Third-Party Funding in Investment Arbitration

Modern forms of Third-party funding or Third-party financing (TPF) are no longer new to international arbitration. Recent years have seen significant increases in the number of funders, the number of funded cases, the number of law firms working with funders, and the number of reported cases involving issues relating to funding. As a result, third-party funding has increasingly drawn the attention of commentators and scholars, and even more recently of arbitral institutions, national regulatory authorities, and State trade negotiators. This chapter offers an overview of the existing state of regulation of TPF and focuses on the two most important areas which implicate TPF and ISDS, namely conflicts of interest and security for costs.