Daily Journal Corporation
Third-party funding, also known as litigation funding, is a financing method in which an entity that is not a party to a particular dispute funds another party’s legal fees or pays an order, award, or judgment rendered against that party, or both. Third-party funding is a growing phenomenon that is becoming more mainstream in both the litigation and the international arbitration communities. The leading jurisdictions worldwide — in terms of volume and sophistication of third-party funding arrangements — are Australia, the U.K., the U.S. and Germany. In the past, third-party funding was a smaller niche market, but in recent years, the demand for third-party funding services in these and other jurisdictions has grown exponentially, due to innovative third-party funding products that resemble corporate finance or venture capital deals.
Third-party funding in international arbitration
Daily Journal: Litigation and Arbitration
Available at: https://scholarship.law.bu.edu/shorter_works/221