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Omni Bridgeway Releases Investment Portfolio Report at 30 September 2024

By Harry Moran |

Omni Bridgeway Limited (ASX: OBL) (Omni Bridgeway, OBL, Group) announces the key investment performance metrics for the three months ended 30 September 2024 (1Q25, Quarter). 

Summary 

  • Investment proceeds of A$105.8 million in 1Q25; A$14.2 million provisionally attributable to OBL1, excluding management and performance fees. 
  • Performance fees of A$9.7 million received during the Quarter2. 
  • Management, transaction and equivalent fees of A$5.9 million during the Quarter. 
  • 15 full and partial completions in the Quarter, delivered an overall multiple on invested capital (MOIC) of 2.7x. 
  • 7 full completions during the quarter had a combined fair value conversion ratio of 97%3. 
  • A$129 million in new fair value added from A$138 million of new commitments. 
  • Strong pipeline, with agreed term sheets outstanding for an estimated A$198 million in new commitments, if converted. 
  • Transaction fees have successfully been included in nearly all new commitments made in FY25 and/or negotiated in new term sheets. 
  • OBL cash and receivables of A$114 million at 30 September 2024. 
  • A$0.8 billion of fair value in potential completions over the next 12 months. 
  • Good progress in relation to the strategic focus areas of cost optimisation and secondary market transactions. 

Key metrics and developments for the Quarter 

Income and completions 

  • During the Quarter, five full completions and seven partial completions were recognised, and two full completions and one partial completion were recorded as income yet to be recognised (IYTBR), resulting in proceeds of A$105.8 million for the quarter, with A$14.2 million provisionally attributable to OBL (excluding management and performance fees1). 
  • The overall MOIC on these 15 full and partial completions during the quarter (incl. IYTBR) was 2.7x.
  • The seven full completions during the Quarter (incl. as IYTBR) had a combined fair value conversion ratio of 97%.3 The fair value conversion ratio for all 31 fully completed investments (excl. as IYTBR) since transitioning to fair value per 31 December 2023 is 111%. 

New Commitments

  • As per the date of this report, new commitments of A$138 million were made to 10 new investments as well as to a number of investments with increased investment opportunities. This level, proportionate to the full year target, reflects the typical northern hemisphere seasonality, and is in line with prior years.
  • Total new commitments include A$28 million of potential external co-fundings for new investments originated and managed by OBL. OBL will be entitled to separately agreed management fees, transaction and performance fees on such external co-funding.
  • The fair value associated with these new commitments is A$129 million.
  • Strong pipeline of 34 agreed exclusive term sheets, representing approximately A$198 million in investment opportunities.
  • Transaction fees have been successfully included in the majority of new commitments made and term sheets signed in FY25. Transaction fees have typically been structured as a combination of an upfront fee and an annual recurring fee at or exceeding on average 2.5% of the investment commitment (in total over the life of the investment). 

Portfolio review

  • As at 30 September 2024, A$0.8 billion of fair value is assessed to potentially complete in the 12 months until 30 September 2025 (12 Month Fair Value). The 12 Month Fair Value is the proportionate part of our total book fair value, which has expected cash inflows over the applicable 12 month period based on the underlying probability weighted net cash flows fair value models. All, part or none of these investment inflows may eventuate during the 12-month period.

Corporate 

As announced during the full year results presentation on 29 August 2024, the current strategic focus is on cost optimisation, and fair value validation through completions and secondary market transactions. 

Secondary market discussions on multiple assets are progressing well. A status update will be provided at the semi-annual results presentation or through specific prior ASX announcements.

The AGM of the Company will be held in Sydney, on 19 November 2024, and will be in person only. For more information, visit https://omnibridgeway.com/investors/annual-generalmeeting.

Cash reporting and financial position

At 30 September 2024, the Group held A$113.6 million in cash and receivables (A$71.2 million in OBL balance sheet cash, A$1.0 million in OBL balance sheet receivables and A$41.4 million of OBL share of cash and receivables within Funds).

