Turmoil But Growth In Third‑Party Arbitration Funding

This article is part of the "International Arbitration Perspectives" series. 

After more than a decade of expansion, from an almost unknown asset class to a US$20 billion industry, third-party funding experienced a turbulent 2025. Key names in the sector are re-evaluating their business models and going through increased consolidation.¹ A major funder is also the target of a civil fraud suit in the Jersey courts, over allegations that it conspired with arbitration lawyers to procure a US$15 billion award against Malaysia.²

Despite these challenges, international arbitration claims have continued to attract third-party funding. Funded claims have notably been brought against Kazakhstan under the Energy Charter Treaty (ECT),³ and against Morocco under the UK-Morocco BIT.⁴ Data from ICSID show that 7% of newly registered cases in 2025 involve a funder.⁵