Ares Administration Corp has acquired a majority stake in a brand new fund launched by Australia-based litigation finance specialist Omni Bridgeway.
This represents Ares’ first foray into the litigation finance area, and adopted roughly six months of due diligence.
Beneath the phrases of the settlement, a brand new fund can be created which is able to embody greater than 150 Omni co-investments. Ares will take a 70 per cent stake within the fund for AUS$310m (£153.36m), with Omni retaining the remaining 30 per cent share of the fund.
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Omni Bridgeway is publicly listed on the Australian Inventory Trade and invests within the upfront prices of lawsuits. If the lawsuits are profitable, Omni shares within the returns.
Omni’s managing director and chief government Raymond van Hulst mentioned that the Ares deal will enable his firm to turn out to be debt free whereas accessing new sources of capital.
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“That is most likely the primary time there’s been a transaction of this scope,” van Hulst added.
“It’s one step additional for authorized property changing into a extra common and accepted asset class.”
Omni Bridgeway can be an adviser on the brand new fund with Ares, and it has the choice to accumulate an fairness stake of as much as AUS$35m by way of the issuance of warrants at an agreed strike worth.
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