What is an investment arbitration?
Investment arbitration is an international dispute resolution mechanism used when a foreign investor believes that a State has violated rights granted by a treaty, contract, or investment law.
At Loopa, we finance investment arbitrations initiated by companies, individuals, or funds that have suffered damages as a result of arbitrary, discriminatory, or illegal acts by a host State.
These disputes are governed by international treaties for reciprocal protection of investments (TPIs or BITs), specific chapters in free trade agreements, or multilateral conventions such as ICSID, allowing investors to claim multimillion-dollar compensations for direct or indirect expropriations, unequal treatment, lack of legal security, or denial of justice.
Investment arbitrations are highly technical, costly, and lengthy procedures. They involve international legal teams, financial expertise, specialists in public international law, and complex documentation requiring detailed preparation and sustained resources over several years. Additionally, the opposing party is often a State with the capacity to deploy extensive defensive strategies and incentives to prolong the process. This makes it challenging for many investors to litigate due to lack of liquidity or aversion to associated financial risks, even when the legal merit of the case is strong.
At Loopa, we finance these arbitrations from a position of strategic support.
We cover legal costs, tribunal expenses, expert reports, administrative fees, and any necessary disbursements to sustain the arbitral process from initiation to awards and enforcement phases. We can also advance capital against the estimated claim value, allowing the client to receive funds in advance while the process continues. This is particularly valuable for funds, economic groups, or companies needing to preserve operational liquidity without forfeiting their right to claim fair compensation.
Our financing is structured on a non-recourse basis: if the case does not succeed, the client is not obligated to repay the funds provided. This aligns our interests with those of the investor and turns financing into a powerful risk management tool, enabling progress without committing own resources or diverting funds from core operations. We evaluate each case rigorously, combining legal analysis, economic dimensions of the dispute, and the real feasibility of award enforcement in case of success.
We finance arbitrations under:
ICSID
UNCITRAL
Bilateral investment treaties
Investment chapters of multilateral treaties such as USMCA or the EU-Mercosur Agreement
And other international mechanisms provided in regional agreements.
We also analyze situations where there is a concrete threat of harmful state action to activate a preventive strategy or structure an early action to preserve the investor's rights. We intervene in cases of uncompensated expropriation, regulatory blockades, license cancellations, discrimination against local competitors, violation of fair and equitable treatment clauses, or imposition of tax or administrative measures with confiscatory effects.
Our financing targets multinational companies, investment funds, business groups, individuals with investments protected by international treaties, and legal firms leading these arbitrations seeking a financial partner to sustain the strategy without budget limitations. We also work with holders of favorable awards needing support to execute and collect their credit against States reluctant to voluntary compliance.
In a global context where States remain key economic players and regulatory frameworks can change abruptly, investment arbitration remains an essential tool to protect and recover the value of foreign investments. At Loopa, we provide capital, experience, and strategic focus so that investors can assert their rights with legal strength and financial backing.
If you are involved in an investment dispute or have an award pending enforcement, we can help finance it and maximize your chances of recovery.