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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.

About the author

Harry Moran

Harry Moran

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Announcements Case Developments Commercial

Australian Google Ad Tech Class Action Commenced on Behalf of Publishers

By Harry Moran |

A class action was filed on 16 December 2024 on behalf of QNews Pty Ltd and Sydney Times Media Pty Ltd against Google LLC, Google Pte Ltd and Google Australia Pty Ltd (Google). 

The class action has been commenced to recover compensation for Australian-domiciled website and app publishers who have suffered financial losses as a result of Google’s misuse of market power in the advertising technology sector. The alleged loss is that publishers would have had significantly higher revenues from selling advertising space, and would have kept greater profits, if not for Google’s misuse of market power. 

The class action is being prosecuted by Piper Alderman with funding from Woodsford, which means affected publishers will not pay costs to participate in this class action, nor will they have any financial risk in relation to Google’s costs. 

Anyone, or any business, who has owned a website or app and sold advertising space using Google’s ad tech tools can join the action as a group member by registering their details at www.googleadtechaction.com.au. Participation in the action as a group member will be confidential so Google will not become aware of the identity of group members. 

The class action is on behalf of all publishers who had websites or apps and sold advertising space using Google’s platforms targeted at Australian consumers, including: 

  1. Google Ad Manager (GAM);
  2. Doubleclick for Publishers (DFP);
  3. Google Ad Exchange (AdX); and
  4. Google AdSense or AdMob. 

for the period 16 December 2018 to 16 December 2024. 

Google’s conduct 

Google’s conduct in the ad tech market is under scrutiny in various jurisdictions around the world. In June 2021, the French competition authority concluded that Google had abused its dominant position in the ad tech market. Google did not contest the decision, accepted a fine of €220m and agreed to change its conduct. The UK Competition and Markets Authority, the European Commission, the US Department of Justice and the Canadian Competition Bureau have also commenced investigations into, or legal proceedings regarding, Google’s conduct in ad tech. There are also class actions being prosecuted against Google for its practices in the ad tech market in the UK, EU and Canada. 

In Australia, Google’s substantial market power and conduct has been the subject of regulatory investigation and scrutiny by the Australian Competition and Consumer Commission (ACCC) which released its report in August 2021. The ACCC found that “Google is the largest supplier of ad tech services across the entire ad tech supply chain: no other provider has the scale or reach across the ad tech supply chain that Google does.” It concluded that “Google’s vertical integration and dominance across the ad tech supply chain, and in related services, have allowed it to engage in leveraging and self-preferencing conduct, which has likely interfered with the competitive process". 

Quotes 

Greg Whyte, a partner at Piper Alderman, said: 

“This class action is of major importance to publishers, who have suffered as a result of Google’s practices in the ad tech monopoly that it has secured. As is the case in several other 2. jurisdictions around the world, Google will be required to respond to and defend its monopolistic practices which significantly affect competition in the Australian publishing market”. 

Charlie Morris, Chief Investment Officer at Woodsford said: “This class action follows numerous other class actions against Google in other jurisdictions regarding its infringement of competition laws in relation to AdTech. This action aims to hold Google to account for its misuse of market power and compensate website and app publishers for the consequences of Google’s misconduct. Working closely with economists, we have determined that Australian website and app publishers have been earning significantly less revenue and profits from advertising than they should have. We aim to right this wrong.” 

Class Action representation 

The team prosecuting the ad tech class action comprises: 

  • Law firm: Piper Alderman
  • Funder: Woodsford
  • Counsel team: Nicholas de Young KC, Simon Snow and Nicholas Walter
Announcements Consumer

Rockpoint Legal Funding Shines at Consumer Attorneys of California Annual Convention

By Harry Moran |

Rockpoint Legal Funding proudly participated in the annual conference hosted by the Consumer Attorneys of California (CAOC), showcasing its commitment to supporting legal professionals and their clients. As the only funding company endorsed by CAOC, Rockpoint Legal Funding leveraged this premier event to connect with new and prospective partners reinforcing its position as a trusted funder within California's legal community.

The CAOC is a prestigious network of attorneys dedicated to protecting the rights of California consumers. Each year, the organization hosts its annual convention, bringing together some of the brightest legal minds and innovators in the industry. For Rockpoint Legal Funding, this event was an invaluable opportunity to demonstrate its unwavering dedication to empowering attorneys and their clients through tailored legal funding solutions.

