A Strategic Base for a Third-Party Litigation Funder’s Growth in Asia

As a premier arbitration hub, Hong Kong offers an ideal environment and a wealth of opportunities to support Deminor Litigation Funding (Deminor)’s expansion in Asia.

Hong Kong has long been recognised as a global hub for arbitration and dispute resolution, with third-party funding for arbitration and insolvency cases being permissible under its legal framework. This favourable environment attracted Deminor, a renowned international third-party litigation funder, to establish its regional headquarters in Hong Kong in 2018. The firm’s recent expansion in the city is part of its broader strategy to strengthen its presence in Asia.

As a third-party funder, Deminor pays for costs directly related to a dispute resolution process, including legal fees, arbitration fess and enforcement costs, thus enabling claimants to seek dispute resolution without hefty financial burden. In return, it takes a share of any recovered damages as its investment return, while the funded party incurs no fees. If the funded party loses the case, Deminor does not recover any of the money it invested into the case from the funded party. Its Hong Kong office has an impressive reputation for delivering results. About 80 percent of its clients achieves positive outcomes in their cases.

Strategic Location and Top-tier Arbitration Services

According to Irene Lee, General Counsel (Greater China and Southeast Asia) of Deminor, Hong Kong serves as a strategic base for the firm’s global expansion. “Hong Kong is renowned for its robust arbitration framework, highly efficient arbitration services, and dynamic financial ecosystem. These attributes make it an attractive hub for litigation funders seeking a secure and reliable environment to manage their investments. We are expanding into other jurisdictions like Singapore, Japan and Korea from our base in Hong Kong,” Lee stated. “Our professional services as funder also play a role in reinforcing the city’s status as a leading arbitration hub. The financial support we provide to parties allows them to pursue their claims in Hong Kong.”

Lee added that the city has a pool of professional legal and dispute resolution practitioners, further enhancing its appeal for litigation funders to tap into the burgeoning market in Mainland China and the broader Asia-Pacific region. “The Mainland market is our key focus in the region, with over 50 percent of our clients coming from there,” she noted.

Expanding Horizons in the GBA

The policies of both the Central government and the Hong Kong government are increasingly supportive of Mainland Chinese companies seeking to expand globally. This creates significant potential for litigation funding, as these companies may face the complexities of international disputes.

“We are well-positioned to capitalise on the growing demand for arbitration support services, particularly as businesses navigate the challenges of cross-border operations. The reciprocal enforcement arrangement between Hong Kong, Mainland China and Macao facilitates the recognition and enforcement of arbitration awards across these jurisdictions,” she stated. “Looking ahead, we will strengthen our marketing efforts in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) to seize emerging opportunities and foster deeper collaborations with local businesses.”

Lee appreciates InvestHK’s support in connecting them with key players in the business community and facilitating valuable partnerships. “Through its tailored services, we can further enhance our position in the third-party funding landscape,” Lee concluded.