Omni Bridgeway (OBL) H2 2024 earnings summary

Executive summary

• Achieved net profit after tax and before NCI of $30.5 million, up $29.6 million year-over-year, driven by improved investment performance and cost management.

• Portfolio fair value reached $2.8 billion at 30 June 2024, up 11% from 31 December 2023, with $1.04 billion attributable to OBL.

• Completed 77 full and partial investments, delivering a MOIC of 2.7x and an IRR of 53% on full completions.

• Strategic focus on capital-light fund management, improved disclosures, and cost efficiency.

• Total statutory income rose 76% year-over-year to $205.4 million, reflecting strong completions and higher management fees.

Financial highlights

• Investment income and fee revenue totaled $277 million, down 10% year-over-year, offset by a significant increase in income yet to be recognized to $140.9 million.

• Operating expenses reduced by 8% to $89.7 million, below the $95 million target, supporting improved profitability.

• Employee expenses dropped 14% to $63.3 million; management fees rose to $25 million, and performance fees tripled to $9.9 million.

• Cash and receivables at year-end stood at $121 million, providing over three years of runway at current outflow rates.

• Cash opex coverage ratio improved to 28%, up from 17% in FY23, with a long-term target of 70%.

Outlook and guidance

• Targeting $700 million in new fair value commitments and a maximum cash OpEx of $85 million for FY25.

• Aims to increase fee income to $30 million and further improve cost coverage ratio.

• Long-term cost coverage target of 70% by FY28, with a near-term goal of 35% in FY25.

• Focus on accelerating fair value validation through completions and secondary capital market transactions.

• Plans for a second close from new LP investors in Funds four and five Series II and preparation for further fund launches.