Mechanics of Third-Party Funding Agreements:A Funder’s Perspective

This article aims to provide an overview of the issues associated with a litigation funding agreement (LFA) governing the non-recourse financing of an arbitration case. It covers the key items relevant when structuring a litigation funding transaction, from understanding what drives the financial terms to performing due diligence on the merits of the case and designing the sophisticated contractual framework required to deal with the interests of the various stakeholders.