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ARTICLE · 30 OCTOBER 2026

Litigation Funding In English-seated Commercial Arbitration

Travers Smith LLP
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Third-party litigation funding has become an established feature of commercial arbitration in England & Wales, offering parties the ability to finance legal proceedings through independent funders. This article examines how litigation funding operates within English-seated arbitration, including disclosure requirements under major institutional rules, the potential for recovering funding costs from unsuccessful parties, and critical practical considerations for parties seeking to leverage this financing

United KingdomLitigation, Mediation & Arbitration
James Hulmes
James Hulmes
Stephanie Lee
Stephanie Lee
Andy Moody
Andy Moody
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Third-party litigation funding – whereby an independent funder pays some or all of a party's costs in connection with legal proceedings in exchange for a financial return should the case succeed – has become an established feature of commercial arbitration seated in England & Wales. 

In this article, we explore the use of litigation funding in English-seated commercial arbitration, including its interaction with institutional rules, potential pitfalls and practical guidance to ensure its effective use.

What is litigation funding?

Litigation funding is an arrangement whereby a third party pays a litigant's legal costs in exchange for a financial return should the case succeed. Typically, the claimant will be the funded party: if the case is lost, the funder will receive nothing and the funded party will owe nothing for the capital advanced; if the case is won, the funder will receive an uplift on its investment.

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