Settlement of Long-Standing Westgem Liability Clears Path Amid Uncertain Portfolio Outcomes
Omni Bridgeway reported a strong start to FY26 with A$136.6 million in cash investment proceeds and a robust pipeline of nearly A$318 million in potential new commitments. The company also settled a long-standing legal liability and is progressing well with fund capital raising.
- A$136.6 million cash investment proceeds in Q1 FY26
- 2.8x multiple on invested capital from 18 completions
- Robust pipeline with 30 exclusive term sheets worth A$317.8 million
- Settlement of Westgem adverse cost liability
- Funds 4/5 Series II capital raise on track for completion by end CY25
Strong Quarterly Performance
Omni Bridgeway Limited (ASX, OBL) has kicked off FY26 with a solid quarter, reporting A$136.6 million in cash investment proceeds for the three months ended 30 September 2025. This performance was driven by 18 full and partial investment completions, delivering an impressive 2.8x multiple on invested capital (MOIC) and a fair value conversion ratio of 102%. The results underscore the company’s ability to convert its legal finance investments into tangible returns efficiently.
Robust Pipeline and New Commitments
Beyond realised proceeds, Omni Bridgeway’s pipeline remains notably strong, with 30 agreed exclusive term sheets representing approximately A$317.8 million in potential new commitments. This pipeline strength signals continued deal flow and investment opportunities, which is critical in the legal finance sector where timing and deal quality can vary significantly. During the quarter, the company made new commitments totaling A$70.2 million across 11 new investments, aligning with typical seasonal patterns.
Portfolio Developments and Legal Settlements
The quarter also saw positive portfolio developments, including the settlement of the long-standing Westgem adverse cost liability. This liability, stemming from a nearly 15-year-old investment, was resolved slightly below the provisioned amount, with payments scheduled over FY26 and FY27. The resolution removes a significant overhang from the balance sheet and reflects prudent risk management. Additionally, several pending settlements and awards are progressing, with combined portfolio fair values in the hundreds of millions, though some outcomes remain uncertain until finalisation.
Operational and Financial Discipline
Operationally, Omni Bridgeway’s management fees for the quarter were A$8.6 million, while operating expenses tracked below the FY26 target of A$80 million, indicating disciplined cost control. The company’s cash and receivables position stood at A$150 million at quarter-end, consistent with expectations and providing a solid liquidity buffer to support ongoing investments and operations.
Capital Raising Momentum
On the fundraising front, the capital raise for Funds 4/5 Series II continues to progress well, with several new and additional investor commitments secured during the quarter. The fundraise remains on track for completion by the end of calendar year 2025, supported by both hard and soft commitments and advanced due diligence. This momentum is crucial for sustaining Omni Bridgeway’s growth and investment capacity in a consolidating industry landscape.
Bottom Line?
With a strong quarter behind it and a healthy pipeline ahead, Omni Bridgeway is well positioned, but investors will watch closely how pending settlements and fundraises unfold.
Questions in the middle?
- How will the pending settlements and awards impact future cash flows and returns?
- What is the outlook for Fund 9 deployments given the Fund 4/5 Series II capital raise progress?
- How might industry consolidation affect Omni Bridgeway’s competitive positioning and pricing power?
