Omni Bridgeway Ltd · ASX:OBL
Omni Bridgeway — IMF Bentham — Investor Presentation (December 2019)
32 slides from Omni Bridgeway's investor presentation, December 2019
Slide 1: Investor Presentation
Investor Presentation December 2019
Slide 2: Disclaimer
Disclaimer The material in this presentation has been prepared by IMF Bentham Limited (IMF) and is general background information about IMF's activities. The information is given in summary form and does not purport to be complete. A number of terms used in this presentation including; ROIC, EPV, su
Slide 3: Agenda
Agenda 1 2 3 4 5 6 INTRODUCTION WIVENHOE | WESTGEM COMMON FUND INTEGRATION THE FUTURE Q&A ORDERS 3
Slide 4: Agenda
Agenda 1 2 3 4 5 6 INTRODUCTION WIVENHOE | WESTGEM COMMON FUND INTEGRATION THE FUTURE Q&A ORDERS 4
Slide 5: Introduction
Introduction Key positive developments for organisation include: • Judgment in Wivenhoe Dam investment • High Court decision on Common Fund Orders • Refinancing of OTC Notes Continued integration of OB team • Recent completions of acquired book 5
Slide 6: Agenda
Agenda 1 2 3 4 5 6 INTRODUCTION WIVENHOE | WESTGEM COMMON FUND INTEGRATION THE FUTURE Q&A ORDERS 6
Slide 7: The big “W”
The big “W” Over the past several years we have managed two large investments in Wivenhoe and Westgem which represented both a material opportunity and a material risk given the size of the investments, the potential adverse cost exposure and the impact on profitability if these matters were won o
Slide 8: The big “W” (continued)
The big “W” (continued) IMF co-funded this investment with Innsworth on the basis that expenses and returns are shared equally and that IMF is to be paid a fee, such that, in effect, the commission is split 57.5% to IMF and 42.5% to Innsworth. In addition to external costs, given the length of t
Slide 9: The other “W”
The other “W” The Westgem proceedings were issued in 2012. The trial on liability commenced in early April 2018 and continued through to the end of June 2018. Judgment is expected momentarily. If IMF’s client succeeds at trial, there is a risk that the defendants will appeal a decision. If IMF’s
Slide 10: Agenda
Agenda 1 2 3 4 5 6 INTRODUCTION WIVENHOE | WESTGEM COMMON FUND INTEGRATION THE FUTURE Q&A ORDERS 10
Slide 11: Common Fund Orders
Common Fund Orders The High Court handed down its decision on 4 December 2019 in what was known as the Westpac and BMW CFO appeals. The High Court by majority allowed the appeals, which effectively overruled the Appeals Court and the Court of first instance decisions to allow CFOs. The media rep
Slide 12: Common Fund Orders (continued)
Common Fund Orders (continued) IMF is uniquely positioned in the funding world with its internal infrastructure for book-building, to undertake class actions under the “opt in” model following the High Court decision. IMF will continue to explore class action opportunities on a closed class basi
Slide 13: Agenda
Agenda 1 2 3 4 5 6 INTRODUCTION WIVENHOE | WESTGEM COMMON FUND INTEGRATION THE FUTURE Q&A ORDERS 13
Slide 14: The combined IMF/Omni Bridgeway Group
The combined IMF/Omni Bridgeway Group Global leader in dispute resolution finance, financing Combined team of legal and recovery experts disputes from inception through trial, appeal, enforcement and recovery Seasoned litigators, enforcement lawyers, economists, financial experts, business Fundi
Slide 15: Our position in the market
Our position in the market IMF Bentham / Omni Bridgeway Burford Capital Harbour Litigation Funding Therium Capital Management London Amsterdam New York Los Angeles Hong Kong Singapore Sydney Melbourne Litigation IMF Bentham + Burford Therium Harbour Longford Parabellum Augusta Woodsford Capital Omni
Slide 16: The combined IMF/Omni Bridgeway Group
The combined IMF/Omni Bridgeway Group Australia, USA, Canada, Asia, UK, Increased jurisdictional coverage Continental Europe, Middle East and Africa Countries 10 Offices 18 Investments 400+ EPV + Claims under management1 A$9.5 billion + €2.5 billion Team 148 Funds management 7 funds (~A$2.2 billion)
Slide 17: Global team
Global team IMF Bentham and Omni Bridgeway UK total: 4 (3 IM, 1 support) Continental Europe total: 40 Canada total: 9 (24 IM, 16 support) (7 IM, 2 support) 148 USA total: 23 Asia total: 7 (17 IM, 6 support) Middle East total: 4 (6 IM, 1 support) (3 IM, 1 support) Australia total: 61 (13 IM, 48 suppo
Slide 18: Omni Bridgeway’s track record