In aggregate, at 30 September 2024 OBL had approximately A$114 million to meet operational needs, interest payments, and fund investments before receiving any proceeds from investment completions, secondary market sales, management and transaction fees, and associated fund performance fees.

Footnotes

  1. Represents indicative cashflows (excluding management and performance fees) from the Funds to OBL in connection with the investment completions. It represents the aggregate estimate of the cash distributed and yet to be distributed under the various distribution waterfalls of the Funds assuming investment proceeds are gross cash proceeds. The Fund’s capital status and waterfalls operate on a cash collection and distribution basis and do not align with the accounting treatment. Accordingly, the income and NCI attribution disclosed in the Group Consolidated Financial Statements will not necessarily match this.
  2. Performance fees received are subject to clawback arrangements, to ensure that performance fees ultimately reflect actual fund returns and applicable hurdles. As a result, accrual of performance fees for accounting purposes will generally occur in a later period to the cash receipt.
  3. The fair value conversion ratio indicates the ratio of cash proceeds and deployments in connection with completed investments, discounted back to the date of the last reported portfolio fair value (30 June 2024 currently), compared to the reported fair value of such completed investments as at that prior reporting date.
  4. All metrics presented are on a full investment basis, excluding the impact of co-investments or partial secondary sales. This reflects a change in methodology from market disclosures prior to FY25, and better reflects the performance of the investments originated, underwritten and managed by the Group.
  5. Full life to date metrics include any partial completions in prior periods for the investments involved.
  6. Relates to full completions recognised and yet to be recognised during the Quarter.
  7. IYTBR reflects the status as per 30 September 2024. If a matter was originally reported as IYTBR for a period and has been recognised as revenue in a later quarter, it is no longer reported in this table as IYTBR in the initial period.
  8. Includes Funds 2&3, Fund 4, Fund 6, and Fund 8 and represents OBL’s portion of each respective Fund.
  9. Includes Fund 5, which is not consolidated within the Group Consolidated Financial Statements, and represents OBL’s 20% interest.
  10. Includes Funds 2&3, Fund 4, Fund 6, and Fund 8 and represents the external investors’ portion of each respective Fund. 

Further information

Further information on terms used in this announcement is available in our Glossary and Notes:

https://omnibridgeway.com/investors/omni-bridgeway-glossary (Glossary)

https://omnibridgeway.com/docs/default-source/investors/general/omni-bridgeway-notes-toquarterly (Notes)

The Glossary and Notes contain important information, including definitions of key concepts, and should be read in conjunction with this announcement.

The investments of Funds 2&3, Fund 4 and Fund 6 are consolidated within the Group Consolidated Financial Statements, along with the interest of the respective external fund investors.

The investments of Fund 8 are consolidated within the Group Consolidated Financial Statements. Fund 1 was deconsolidated on 31 May 2023; its metrics, effective from this date, are not disclosed in this document. The Fund 4 IP portfolio was deconsolidated on 8 December 2023 following the sale of a 25% interest in these investments.

Fund 1 and Fund 5 are not consolidated within the Group Consolidated Financial Statements; the residual interest in Fund 1 and in the Fund 4 IP portfolio are recognised as an investment in associate, Fund 5 is brought in at the Group’s attributable 20% share of income, assets, and liabilities. Throughout this document, Fund 5 is presented at 100% values (except where otherwise stated) for consistency of presentation across OBL’s funds.

Commitments include conditional, and investment committee approved investments. This report includes a number of concepts, such as fair value and income yet to be recognised, which are classified as a non-IFRS financial measure under ASIC Regulatory Guide 230 “Disclosing non-IFRS financial information”. Management believes that these measures are useful for investors to understand the operations and financial condition of the group. Unless expressly stated, this non-IFRS financial information has not been subject to audit or review by BDO in accordance with IFRS.

The figures presented in this document are based on preliminary data and have not been audited. While every effort has been made to ensure the accuracy of the information, these figures are subject to change and should not be considered final. 

