Third-Party Funding Pricing and Deal Structures

Abstract

Third-party funding is increasingly used in relation to international arbitration claims. However, whilst the basic concept and framework are well known to most lawyers, many are less familiar with the practicalities, industry conventions, and broader alternative financing and risk management options available.This article discusses how arbitration finance deals are structured and priced in practice, how this has evolved in recent years with the growth of the market and the emergence of new funding structures, and the increasing interplay between law firm fee structures and external finance.