Omni Bridgeway and Ares Management complete landmark secondary market transaction for legal assets, valued at A$320 million
Rhea-AI Summary
Ares Management (NYSE: ARES) and Omni Bridgeway have completed a major secondary market transaction through the establishment of Omni Bridgeway Fund 9. Ares acquired a 70% interest in the fund for A$320 million, which includes a portfolio of over 150 legal assets.
The landmark deal resulted in a day-1 cash multiple exceeding 3x for Omni Bridgeway and enabled the company to fully deleverage its balance sheet while securing significant working capital. As part of the transaction, Ares also received equity warrants in Omni Bridgeway.
This transaction represents the first continuation fund and one of the largest secondary market deals in the legal finance industry, highlighting growing institutional investor interest in legal assets due to their attractive, asymmetrical, and uncorrelated return profile. The deal involved extensive due diligence on Omni Bridgeway's asset management operations and fair value methodology.
Positive
- Secured A$320 million investment from Ares Management
- Achieved 3x day-1 cash multiple on invested capital
- Complete deleveraging of balance sheet
- Gained significant working capital
- External validation of fair value framework and portfolio
Negative
- Dilution of ownership with 70% fund interest transferred to Ares
- Additional potential dilution through equity warrants issued to Ares
News Market Reaction 1 Alert
On the day this news was published, ARES gained 2.12%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Ares has acquired a
Proceeds from the transaction have been used to fully deleverage Omni Bridgeway's balance sheet while delivering significant added working capital. In addition to the investment in Omni Bridgeway Fund 9, Ares has taken an equity interest through warrants in Omni Bridgeway as an ASX listed global fund manager for legal assets.
In the current volatile capital markets environment, the transaction highlights the increasing interest of institutional investors in legal assets given their attractive, asymmetrical and uncorrelated return profile.
The selection by Ares of Omni Bridgeway in this transaction, reflects the global scale, diversification, and long-term track record of Omni Bridgeway's portfolio and fund management platform for this specialized asset class. The transaction involved extensive due diligence by Ares and its legal and financial advisors on Omni Bridgeway's asset management operations, fair value methodology, and the resulting fair value for a significant part of the legal assets in its portfolio. The external market validation of its fair value framework and portfolio for legal assets was a core strategic objective for Omni Bridgeway.
"We are pleased to support Omni Bridgeway with this substantial transaction which underscores Ares' ability to deliver bespoke capital solutions at scale," said Jan-Paul Kobarg, Partner at Ares Management. "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."
"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," said Raymond van Hulst, Chief Executive Officer of Omni Bridgeway. "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. It demonstrates that deep pools of institutional secondary capital are available to increase liquidity and mitigate duration risk for good quality and well managed portfolios of legal assets. Our fund investors and shareholders will benefit from the increased liquidity, allowing us to reinvest in new investment-stage funds series that further diversify and grow our portfolio."
Additional details on the structure and terms of the transaction can be found here.
ABOUT OMNI BRIDGEWAY
Omni Bridgeway is a global alternative asset manager specializing in legal assets, with approximately
ABOUT ARES
Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, real estate, private equity and infrastructure asset classes. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of December 31, 2024, including the acquisition of GCP International which closed on March 1, 2025, Ares Management Corporation's global platform had over
CONTACT
Anna Bernardis | Director, Marketing and Business Development –
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SOURCE Omni Bridgeway
FAQ
What is the value of Ares Management's investment in Omni Bridgeway Fund 9?
How many legal assets are included in the Omni Bridgeway Fund 9 portfolio?
What return did Omni Bridgeway achieve from the ARES transaction?
How will the ARES investment impact Omni Bridgeway's balance sheet?
What additional benefits did ARES receive besides the fund investment?