This announcement is authorised for release to the market by the Disclosure Committee.

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Harry Moran

Harry Moran

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Announcements Commercial Deals

Arena Investors, LP and Fort Morgan Capital Partner to Launch $50 Million Litigation Finance Venture

By Harry Moran |

Arena Investors, LP ("Arena") and Fort Morgan Capital, a subsidiary of SimpleCITI Companies ("SimpleCITI"), are proud to announce the launch of a $50 million joint venture ("JV") focused on providing law firm finance solutions for US law firms. Targeting growth financing between $1 million to $15 million, the JV will offer capital secured by the value of a law firm's aggregate legal assets (cases).  Patrick Shannon will lead JV operations with a focus on diligence, underwriting, servicing, and originations.

About the Joint Venture

The JV has already started deploying capital, with the goal of delivering $50 million in tailored financing solutions.  Capital will be utilized to navigate growth by scaling operational infrastructure and investments in marketing.  This comprehensive approach ensures that law firms can focus on achieving successful outcomes without the financial strain of upfront costs.

Arena has a long history in legal asset investments, including its principals having helped build some of the earlier litigation finance platforms dating back to the late 1990s.  SimpleCITI builds on a proven track record of leadership and innovation across diverse industries, establishing itself as a trusted partner in solving complex financial challenges. Together, Arena and SimpleCITI leverage their unparalleled expertise to redefine client-focused solutions in litigation finance."

Strategic Collaboration

Arena Managing Director, Victor Dupont, noted that "Arena is very excited to expand and build upon our nearly decade-long relationship and successful track record with Patrick in this new joint venture.  Fort Morgan Capital will serve a critical role in working with select legal practices and market participants in navigating liquidity challenges amid this fluctuating market, while also promoting sustainable operational and marketing growth."

"This JV represents a strategic milestone for Fort Morgan Capital," said a SimpleCITI spokesperson. "By partnering with Arena, we're unlocking new opportunities for law firms to grow sustainably while maintaining financial stability.  This venture underscores our commitment to innovation and value creation in the litigation finance space."

Pat Shannon added, "Our focus on episodic opportunities within litigation finance aligns perfectly with this venture. Together, we are delivering a scalable platform that empowers law firms to thrive in a competitive landscape."

About Arena Investors, LP:

Arena Investors, a subsidiary of Arena Investor Group holdings, is an institutional asset manager founded in partnership with The Westaim Corporation (TSXV: WED). With approximately $3.5 billion of invested and committed assets under management as of December 31, 2024, and a team of over 180 employees in offices globally, Arena provides creative solutions for those seeking capital across all corporate, real estate, and structured finance investment areas, at all levels of the capital structure, and in all developed markets, alongside operational capabilities to manage and improve businesses.  The firm brings individuals with decades of experience, a track record of comfort with complexity, the ability to deliver within time constraints, and the flexibility to engage in transactions and business operations that cannot be addressed by banks and other conventional financial institutions. See www.arenaco.com for more information.

About SimpleCITI Companies:

SimpleCITI Companies is an operational-first platform specializing in real estate (SimpleEQUITIES), litigation finance (Fort Morgan), and fiduciary advisory services (SimpleADVISORY). The firm provides institutional-grade solutions across sophisticated markets. Fort Morgan, the litigation finance division, offers innovative funding solutions for law firms, blending conservative valuation with operational expertise. SimpleADVISORY ensures disciplined underwriting and compliance to support Fort Morgan's strategic initiatives.

About Pat Shannon:

Pat Shannon brings extensive industry expertise, previously serving as Chief Operating Officer at Mustang Litigation Funding, a platform renowned for its proficiency across diverse litigation finance disciplines. With a focus on episodic and idiosyncratic opportunities in niche sub-sectors, Pat leads the JV's diligence, underwriting, and origination efforts.

