Omni Bridgeway Reports A$236M Proceeds and 2.9x MOIC in 1H25
Omni Bridgeway Limited reports strong investment proceeds and new commitments in the first half of FY25, alongside significant cost savings and the imminent financial close of Fund 9 with Ares Management.
- A$236.2 million investment proceeds in 1H25 with 2.9x MOIC on completions
- New commitments of A$297 million and A$319 million in fair value added
- Fund 9 launch with Ares Management acquiring 70%, sale proceeds estimated at A$310 million
- On track for FY25 operating expense target of A$85 million with additional A$10 million savings
- Strong pipeline with A$228 million in agreed term sheets and A$0.74 billion fair value potential completions
Strong Investment Performance in 1H25
Omni Bridgeway Limited (ASX: OBL) has delivered a robust set of investment performance metrics for the first half of the 2025 financial year, underscoring its position as a leader in legal finance. The company reported investment proceeds of A$236.2 million, with a multiple on invested capital (MOIC) of 2.9x across 24 full and partial completions in the December quarter alone. This performance reflects a combined fair value conversion ratio of 123%, indicating strong cash realisations relative to prior valuations.
Management and performance fees also contributed significantly, with A$12.4 million and A$9.7 million respectively received in 1H25, highlighting the ongoing revenue streams from the firm’s active portfolio management.
New Commitments and Pipeline Strength
The company secured A$297 million in new commitments during the half, spanning 30 new investments and expansions of existing positions. These commitments have already translated into a fair value uplift of A$319 million, putting Omni Bridgeway on track to meet its ambitious A$700 million target for the full year. The pipeline remains robust, with 36 agreed exclusive term sheets representing approximately A$228 million in potential new investments.
Fund 9 Launch and Strategic Capital Moves
A major corporate development is the launch of Fund 9, a continuation fund consolidating OBL’s co-investment interests in Funds 2 to 5. Ares Management has agreed to acquire a 70% stake in Fund 9, with OBL anticipating sale proceeds of around A$310 million. Regulatory approvals are in place, and financial close is expected imminently, with initial proceeds of A$275 million earmarked to repay debt and bolster liquidity. The final completion and true-up payment are scheduled for the end of March 2025.
Cost Efficiency and Operational Discipline
Omni Bridgeway is on track to meet or exceed its FY25 operating expense target of A$85 million. Additional cost-saving initiatives executed recently are expected to reduce annualised operating expenses by a further A$10 million, with full benefits anticipated to materialise during FY26. This disciplined approach to cost management complements the company’s growth trajectory and enhances its financial resilience.
Looking Ahead
With A$0.74 billion in fair value potential completions forecast over the next 12 months, Omni Bridgeway’s portfolio remains well positioned for continued cash flow generation. The company will provide further updates and strategic insights at its half-year results presentation scheduled for 27 February 2025, an event closely watched by investors eager to gauge the impact of Fund 9’s financial close and ongoing portfolio developments.
Bottom Line?
Omni Bridgeway’s strong half-year results and Fund 9 progress set the stage for a pivotal 2025.
Questions in the middle?
- How will the final true-up payment from Fund 9 affect OBL’s balance sheet and liquidity?
- What impact will the additional A$10 million in cost savings have on profitability in FY26?
- Can the company sustain its high MOIC and fair value conversion ratios amid evolving market conditions?
