wrong. "I'm an equity investor in AxiaFunder and a minor equity investor in Brickowner, Crowdstacker, Proplend, ABLrate, CrowdProperty, Assetz Capital, Elfin Market, Qardus, Loanpad, Shojin & CapitalRise (and regrettably Fund Ourselves). All info and opinions stated are in a personal capacity. This time next year I'll be a miwionaire Rodders!" Can't find anything about Crowdstacker in the forum, does anyone want to offer some feedback ?
Isn't it about time Ablrate had a regrettable qualifier ? There are a few Crowdstacker threads in the general section of the forum. Just type Crowdstacker in the search box and they should appear. They recently pivoted to doing mostly second charge development loans, which are progressing OK for me. I was notified today about one of their older style loans going into Administration! Another, secured on pubs, has been in administration for a very long time without much progress so far (bad timing for pub loans). Yes, I definitely regret the ABLrate equity investment. The information provided on that makes the platform updates seem almost effusive.
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Post by frank121 on Nov 29, 2023 16:59:45 GMT
We get quarterly progress updates on all loans (portfolio and commercial). An email is received notifying us of an update on the platform. For HDR loans we also get more info each time a 10% tranche is repaid. These will be more often that quarterly once the number of claims settling speeds up (after about 9 months). I'm not sure what you are referring to by "access to the law firms progress files". I haven't seen anything I can relate to this.
Many Thanks Ace & Firedog; will look forward to the quarterly updates and 10% tranche reports. Ahh, I just had a look at where I read that. (to ensure I just didn’t dream about it!) I thought it was in the FAQ's but no it's in the offer document under "audits". However, I didn't recall what it said correctly. Reading it again it's actually only Axia Funder who have access to the law firms systems not the partnership/investors. This section appears in the two HDR law firms that I am funding, so assume it’s the same for all of them. (and maybe single cases too)
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Post by Ace on Nov 29, 2023 17:54:00 GMT
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firedog
Member of DD Central
Posts: 367
Likes: 462
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Post by firedog on Nov 29, 2023 18:22:45 GMT
That grey bar (SPV3) already needs updated with today's notice of payout (41.6%)
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Post by Ace on Nov 29, 2023 20:43:49 GMT
That grey bar (SPV3) already needs updated with today's notice of payout (41.6%) That brings the percentage of capital returned from that loan to 53%, and the total profit per £1k invested to £149.83. Assuming that the payment is received on Monday (4/12/23), it would take the annualised return that has been earned on the returned capital from that loan to an XIRR of 23.15%. It raises the overall XIRR for my HDR case investments to 21.36%.
Assuming an equal amount was invested in each of the 7 HDR cases that have received at least 1 tranche repayment so far, the XIRR is 21.18%. For each £1k equal investment (£7k across the 7 loans), £2,660 of capital and £574.97 profit (£3,234.97 total) would have been paid so far.
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Post by overthehill on Nov 30, 2023 9:24:43 GMT
I'd rather Axiafunder waited until the payment is in your account before sending out email notifications about payment.
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Post by Ace on Nov 30, 2023 9:35:59 GMT
I'd rather Axiafunder waited until the payment is in your account before sending out email notifications about payment. Fair enough. I prefer to know as soon as possible to help manage cashflow. I guess you can't please everyone.
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Post by Ace on Nov 30, 2023 11:33:25 GMT
The labeling error in the linked article, pointed out by frank121 above, has now been corrected.
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Post by overthehill on Dec 7, 2023 14:26:33 GMT
Shareholder Dispute (Case ID: 3784) has settled, report expected next week.
No news.
Maybe Axiafunder have come down with the circulating P2P pathogen which causes severe bloating of the bank account with interest, I hear the withdrawal symptoms can be severe.
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Post by Ace on Dec 7, 2023 14:35:49 GMT
Shareholder Dispute (Case ID: 3784) has settled, report expected next week.
No news.
Maybe Axiafunder have come down with the circulating P2P pathogen which causes severe bloating of the bank account with interest, I hear the withdrawal symptoms can be severe.
I received an email on 9th Nov explaining that there was a further delay as they needed to seek some specialist tax advice on the treatment of the capital gains, which they expected to take a couple of weeks.
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