Announcements Consumer

Legal Bay Presettlement Funding Reports Updates to Zantac Lawsuits

By Harry Moran |

Legal-Bay LLC, a leading pre settlement funding company, reports that November's $2.2 billion ruling against GlaxoSmithKline has still not been distributed to 80,000+ Zantac plaintiffs. The UK-based pharmaceutical company has been the target of numerous lawsuits for the past five years with plaintiffs alleging the popular heartburn medication causes cancer, and that the company failed to warn users that its main ingredient—ranitidine—may be a human carcinogen.

Testing last month determined how such dangerous levels of ranitidine ended up in the antacid product. As it turns out, impurities in the NDMA found in ranitidine increase when exposed to higher temps and humid conditions. Meaning that the Zantac may have been manufactured correctly, but when it was stored in a damp bathroom or glove compartment of a car, users themselves may have unwittingly triggered the very agent that caused their cancer. 

Chris Janish, CEO of Legal Bay, says, "GSK felt it was in the company's best interest to settle the lawsuits in order to appease shareholders rather than draw out litigation endlessly, especially considering they have been able to do so while providing no admission of liability. While we don't have an exact timeline for when payouts are expected to begin, we are nonetheless offering funding for Zantac plaintiffs while they wait."

To apply for a cash advance lawsuit loan from your anticipated GSK Zantac lawsuit settlement, please visit the company's website HERE or call 877.571.0405.   

There is no way to estimate final settlement amounts or how much each plaintiff's case will be worth. Similar case values have been determined based on extent/amount of injuries along with the level of merit to the case. Each case is unique, and many factors go into deciding final damages. For the Zantac lawsuit payouts, plaintiffs will fall into one of three tiers:

  • Tier I:

Tier 1 injuries can expect payouts in the $300,000 range.  Injuries in this tier include cancers of the stomach, prostate, pancreas, or breast.

  • Tier II:

Tier 2 injuries can expect payouts between $80,000 and 160,000 in most cases.  Injuries in this tier include cancers of the major organs like bladder, kidney, or liver.

  • Tier III:

Tier 3 injuries are looking at payouts anywhere between $20,000 and $60,000.  Injuries in this tier vary greatly, but to a lesser extent than Tier I or II.

The verdicts in these lawsuits are wildly inconsistent and entirely unpredictable, and Legal Bay says there are no guarantees of award amounts nor time frames for payouts just based on the sheer number of claims to process. Nevertheless, Legal-Bay is one of the few legal funding companies who are providing some financial relief to Zantac lawsuit plaintiffs and their families with risk-free, non-recourse cash advance settlement loans. They have been a leader in the mass tort and Qui Tam arena for over fifteen years and have vast experience within this space. These litigations are complex, and Legal Bay has the knowledge and understanding to help plaintiffs navigate the complicated waters of the legal system.

If you're a plaintiff in an active GSK Zantac lawsuit and need an immediate cash advance from your anticipated settlement, please visit the company's website HERE or call 877.571.0405 where agents are standing by to hear about your specific case. 

Legal-Bay is one of the best lawsuit loan companies when it comes to mass tort and Qui Tam litigations, and has a great reputation within the industry. Legal-Bay assists plaintiffs in all types of class action and mass tort lawsuits, including: Round Up, Hernia Mesh, IVC Filters, Essure, Exactech hip and knee recall, Sex Abuse cases, JUUL, and more.

Legal-Bay assists plaintiffs in all other types of lawsuits including personal injury, dog bites, motor vehicle accidents, medical malpractice, police brutality, unlawful incarceration, workplace discrimination, wrongful termination, and more.

Legal-Bay's loan for settlement funding programs are designed to provide immediate cash in advance of a plaintiff's anticipated monetary award. While it's common to refer to these legal funding requests as settlement loans, loans for settlements, law suit loans, loans for lawsuits, etc., the "lawsuit loan" funds are, in fact, non-recourse. That means there's no risk when it comes to loans in lawsuit settlements because there is no obligation to repay the money if the recipient loses their case. Therefore, terms like settlement loan, loans for lawsuit, loans on settlement, or lawsuit loan funds don't necessarily apply, as the "loan on lawsuit" isn't really a loan at all, but rather a stress-free cash advance.

