In General
Third party financing or third party funding may be defined as
the financing of arbitration costs of one of the parties by a third
person who is not related to the claim[1]. It may also
be defined as "any person or entity that is contributing
funds, or other material support, to the prosecution or defence of
the case and that has a direct economic interest in, or a duty to
indemnify a party for, the award to be rendered in the
arbitration."[2]
The methods by which third party funders agree to finance
litigation costs of a party vary[3]: The consideration
of the third party funder may be the gain of an agreed upon
percentage of an awarded proceed, a fixed success fee, or a
mechanism combining the two. Funding may result in the issuance of
equity or debt instruments, the transfer of a claim to the funder,
or the funder gaining control over the party, and, consequently, of
the dispute strategy and management. The clients of funders vary:
they may be the
