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Announcements Commercial

Omni Bridgeway Releases Interim Financial Report

The Directors present their report (referred to hereafter as the “Interim Financial Report”), together with the financial statements, on the consolidated entity (referred to hereafter as the "consolidated entity" or "the Group") consisting of Omni Bridgeway Limited (referred to hereafter as "OBL", "the Company" or "the Parent") and the entities it controlled at the end of, or during, the half year ended 31 December 2023. Directors The names of the Company's Directors in office during the half year ended 31 December 2023 and until the date of this report are as below. Unless stated otherwise, the Directors were in office for this entire period. Michael Kay - Non-Executive Chairman Andrew Saker - Managing Director & CEO (retired 26 October 2023) Raymond van Hulst - Managing Director & CEO (appointed 26 October 2023), former Executive Director and Co-Chief Investment Officer – EMEA Michael Green - Non-Executive Director Karen Phin - Non-Executive Director Christine Feldmanis - Non-Executive Director   Highlights for the half year ended 31 December 2023 Operational highlights1
  • US$485 million2 first close of Fund 4 and Fund 5 series II capital raise on improved cost coverage terms.
  • €135 million first tranche of debt capital raised for our €300 million Fund 8, focused on global enforcement investments.
  • Significant expansion of our capabilities in the UK, the world's second largest litigation finance market.
  • Investment income of $235.7 million, including income yet to be recognised, with $50.1 million provisionally attributable to OBL.
  • 12 full completions, 6 partial completions, and a secondary market transaction achieving an overall MOIC of 2.4x, and an IRR of 55%.
  • US$21.5 million cash proceeds from the sale of a 25% interest in a portfolio of 15 intellectual property (IP) investments in Fund 4.
  • $260 million of new investment commitments with 38% improved pricing on FY23.
  • $182 million strong pipeline of new investment opportunities representing a further 29% of our commitments target for the year ending 30 June 2024.
  • Possible investment completions with an estimated portfolio value (EPV) of $5.1 billion over the next 12 months (rolling period).
  • Total cash and receivables of $291.2 million; OBL only cash and receivables of $122.4 million ($80.9 million in OBL balance sheet cash and $40.1 million of OBL share of cash and receivables within Funds), plus $60 million in undrawn debt.
Financial highlights3
  • Total income of $135.8 million (including a net gain on deconsolidation of the Fund 4 IP portfolio) derived from diversified sources comprising litigation completions, a secondary market sale, management fees, and interest revenue.
  • Group profit after tax (before non-controlling interests (NCI)) of $33.4 million (1H23: $30.1 million loss after tax); with $47.6 million loss attributable to OBL (the Group’s equity holders) and $81.0 million profit attributable to NCI.
  • Employee expenses of $34.4 million decreased 12% due to team optimisation, a reduction in contractors and higher capitalised costs of investment managers.
  • Corporate overheads of $9.0 million increased 4% due mainly to the amortisation of the Fund 8 insurance premium, notwithstanding significant reductions in other corporate overhead expenses.
  • Carrying value of litigation investments of $654.7 million (30 June 2023: $596.7 million) across 285 funded litigation investments. Negative case developments including lower than anticipated income, extended duration and adverse milestones associated with a funded law firm portfolio have resulted in a $44.9 million reduction of the carrying value. 
1 Represents non-IFRS information. Here Fund 5 is presented at 100% for consistency of presentation across OBL’s Funds. 2 Inclusive of OBL’s co-funding (OBL’s commitment of US$100 million to each Series II fund is capped at 20% of the ultimate fund size (i.e. after further closings). 3 Per the Group Consolidated Financial Statements. The full Interim Financial Report can be read here. The full 1H24 results Investor Presentation can be read here.
Community Spotlights
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Member Spotlight: Dinesh Natarajan

Trident Strategy is a Singapore-based strategic consultancy that Dinesh Natarajan founded and leads as CEO. Dinesh have over 9 years of experience in law, management consulting, and litigation, and helps clients across various sectors and geographies to achieve their goals in the strategic partnerships and sports, media and entertainment industries. Dinesh combines his skills and knowledge in strategy, legal finance, and arbitration to deliver value-added solutions and insights.

Dinesh is also a Network Member at Lexolent, the world's first globally coordinated network for legal finance professionals. Lexolent connects him with a diverse and dynamic community of experts, investors, and innovators in the rapidly growing field of legal finance. He leverages his expertise in sports law and arbitration to advise and support clients on complex and high-stakes legal matters.