During the convention, Rockpoint operated a booth where team members engaged with attendees, offering insights into the company's services and how they benefit both legal professionals and consumers seeking justice. From new attorneys looking for funding solutions to established firms aiming to streamline their case workflows, Rockpoint provided personalized advice and showcased its comprehensive suite of legal funding options.

"Rockpoint is proud to partner with the Consumer Attorneys of California. We take a lot of pride in serving the attorneys and their clients of this prestigious organization," said Ramtin Ghaneeian, Founding Partner of Rockpoint Legal Funding. His statement highlights the company's commitment to strengthening its collaboration with CAOC and continuing to support its mission of safeguarding the rights of California consumers.

President of Rockpoint Legal Funding, Maz Ghorban, emphasized the value of building strong relationships at events like this, stating, "It's a privilege to connect with our law firm partners at the CAOC convention each year while ensuring our values align with protecting California consumers through legal recourse."

Rockpoint's presence at the CAOC annual convention underscores its dedication to fostering meaningful connections within the legal community. By being the only CAOC-endorsed funding company, Rockpoint reinforces its credibility and reliability in the legal funding landscape. This endorsement is a testament to Rockpoint's shared vision with CAOC in championing consumer rights and providing critical support to those navigating the justice system.

For attorneys and law firms, Rockpoint Legal Funding offers a variety of non-recourse funding solutions, ensuring clients have the financial support they need during ongoing litigation. This commitment aligns perfectly with CAOC's mission to advocate for justice and fairness for California consumers.

As Rockpoint continues to deepen its relationships with legal professionals, events like the CAOC annual convention remain a cornerstone of its outreach efforts. The company looks forward to future collaborations and furthering its impact within the legal community.

For more information about Rockpoint Legal Funding and its services, visit Rockpointlegalfunding.com or call (855) 582-9200.

About Rockpoint Legal Funding

Rockpoint Legal Funding is a leading provider of non-recourse legal funding solutions, serving attorneys and their clients with unparalleled expertise and care. With a mission to empower justice and support favorable case outcomes, Rockpoint is committed to providing financial assistance during critical times, ensuring no one is denied access to legal recourse due to financial constraints.

Announcements Commercial Fundraising

Nera Capital Secures Additional $25 million in New Funding Deal

By Harry Moran |

Top litigation finance firm Nera Capital is ending the year on a high with the announcement of yet another successfully closed funding deal, this time securing $25 million to bolster UK consumer protection claims.

The funding, secured through a US-based investment partner, reflects yet another significant milestone for the firm as it continues to build momentum and strengthen its foothold in the market. 

This recently closed funding deal builds on a prosperous year of growth for Nera Capital, further demonstrating its capabilities across the globe. The investment will be directed towards advancing claims that protect UK consumers, enabling greater access to justice for individuals seeking redress.

With offices in Dublin, Manchester, and Amsterdam, Nera Capital has consistently demonstrated its commitment to driving innovation and impact in litigation finance worldwide. This latest funding announcement underscores Nera Capital’s ability to forge strategic international partnerships that deliver meaningful results. 

In 2024, Nera have hit record numbers of settlements, deployment and company profitability but also grown major portfolio positions in Europe and the USA.

Aisling Byrne, Director at Nera Capital, commented on the announcement: “We are happy to have closed yet another significant funding deal, further cementing our position as a leading force in consumer protection litigation. We anticipate this initial facility figure will increase as our partnership strengthens and thrives over time.

She added: “This is not just about financial growth; it’s about expanding our ability to make a difference. With this funding, we are reinforcing our commitment to fairness and justice, empowering consumers, and holding organisations accountable.”

The announcement follows the recent launch of Nera Capital’s £250,000 Access to Justice Fund, aimed at providing legal and financial support to those who may otherwise face barriers to justice.

The firm’s efforts come at a time of heightened focus on consumer rights across the world, driven by evolving legal frameworks, increased attention to data privacy, and growing concerns about sustainability and corporate accountability.

“This funding is another step forward in a year of tremendous progress for Nera Capital,” Aisling continued.

“As we look to 2025, we remain committed to leveraging our resources and expertise to protect consumers and advocate for justice on both sides of the Atlantic.“ 

About Nera Capital 

·       Established in 2011, Nera Capital is a specialist funding provider to law firms.  

·       Provides Law Firm Lend funding across diverse claim portfolios in both the Consumer and Commercial sector. 

·       Headquartered in Dublin, the firm also has offices in Manchester and Holland. 

·       Member of European Litigation Funders Association

.     www.neracapital.com