What do third party funders consider?
Third-party funders will consider:
Does the claim involve monetary damages? If not, funders are unlikely to be involved.
The amount of the claim: funders are unlikely to be involved in cases that do not involve substantial amounts of settlement; some may have a starting threshold, given the risk involved.
What is the likelihood of success? Funders will invariably conduct their own independent assessment of whether the claim is likely to succeed rather than rely solely on the party’s assessment.
The length of time it will take to resolve the case.
Where is the seat of arbitration and what is its approach to third party funding?
Who are the parties involved and what is their profile? For instance, if the opposing party is a state, how likely is it that the award will be enforceable (sovereign immunity concerns) or, where it involves a commercial arbitration, does the other party hold assets in a state where enforcement will be problematic or challenging?
The legal teams involved and the composition of the arbitral tribunal.
Is it a viable project for the funder?
International Arbitration: Process and Procedure
International Arbitration: Process and Procedure
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