Dinesh is passionate about foreign policy, international politics, and youth leadership, and engages in various platforms and initiatives that foster dialogue, collaboration, and social impact. Dinesh serves his community in various roles, such as sitting on the Management Committee of a Hindu temple, the Legal Committee of the Football Association of Singapore, and the Disciplinary & Ethics Committee of the ASEAN Football Federation. He live by the motto: Serve. Lead. Inspire.

Company Name and Description:   Trident Strategy- a consultancy that provides services in the legal and Sports industry.

Company Website: www.trident-strategy.com

Year Founded:  2021

Headquarters:  Singapore

Area of Focus:  Law, strategy, finance, sports, media, entertainment

Member Quote: Keen to establish a Litigation Fund and interested to speak with players in the industry who could be a mentor and/or partner with.

Commercial Regulatory Issues

Lobbyist for ILFA Calls Failure to Disclose Foreign Entities ‘an Oversight’

As criticism and scrutiny of litigation funding reaches new heights, opponents of the industry will be keeping a close eye on anything that appears to show funders operating in ways that can be framed negatively. A recent article highlights that it is not just funders who are under the spotlight. A newsletter published by Politico earlier this month reported that Miller Strategies, a D.C.-based lobbying firm, said it would update its lobbying disclosures around its work for the International Legal Finance Association (ILFA). These amendments were required, as it had failed to disclose that the following five members of ILFA are foreign companies: Harbour Litigation Funding, Innsworth Advisors Limited, Nivalion AG, Omni Bridgeway and Therium Capital Management. Speaking with Politico, Miller Strategies’ founder and CEO Jeff Miller said that the failure to disclose the foreign entities “was an oversight”, and that the lobbying firm would “amend accordingly.” Miller also added that his firm had paused its work for ILFA at the end of 2023, having been paid a fee of $50,000 per quarter. According to data collated by OpenSecrets, a nonprofit that tracks lobbying spending in U.S. politics, Miller Strategies was paid a total of $110,000 by ILFA in 2023. OpenSecrets tracking also reveals that ILFA paid another lobbying firm, West Front Strategies, $120,000 for its services last year. 
Case Developments Commercial

Burford Capital and Sysco File Objections to Judge’s Denial of Substitution of Plaintiff

As LFJ reported earlier this month, the story of Burford Capital and Sysco’s antitrust lawsuits experienced a new development, with a Minnesota judge denying their joint motions for substitution of plaintiff. As was expected at the time, both the litigation funder and its client have now filed objections and asked the Court to set aside the ruling and allow Burford’s subsidiary to take over the cases. Reporting by Reuters reveals that objections have been filed by both Carina Ventures, a subsidiary of Burford Capital, and Sysco, against U.S. Magistrate Judge John Docherty’s denial of their joint motion for a substitution of plaintiff. The objections, which were filed with the United States District Court of Minnesota on 23 February, both argue that the judge’s order is based on ‘errors of law’. Carina’s filing summarised both parties’ position succinctly, stating that ‘there is no sound policy reason to require Carina to control the prosecution of its claims from the sidelines, rather than litigating them directly in its own name.’ Carina’s objection is formed around two central arguments. Firstly, that Judge Docherty’s order ‘contravenes uniform Eighth Circuit and District Court precedent, as well as the core purposes of Rule 25(c).’ Secondly, that the judge’s ‘public policy reasons for denying substitution are legally erroneous’, with Carina arguing that ‘denial of substitution does not and cannot change Carina’s legal right under the assignment agreement to control the claims.’ Sysco’s objection followed similar arguments around the court’s order running ‘contrary to Rule 25’, whilst also providing three central pillars to its argument around Judge Docherty’s public policy reasoning. Sysco argued that the ‘the public policy favoring settlement also favours substitution’, that the ‘substitution promotes antitrust policy’, and that ‘the doctrine of champerty favors substitution of the claim owner’.  Both Carina Ventures and Sysco concluded their objections by requesting that the Court grant substitution of plaintiff in the antitrust cases.
Announcements Case Developments Commercial