Omni Bridgeway’s track record Expertise and experience Founded in 1986 Un-matched experience in recoveries from (sovereign and quasi sovereign) debtors, developed in the 1990´s by funding and managing the recovery of political risk claims from the Lloyds of London insurance market >90% success r
Slide 19: Omni Bridgeway’s track record
Omni Bridgeway’s track record (as at 30 September 2019) Portfolio IRR Indicators (recovery and merits funding, incl. internal costs) 155% 141% 138% Multiple (closed cases) 4.2 Tenor Weighted 4.2 2.1 (median - years) average Life (years) All closed All closed in last All closed in last and 10 years a
Slide 20: Overview of Omni Bridgeway
Overview of Omni Bridgeway Omni Bridgeway is a leading provider of funding and specialized skills for litigation / arbitration and enforcement proceedings, and for the work-out and monetization of claims and non-performing loans Leading funder of litigation, arbitration and enforcement OVERVIEW pr
Slide 21: Omni Bridgeway
Omni Bridgeway Target regions Strategy and focus Focus on funding and management of enforcement claims on a success-fee-only basis Focus on civil law litigation funding Europe Expand product portfolio to reduce idiosyncratic risks by including moving into anti-trust group claims Remain globa
Slide 22: Roland ProzessFinanz
Roland ProzessFinanz Geographic presence Strategy and focus One of the two market leaders in Germany for domestic litigation funding Primarily active in funding mid-sized claims (EUR 250k – 90% EUR 5 million) Well diversified portfolio in excess of 200 cases with a total Germany Switzerland pr
Slide 23: Distressed Asset Recovery Program (DARP) – WorldBank / IFC
Distressed Asset Recovery Program (DARP) – WorldBank / IFC Geographic presence Services Distressed Assets Recovery Program (DARP) is a joint venture project with the WorldBank / International Finance Corporation To assist banks with the funding and international legal work-out of non-performing
Slide 24: Fund structures
Fund structures Funds 6 and 7 Description Fund 1 Funds 2 & 3 Fund 4 Fund 5 (incl DARP JV) Fund size US$167M A$180M US$500M US$500M €195M IMF / Omni 25% 20% 20% 20% 5% contribution Market USA ROW USA ROW EMEA Type European whole of fund European whole of fund American deal by deal American deal by de
Slide 25: Funds under management
Funds under management The objectives of increasing FUM and cases include the diversification of risk, and to provide access to management fee and performance fee income. Funding is sourced from seven funds, three of which are active for new investments each with different economics and returns.
Slide 26: Agenda
Agenda 1 2 3 4 5 6 INTRODUCTION WIVENHOE | WESTGEM COMMON FUND INTEGRATION THE FUTURE Q&A ORDERS 26
Slide 27: Developments since July 2019
Developments since 1 July 2019 Corporate funding Largest investment in our history Completions Merger with Omni Bridgeway Over 30% of portfolio US$40 million working Numerous conditional and Final element of five-year financing claims for capital investment for a unconditional completions st
Slide 28: Restructure of OTC Debt
Restructure of OTC Debt IMF is in the process of completing the restructuring of its OTC Debt. The original maturity date for the OTC debt was 30 June 2020 and priced at 7.4%. We have completed a consent process to enable an early redemption of the OTC Debt which was supported by 83% of notehold
Slide 29: The future
The future Integration Operations | Rebrand | Multinational decision making Strategy Business plan | Human resources Footprint Team growth | Jurisdictional expansion where appropriate Technology Artificial Intelligence Growth opportunities Corporates | Strong pipelines | Global coordination Debt man
Slide 30: Agenda
Agenda 1 2 3 4 5 6 INTRODUCTION WIVENHOE | WESTGEM COMMON FUND INTEGRATION THE FUTURE Q&A ORDERS 30
Slide 31: Notes to investment portfolio (at September 2019)
Notes to investment portfolio (at 30 September 2019) Investments Included in Portfolio Possible Completion Periods The Investment Portfolio includes investments for which the IMF Group have entered into an The possible completion period is IMF’s current estimate of the period in which an investment
Slide 32: Contact offices
AUSTRALIA ASIA CANADA EUROPE, MIDDLE EAST & AFRICA UNITED STATES OF AMERICA Sydney Brisbane Singapore Toronto London Geneva Dubai New York San Francisco +61 2 8223 3567 +61 7 3108 1311 +65 6622 5396 +1 416 583 5720 +44 203 968 6061 +41 (0) 22 818 6300 +971 4321 0029 +1 212 488 5331 +1 415 231 0363 L