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

PREVIEW PAGE

PART I.  THE THIRD-PARTY FUNDING LANDSCAPE

1.  The TPF market in Sweden

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

TPF is a relatively new phenomenon in Sweden. For a long time, and until quite recently, TPF was largely unheard of and a rare occurrence. However, over the past few years, the market has been growing fast. TPF has become more popular, with a significant increase in awareness and interest from litigants and their counsel. Both domestic and international third-party funders have begun to operate in Swedish litigation and arbitrations.

However, while the market for TPF is on the rise, it is still in an early phase. It is not commonly used, and “traditional” funding is still the preferred method by most large companies. In a law firm survey conducted in 2024 only 10% of the participants answered that they had used, or had considered using, TPF. 

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

There are currently two prominent Swedish third-party funders operating actively in the country, namely Kapatens Partners AB and Litigium Capital Investment AB, founded in 2019 and 2021 respectively. Both Kapatens and Litigium are primarily focused on disputes in the Nordics.