Silver Bull Provides Update on Its Arbitration Claim Against Mexico

Silver Bull Resources, Inc. (“Silver Bull” or the “Company”) provides an update on progress with its international arbitration claim against the United Mexican States (“Mexico”). Since our previous update on September 26, 2023, a number of important steps have been achieved in the arbitration process. These include:
  • The appointment of a three-person arbitration panel (the “Tribunal”) by the International Centre for Settlement of Investment Disputes (“ICSID”). The Tribunal convened its first session with the parties on February 13, 2024.
  • Engagement of a quantum expert by the Company to assess the Company’s claim. The evaluation is underway and will serve as the foundation for determining the value of Silver Bull’s claim against Mexico.
  • Establishment of a definitive timeline agreed upon by both parties and the ICSID Tribunal. Silver Bull anticipates filing its Memorial in May 2024, with the Arbitration hearing slated for October 2025.
  • The Company and its legal representatives at Boies Schiller Flexner continue to prepare the case. Document analysis and interviews with pertinent personnel are progressing as scheduled.
For background on the basis for the arbitration and ongoing updates with respect to the arbitration, please refer to the Company’s website www.silverbullresources.com/news. Regarding the arbitration proceedings, Silver Bull is being represented by the global law firm, Boies Schiller Flexner, and is financially supported by Bench Walk Advisors via a Litigation Funding Agreement for up to US$9.5 million to finance the case.
Announcements Commercial People Moves

RESPECTED LITIGATION FINANCIERS UNITE TO LAUNCH NEW VENTURE

An experienced and agile team today launched Winward Limited (“Winward”), a litigation finance platform focused on being a funder with a lawyer’s mindset. Winward (www.winward.uk) will be run by Jeremy Marshall, its Chief Investment Officer and Managing Director, with committed capital from Rocade Capital. Winward will initially concentrate on funding commercial litigation within Europe and common law jurisdictions although it will also look to capitalise on opportunities that are presented from other jurisdictions that have a mature litigation funding environment. Winward intends to build a balanced portfolio of investments and will aim to work with a select group of law firms and professionals. The initial investment focus is a mixture of litigation and arbitration matters in the fields of antitrust, arbitration, contract, group action, insolvency and tort. Winward’s team is efficient, experienced and is determined to provide a robust service and come to swift and decisive funding decisions, while providing enhanced transparency throughout. Its advisory committee is chaired by Stephen Auld KC, a senior silk from leading chambers One Essex Court in London, and it is comprised of a number of seasoned professionals, all of whom have significant experience of either funding cases or having cases being funded. Wayne Attrill, Arndt Eversberg and Kees Jan Kuilwijk have decades of litigation funding knowledge of, respectively, the Australian, German and Dutch markets. From the UK, Philip Young and Sean Upson, who were senior partners at market-leading litigation practices (Cooke, Young & Keidan and Stewarts Law) will provide essential risk management and litigation skills from the perspective of practising lawyers. Winward is funded by Rocade Capital, a leading litigation finance company backed by one of the world’s leading investment managers. Winward will benefit from a market leading insurance facility provided by co-insurers Arcadian Risk Capital and Litica Ltd. Brian Roth, Chief Executive Officer and Chief Investment Officer of Rocade LLC, said “We are excited to be entering the market with the leadership of a litigation finance veteran in Jeremy Marshall.  This launch is an opportunity for us to contribute to moving our industry forward, as Winward will offer market leading solutions with a streamlined process”. Shoosmiths LLP and Walkers advised Winward Limited. Nixon Peabody LLP served as legal advisor to Rocade LLC. Winward’s insurance broker is Howden Broking Group Limited.

Rocade Capital

Rocade LLC is a specialty finance company focused on litigation finance with a long-term investment approach, in partnership with one of the world’s leading investment managers. Since Rocade’s predecessor was founded in 2014, the platform has funded approximately $1.1 billion of investments in the litigation finance space, primarily consisting of loans to leading plaintiff law firms within mass tort and other complex litigation. Rocade Capital’s flexibility, industry expertise, track record and long-term focus position it to be a leader in law firm lending. Rocade has an experienced team of professionals, located in the Washington, DC area and Houston, TX, which includes both finance industry veterans as well as litigation experts. For more information, please visit www.rocadecapital.com.

