The litigation finance industry has grown rapidly in recent years, including in New York, where a number of major players in this field are based or maintain a substantial presence. In addition to financing new claims, the litigation finance industry has developed a secondary market for the buying and selling of arbitral awards.
Award creditors may face a long and uncertain battle, particularly where enforcement efforts are pursued against sovereign States. For many creditors, a sale-and-assignment transaction can offer an appealing exit strategy (subject, of course, to the need to perform a careful analysis of potential legal obstacles and pitfalls).