Legal-Bay is known to many as the best lawsuit funding provider in the industry for their helpful and knowledgeable staff, low rates, and quick turnaround, sometimes within 24-48 hours once all documents have been received.

To apply right now for a loan settlement program, please visit the company's website HERE or call toll-free at: 877.571.0405 where agents are standing by to answer any questions.

Announcements Commercial Legal Innovation

Latest Burford Quarterly Explores Key Trends Driving Innovation in Commercial Disputes in 2025

By Harry Moran |

Burford Capital, the leading global finance and asset management firm focused on law, today releases its latest Burford Quarterly, a journal of legal finance that explores top trends at the nexus of law and finance.

This Burford Quarterly examines the innovative ways in which businesses and law firms are reimagining their financial strategies around commercial disputes. Examples of this include law firms using creative billing structures as alternatives to hourly fees; companies choosing to opt out of litigation to maximize and accelerate recoveries; or businesses monetizing IP assets, allowing for continued investment in other vital areas of the business.

Articles in the Burford Quarterly No.1 2025 include:

  • The innovation engine: Legal finance for forward-thinking law firms

As law firms launch into 2025, a year that promises continued disruption and opportunity, innovation is not a choice—it's an imperative. Forward-thinking firms are reimagining their financial strategies, moving beyond traditional models to embrace legal finance as a critical tool for transformation. In this article, Travis Lenkner and Emily Slater explore innovative ways legal finance is helping firms solve pressing challenges and accelerate growth. 

  • Healthcare antitrust opt-outs: Improving liquidity by monetizing valuable legal claims

An increasing number of healthcare businesses are recognizing the value that legal finance provides in helping to mitigate the financial strain of high-cost litigation and expedite recoveries in high-stakes litigation. Ahead of a March 2025 opt-out deadline for claimants in the Blue Cross Blue Shield (BCBS) antitrust class actions, Charles Griffin summarizes insights from a recent webcast in which experts from Burford and Paul Hastings presented factors hospital networks and providers should consider in weighing their options.

  • Legal finance and life sciences: Unlocking IP potential in pharma, biotech and medical devices

Innovation in Europe's life sciences and pharmaceutical sectors is vital, but long R&D cycles and short profit windows pose challenges. Joshua Harris explains how legal finance helps companies protect and monetize IP assets, enabling continued investment in life-saving technologies.

  • International arbitration in London: Next-Gen leaders' perspective

Geoff Nicholas, Christiane Deniger and James MacKinnon lead a Burford roundtable with London-based arbitration lawyers. Partners from A&O Shearman, Debevoise & Plimpton, Bryan Cave Leighton Paisner and Freshfields share their insights on key trends and challenges shaping international arbitration, including the use of technology and AI and arbitral efficiency.

Aviva Will, President of Burford Capital, says: "While the legal industry may be slow to evolve, legal finance is a powerful tool to drive innovation in the business of law. This issue of the Burford Quarterly highlights key trends in commercial litigation and arbitration in 2025 and shows how litigation funding continues to shape the legal industry. By providing capital and mitigating risk, funding removes barriers for businesses and facilitates growth, and the latest Quarterly brings insights, analysis and real-world examples of tools to help business executives, GCs, CLOs and law firm attorneys recognize and harness the full potential of finance for law."

About Burford Capital

Burford Capital is the leading global finance and asset management firm focused on law. Its businesses include litigation finance and risk management, asset recovery and a wide range of legal finance and advisory activities. Burford is publicly traded on the New York Stock Exchange (NYSE: BUR) and the London Stock Exchange (LSE: BUR), and it works with companies and law firms around the world from its offices in New York, London, Chicago, Washington, DC, Singapore, Dubai and Hong Kong.

For more information, please visit www.burfordcapital.com.

This announcement does not constitute an offer to sell or the solicitation of an offer to buy any ordinary shares or other securities of Burford.