Third-Party Financing in Investment Arbitration

Document Type

Book Chapter

Publication Date



Christina L. Beharry




This Chapter identifies and explains the effect of third-party funding on the fi-
nancial aspects of international investment treaty cases. Indeed, the increased
visibility of third-party funding coupled with the increasingly novel and com-
plex ways that these arrangements are carried out make it a fascinating devel-
opment in the world of disputes.

Third-party funding is particularly relevant in the context of damages
because, ultimately, the magnitude of damages of any claim is one of the de-
termining factors influencing whether a claim will be financed and, if so, at
what level.

This Chapter explores the different types of third-party funding, how it is
obtained, the current state of regulation, the scope of disclosure obligations,
the treatment of third-party funding by international investment tribunals, the
impact of funding on security for costs applications and quantum calculations,
and the influence of third-party funding on settlements.

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