Jeremy Marshall

Jeremy was formerly the Chief Investment Officer for Bentham Europe (now Innsworth Advisors), the joint venture between IMF Bentham Limited (now Omni Bridgeway) and subsidiary entities of funds managed by Elliott Management Corporation. He was also a Senior Investment Manager with Omni Bridgeway. He is an experienced litigation finance professional, having worked in litigation finance for well over a decade and, prior to that, having been a partner of a London law firm which litigated a number of funded cases. He has been involved in the funding of a wide variety of cases, including the securities case against Tesco PLC in England (which settled) and a similar case against Volkswagen AG (in Germany). He is a regular contributor and commentator in the litigation finance space.
Commercial Deals

Recoverability and Enforceability are ‘Frequently Neglected’ in Funding Applications

As demand for third-party dispute funding increases, funders are keen to educate potential clients about their own processes for evaluating funding applications and what information they are looking for in these applications. An insights post from LCM’s Roger Milburn, investment manager – APAC, examines the importance of focusing on recoverability and enforceability, arguing that it is an area ‘which would benefit from further attention from those seeking funding and which is sometimes overlooked.’ He points out that, when it comes to submitting funding applications, these are the ‘frequently neglected pieces of the puzzle’ that are essential for any funder when assessing the viability of a case. Explaining the issue from a funder’s perspective, Milburn highlights that it is not enough to simply succeed in the legal action, as this alone ‘does not generally trigger obligations to reimburse the funder and make payment of the contractually agreed returns.’ For a funder to be certain that it can achieve a return on its investment, it is important that an applicant for funding has considered whether the target of the claim ‘has the means to satisfy an outcome of the magnitude contemplated’. If the opponent does not have the resources to meet those payment obligations, it is equally important to scrutinise whether ‘assets exist in jurisdictions where the judgment or award can be enforced.’ Milburn goes on to explore nuances around investor cases brought against nation states or state-controlled entities, noting that whilst it is commonly assumed these states will always have assets to satisfy an award, ‘the question for a funder is whether and how such assets may be seized.’ As a result, prospective clients should aim to provide information around the target state’s history of paying arbitral awards, or what enforcement mechanisms are available for that given jurisdiction. Milburn’s full post, which also provides insights on specific conventions and treaty instruments that manage arbitral award enforcement, can be read here.
Commercial

Aon’s Stephen Kyriacou Named 2024 Specialty Power Broker by Risk & Insurance

The Risk & Insurance 2024 Power Broker winners have been announced, with Stephen Kyriacou, managing director and senior lawyer at Aon, recognized as a ‘Speciality Power Broker’. The post highlights Kyriacou’s work in the litigation and contingent risk insurance market, and his increasing focus on portfolio-based policies over single-case insurance cover.  As part of this recognition, Risk & Insurance spoke with Kyriacou’s clients, who offered significant praise for his work delivering innovative and bespoke solutions to mitigation litigation risk.  One client, a risk manager for a private equity firm, said that the solution crafted byf Kyriacou and his team had “generated meaningful value creation for our portfolio company.” The client went on to praise Kyriacou’s depth of expertise, stating: “His knowledge of the industry market is very strong, and we would not have achieved the result that we did without his involvement and leadership.” In a post on LinkedIn celebrating the announcement, Kyriacou took the chance to give thanks to both his clients and his colleagues at Aon, describing the company’s litigation risk group as ‘the best team in the business.’ The full list of Risk & Insurance 2024 Power Broker winners can be read here. 
Case Developments Commercial

Lansdowne Appoints Lawyers, Continues Search for Funding in ECT Claim Against Ireland

The energy sector is often pinpointed by funders as one of the top targets for investments in litigation and arbitration proceedings, with mechanisms like the Energy Charter Treaty (ECT) creating high value claims that require outside financing. One such claim being brought by an oil and gas company appears to be moving forward, with the claimant still in search of third-party funding. Reporting from Alliance News, shared by Morningstar, provides an update on Lansdowne Oil & Gas efforts to bring a claim against the Irish government. The company announced that it has appointed Mantle Law to lead the legal proceedings, saying that the law firm has “the best dispute and arbitration lawyers in the construction, infrastructure and energy sectors.” The claim is focused on allegations that the Irish government failed to act in a fair and reasonable manner under the ECT when it withdrew an exploration license for the Barryroe prospect. Lansdowne had already invested $20 million in the project. Whilst the focus of the announcement is that Lansdowne has appointed lawyers for the case, it also included the detail that the oil and gas company is still ‘in the process of contacting litigation funders to finance the ECT claim and subsequent arbitration process.’ This is particularly interesting given LFJ’s reporting from July last year that Lansdowne was already in talks with litigation funders to obtain financing for the proceedings. This would suggest that Lansdowne appears to still be in the same position, with regards to securing funding, as it was over seven months ago. As part of the announcement, Lansdowne explained its reasoning for moving forward with the claim, stating: "Given the lack of engagement or any ability to have a respectful and frank conversation with the Irish Government, the company believes it now has no alternative other than to pursue vigorously its ECT claim."