Third-Party Funding
Third-Party Funding is when an outside company pays for legal costs in exchange for a portion of any money won in the case. This is especially common in arbitration cases, which are like private court proceedings. Think of it as having a financial backer who believes in your case enough to invest in it. This helps clients who might not be able to afford expensive legal proceedings on their own. The funding can cover lawyer fees, expert witness costs, and other expenses related to the case. This practice is also sometimes called "litigation funding" or "legal financing."
Examples in Resumes
Successfully secured Third-Party Funding for international arbitration cases worth over $50M
Managed relationships with Third-Party Funders for complex commercial disputes
Prepared Litigation Funding applications resulting in secured financing for 15 major cases
Evaluated potential Third-Party Funded cases and achieved 80% success rate in funding approvals
Typical job title: "Third-Party Funding Specialists"
Also try searching for:
Where to Find Third-Party Funding Specialists
Professional Organizations
Job Boards
Professional Networks
Example Interview Questions
Senior Level Questions
Q: How do you evaluate the potential success rate of a case for third-party funding?
Expected Answer: Should explain the process of assessing case merits, potential recovery amount, estimated costs, timeline, and enforcement prospects. Should mention importance of reviewing documentation and working with legal teams.
Q: What are the key terms you would include in a funding agreement?
Expected Answer: Should discuss return structures, control provisions, confidentiality, settlement authority, termination rights, and how to handle adverse costs.
Mid Level Questions
Q: What are the main risks to consider when arranging third-party funding?
Expected Answer: Should discuss case failure risk, length of proceedings, cost overruns, enforceability of awards, and relationship management between funder and client.
Q: How do you maintain client confidentiality while working with funders?
Expected Answer: Should explain use of NDAs, information sharing protocols, and proper document management practices.
Junior Level Questions
Q: What is the basic process of securing third-party funding?
Expected Answer: Should outline steps from initial case review to funding proposal, due diligence, and agreement negotiation.
Q: What are the main benefits of third-party funding for clients?
Expected Answer: Should mention risk sharing, access to justice, cash flow management, and validation of case strength.
Experience Level Indicators
Junior (0-2 years)
- Basic case assessment
- Understanding funding structures
- Document organization
- Client communication
Mid (2-5 years)
- Due diligence management
- Funding agreement drafting
- Risk assessment
- Portfolio management
Senior (5+ years)
- Complex deal structuring
- Investment committee presentations
- Strategic case management
- Relationship building with funders
Red Flags to Watch For
- No understanding of basic legal processes
- Lack of financial analysis skills
- Poor attention to detail in documentation
- Limited knowledge of arbitration procedures
- Weak negotiation skills
