Originally from Handbook on Third-Party Funding in International Arbitration, Second Edition

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1.  The TPF market in Austria

1.1.  Please shortly describe the TPF market in your Jurisdiction.

Third-Party Funding (“TPF”) is commonly used and well-established in Austrian arbitration proceedings. Although Austrian law does not contain specific rules or restrictions that address TPF, TPF is widely accepted among parties, counsels as well as arbitrators and continues to gradually establish itself as an integral part of Austrian arbitration proceedings. However, absent an obligation to disclose the existence of TPF under Austrian arbitration law and due to the fact that most arbitration proceedings are confidential, there exist no exact figures.

The number of litigation cases involving TPF is rising steadily as well since TPF is especially common in Austrian-style class actions. There exist no specific rules or restrictions addressing TPF with regard to litigation proceedings, either.

1.2.  Is it dominated by local or international Funders? Which Funders are active? Which cases typically get funded?

Austria has a long tradition of TPF with local as well as international funders active in Austrian market for many years (mainly focused on litigation proceedings). One of the biggest local (litigation) funders is AdvoFin Prozessfinanzierung AG, an Austrian company funded by Austrian institutional investors already in 2001. Its funding activities are very diverse and range from proceedings against car manufacturers, banks, cartels to casinos. Another significant Austrian litigation funder is LVA24 Prozessfinanzierung which belongs to the internationally active Green Finance Group AG. Its focus lies on consumer rights in areas such as life insurance class actions or medical malpractice-physician liability.

Most of the international funders active in the Austrian TPF market are seated in neighboring countries such as Germany, Switzerland and Liechtenstein. This includes Nivalion AG (specialized in high-value arbitration and litigation cases) and FORIS AG (specialized in banking related cases as well as inheritance and antitrust disputes). Major international funders, such as Burford Capital, are also active in the Austrian market.