#Australia #Sydney #Ares Management #Omni Bridgeway #legal assets

Omni Bridgeway and Ares Management Complete Landmark Transaction

On April 15, 2025, Omni Bridgeway, a leading global alternative asset manager specializing in legal assets, along with funds managed by Ares Management Corporation, announced the successful completion of a significant strategic transaction. This landmark deal establishes the Omni Bridgeway Fund 9, marking a first-of-its-kind continuation fund within the legal finance sector and valued at approximately A$320 million.

Background of the Transaction

Omni Bridgeway Fund 9 has successfully acquired Omni Bridgeway's co-investment interest in a diverse portfolio comprising over 150 legal assets. This strategic move not only reflects a robust investment strategy but showcases the value inherent in Omni Bridgeway's renowned institutional-grade asset management platform.

According to reports, Ares Management has purchased a 70% stake in Omni Bridgeway Fund 9 for about A$320 million in cash. Impressive financial returns have already been observed, yielding a day-1 cash multiple on invested capital greater than three times for Omni Bridgeway. This transaction is noted as one of the largest secondary market deals in the legal finance industry, both in terms of size and complexity.

Impacts and Benefits

The ramifications of this transaction are extensive. The proceeds have been instrumental in achieving a complete deleveraging of Omni Bridgeway's balance sheet while simultaneously providing substantial working capital. Furthermore, Ares Management's involvement extends beyond the initial investment. They have acquired equity interests through warrants, reinforcing their stake in Omni Bridgeway, a prominent ASX listed entity.

The current volatility in capital markets has led to a heightened interest from institutional investors in legal assets. These assets are recognized for their appealing, asymmetrical, and uncorrelated return profiles, which stand in contrast to traditional investment ventures. Ares Management's selection of Omni Bridgeway underlines the latter's global reach, impressive diversification, and historical performance track record in managing such specialized asset types.

Extensive Due Diligence

Prior to finalizing the deal, Ares conducted an exhaustive due diligence process, scrutinizing various facets of Omni Bridgeway's asset management practices, fair value methodologies, and the overall valuation of its extensive portfolio of legal assets. This rigorous validation process highlights the increasing importance of external market validation in today’s investment climate.

Jan-Paul Kobarg, Partner at Ares Management, expressed enthusiasm regarding the collaboration, stating, "We are pleased to support Omni Bridgeway with this substantial transaction which underscores Ares' ability to deliver bespoke capital solutions at scale. We look forward to working with Raymond and the Omni Bridgeway team as they build on their leadership in an asset class which we believe will be increasingly targeted by institutional investors due to its attractive, uncorrelated returns."

Looking Ahead

Raymond van Hulst, Chief Executive Officer of Omni Bridgeway, echoed this sentiment by emphasizing the innovative nature of the transaction. He stated, "We are proud to lead the field again with this innovative transaction, and we welcome Ares to our portfolio of blue-chip fund capital providers. It is the first continuation fund for legal assets and is highly significant in its scope and size as a secondary market transaction. It also showcases the value of Omni Bridgeway's institutional-grade asset management platform."

This pivotal transaction not only enhances liquidity but also mitigates duration risk associated with well-managed portfolios of legal assets, ultimately benefiting fund investors and shareholders alike. As they move forward, Omni Bridgeway is poised to reinvest in new investment-stage fund series, further diversifying and expanding their extensive portfolio.

About Omni Bridgeway

Established in 2001 and listed on the ASX, Omni Bridgeway has raised approximately A$3.5 billion across 11 funds. With over 35 years of experience in the sector, they have consistently delivered uncorrelated returns across various economic cycles. The organization employs a team of 175 professionals operating from over 20 locations globally.

For further updates on this transaction and Omni Bridgeway's offerings, visit Omni Bridgeway's website.

About Ares Management

Ares Management Corporation is a premier global alternative investment manager that offers clients diverse primary and secondary investment solutions spanning credit, real estate, private equity, and infrastructure asset classes. As of December 31, 2024, Ares Management managed over $525 billion in assets worldwide.

For additional details on Ares Management, please visit Ares Management's website.