Omni Bridgeway Drives Record FY25 Proceeds, Completes $320M Fund 9 Deal
Omni Bridgeway reports robust investment performance for FY25, highlighted by record proceeds and a landmark Fund 9 transaction that strengthens its balance sheet and strategic position.
- FY25 total proceeds reach A$520.6 million, excluding Income-Yet-To-Be-Recognised
- Fund 9 transaction completed with Ares Management, generating A$320 million proceeds
- 48 full and partial investment completions deliver a 2.6x multiple-on-invested-capital
- Corporate debt fully repaid using Fund 9 proceeds, enhancing financial flexibility
- Operational cost savings on track, with further reductions anticipated in FY26
Strong Financial Momentum in FY25
Omni Bridgeway Limited (ASX: OBL) has unveiled a compelling investment performance update for the three months ended 31 March 2025 and the financial year to date. The company is on course to achieve record proceeds, statutory gross profit, and cash generation for FY25, underscoring its leadership in the legal finance sector.
Total proceeds for the year to date stand at A$520.6 million, excluding the discontinued Income-Yet-To-Be-Recognised (IYTBR) metric. Of this, A$349.9 million is provisionally attributable to Omni Bridgeway, excluding management and performance fees. Notably, the Fund 9 transaction alone accounts for A$320 million of these proceeds, all attributable to OBL.
Fund 9 Transaction: A Strategic Milestone
Following the transaction, OBL simplified its statutory reporting by deconsolidating several funds, aligning financial disclosures more closely with its economic interests. This move enhances transparency and investor clarity regarding the company’s portfolio and financial health.
Robust Investment Completions and Pipeline
During the quarter, Omni Bridgeway recognised 12 full and partial investment completions, generating proceeds of A$28.1 million, with a multiple-on-invested-capital (MOIC) of 1.7x. Year to date, 48 completions have delivered an impressive 2.6x MOIC and a fair value conversion ratio of 110%, reflecting strong realised and unrealised returns.
The company’s investment portfolio remains vibrant, with A$374 million in new fair value added from A$369 million of new commitments. A strong pipeline is evident, with agreed term sheets outstanding for approximately A$198 million in potential new commitments. While the third quarter saw a slower pace in new commitments, attributable to seasonal factors and Fund 9 transaction activities, a rebound is anticipated in the final quarter of FY25.
Operational Efficiency and Leadership
Omni Bridgeway is on track to meet its FY25 operating expense target of A$85 million, with additional cost-saving initiatives expected to reduce annualised expenses by a further A$10 million in FY26. This disciplined approach to cost management complements the company’s growth trajectory.
Leadership continuity and expertise have been bolstered with the appointment of Greg Crowe as Head of Capital Formation, succeeding Guillaume Leger. Crowe brings 15 years of investment management and capital formation experience and has already made significant strides in securing new investors for the company’s funds.
Market Volatility as an Opportunity
Amid ongoing global financial market volatility and trade disruptions, Omni Bridgeway’s geographically diversified portfolio of non-correlated, self-liquidating legal assets stands out as particularly resilient. The company anticipates that increased disputes arising from economic displacements will create further attractive investment opportunities, reinforcing its strategic positioning in the legal finance market.
With cash and receivables of approximately A$196.4 million at quarter-end, equivalent to about 50% of its market capitalisation, Omni Bridgeway is well-positioned to capitalise on emerging opportunities while maintaining operational flexibility.
Bottom Line?
Omni Bridgeway’s record FY25 performance and strategic Fund 9 deal set the stage for sustained growth amid market uncertainty.
Questions in the middle?
- How will the anticipated settlements and court approvals impact cash flow and earnings in FY25 and beyond?
- What is the outlook for new commitments in 4Q25 given the slower activity in 3Q25?
- How might ongoing global trade disruptions influence the volume and nature of legal finance opportunities for OBL?