GLS Capital purchases 25% interest in a portfolio of IP litigation finance investments from Omni Bridgeway

DECEMBER 11, 2023 – GLS Capital has completed the purchase of a 25% stake in a diversified portfolio of intellectual property litigation finance investments from Omni Bridgeway.  The portfolio contains $104.4 million in total commitments across 15 investments.

GLS Capital Managing Director Adam Gill commented, “GLS is pleased to partner with Omni Bridgeway in this transaction which accomplishes important strategic goals for both parties.  The transaction provides GLS with an attractive risk-reward proposition in a highly diversified and collateralized portfolio of litigation finance investments, curated and managed by an industry leader.  We look forward to our continued collaboration with Omni Bridgeway to maximize the value of this portfolio for our respective investors.”

Details of the transaction can be found in the official press release from Omni Bridgeway, some of which are below:

Omni Bridgeway Limited (Omni Bridgeway, OBL, Group) (ASX: OBL) announces that it has completed the sale of a 25% interest in a portfolio of 15 intellectual property (IP) investments (Investments) in Fund 4 (Fund) to an affiliate of GLS Capital Partners Fund II, LP (GLS) for an initial amount of US$21.5 million, representing a multiple on invested capital (MOIC) of 2.0x of the apportioned aggregated deployments to date.

GLS will receive a preferred return on its deployments alongside OBL, beyond which OBL retains further profit rights on the 25% interest.

The cash consideration is anticipated to be received within five business days.

The total committed capital of the Investments is US$104.4 million with total deployed capital of US$42.9 million. The future budgeted costs (committed but undeployed capital) of US$61.5 million will be split proportionately between the Fund and GLS.

The sale will be treated as a partial completion of each of the 15 Investments for our fund and performance reporting. The full estimated portfolio value (EPV) of the Investments, at 30 September 2023, was approximately A$3.3 billion, with the Fund’s remaining proportionate share being A$2.5 billion.

Raymond van Hulst, Managing Director and CEO, commented “The conclusion of this transaction with an expert litigation finance investor with strong IP capability demonstrates the continued growth and depth of the secondaries market as well as the intrinsic value of our portfolio. The thorough due diligence process undertaken affirms our belief in the value of the Investments.”

Adam Gill, Managing Director of GLS commented “GLS is pleased to partner with Omni Bridgeway in this transaction which accomplishes important strategic goals for both parties. The transaction provides GLS an attractive risk-reward proposition in a highly diversified and collateralized portfolio of litigation finance investments, curated and managed by an industry leader. We look forward to our continued collaboration with Omni Bridgeway to maximize the value of this portfolio for our respective investors.”

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