1.1.1. Is TPF commonly used in your Jurisdiction? If yes, since when (is it a new trend or a well-established practice)?
The Australian Third-Party Funding (TPF) market has been operating for around two decades and is now well established. While TPF is not prevalent in Australia, it is not uncommon.
TPF products are most widely used in insolvency, large commercial claims and class actions. The range of TPF products is increasingly varied and sophisticated, with significant influence from the private equity and investment banking sectors. As a result, the Australian TPF market has moved beyond linear funding (one funder from the start to the finish of the case) to more diverse forms of participation, including funding methods based on syndication, options and farm-in/farm-out structures.
1.1.2. Please shortly describe the TPF market in your jurisdiction.
a) Is it dominated by local or international Funders, which type of Funders are active, which cases get typically funded?
The TPF market in Australia primarily consists of local funders and is focused on funding litigation (typically insolvency, large commercial claims and class actions) as opposed to arbitration. This may be due to a perception amongst Australian funders that outcomes in arbitration are less certain and carry greater risk due to there being no right of appeal. There has, however, been a recent shift toward a greater appetite to fund arbitration amongst the Third-Party Funders most active in Australia.