At its inaugural annual conference on October 24 in New York, the International Legal Finance Association (ILFA) gathered a group of arbitration experts to discuss the future of international arbitration.
“Essentially a lot of companies don't have the capital to pursue arbitration, especially at the investor state level which will take millions of dollars. If they're a single asset company, they certainly will not have the capital. Multi asset companies do perhaps have the capital, but they need that capital to be deployed in their existing infrastructure and in their business—and that is why third-party funders have become a very necessary and important feature of this environment. Therefore, it is so important for companies to select a funder that's best in class and the most experienced in the area of litigation that is relevant to you.”
- Anna El-Erian, Director, Gabriel Resources
The financing of international arbitration claims is on the rise; as El-Erian observes, companies are increasingly eager to mitigate the rising cost and uncertainty of treaty and commercial arbitration. Even companies with strong cash reserves often welcome the flexibility to pursue the asset value tied up in pending arbitration without taking on the significant upfront costs or downside risk of pursuing them.
El-Erian also highlights the importance of choosing the right legal finance provider. With the most permanent capital and the world’s most experienced team, Burford is the preferred financing partner for investor-state and international commercial arbitrations—which by definition require not only expertise but also a financing partner with sufficient capital to be a reliable and aligned partner for the long term.
About the panel
The panel was moderated by Lindsay Gastrell, Senior Counsel, Arbitration Chambers; Lee Caplan, Partner, Arent Fox Schiff; Anna El-Erian, Director, Gabriel Resources; Ina Popova, Partner, Debevoise & Plimpton and Jara Minguez Almeida, Team Leader / Legal Counsel, ICSID.