Financing commercial arbitration
The idea behind arbitration finance is simple: Businesses and law firms use money from a third-party finance provider to pay for investor-state and international commercial arbitration.
The idea behind arbitration finance is simple: Businesses and law firms use money from a third-party finance provider to pay for investor-state and international commercial arbitration.
The idea behind arbitration finance is simple: Businesses and law firms use money from a third-party finance provider to pay for investor-state and international commercial arbitration. Funding comes in many forms (fees and expenses, monetization or advance of entitlement, single matter or portfolio) and does not impact control, which remains with the claimant. Capital typically is non-recourse, not debt, meaning the investment and return are paid only on a successful resolution.
Litigation boutiques and AmLaw 100 law firms use arbitration finance to:
Our team is ranked Band 1 for international arbitration by Chambers and Partners
We have financed more than 50 high-value arbitration matters around the world
We cover finance premiums on insurance policies against the risk of an award not being enforced
We insure against adverse costs risk
Arbitrations are time-consuming endeavors, with durations averaging 2.5 years for an ICC arbitration and 4.5 years for an ICSID arbitration
72 firms reported funded arbitrations in the 2023 GAR 100 survey—a 33% increase since 2019
In the 2023 GAR 100 survey, law firms reported 208 funded arbitrations—the second highest number reported by law firms in GAR survey history, and the second time that the number of funded cases has surpassed 200
Perspective from Jeffery Commission
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