Private Capital And Arbitration – A Natural Fit?

As private capital investments expand globally in volume and complexity toward a projected USD32 trillion market by 2030, alternative asset managers are increasingly turning to arbitration to manage the resulting disputes. In this article, we examine recent dispute trends, explore how arbitration aligns with the sector’s distinctive needs, and offer practical guidance to help participants ensure they are “dispute ready.”

The private capital boom and the shifting dispute landscape

It is well known that private capital has experienced remarkable growth over the past decade. A diverse range of market participants, including private equity, sovereign wealth, infrastructure managers, and dedicated family offices, are deploying capital across an ever-wider array of geographies, asset classes, and deal structures. While this expansion unlocks opportunity, it also introduces heightened risk, in line with the growing competition for assets faced by substantial levels of unallocated capital.