1H23 Results
Highlights
Financial results
Portfolio performance
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Annexure
19
1H23 RESULTS | 23 FEBRUARY 2023
OMNI
BRIDGEWAY
Provisional attribution from estimated future completions of current portfolio
Assumptions and notes
Refer to slide 10
The attribution of implied embedded value (IEV) between OBL equity and non controlling
interests (NCI) has been prepared on the basis of the following underlying assumptions:
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All unconditionally funded investments in the Group's investment portfolio at the date
stated (Portfolio Investment(s)) complete in the selected Possible Completion Period
(PCP).
All Portfolio Investments are completed at their full estimated portfolio value (EPV).
The income received by the Omni Bridgeway funding entity upon the completion of a
Portfolio Investment reflects the long term conversion rate (LTCR) (which includes losses)
and hence equals the full implied embedded value (IEV) of an investment.
The residual capital to be deployed in Funds 2&3 is deployed in equal portions during
FY23 and FY24.
For Funds 4 and 5 the attribution is split solely in proportion to capital commitments.
For Fund 6 the attribution to OBL equity reflects the historic blended average proportion
of proceeds received by OBL equity (excluding performance fees).
FX rates are assumed to remain constant across the periods.
Performance fees in Funds 4, 5 and 6 have been excluded from the attribution and hence
any performance fees earned will see an IEV attribution shift from NCI to OBL equity.
The sensitivity analysis provided uses the following assumptions:
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IEV is adjusted to reflect variations in the income conversion rate from the LTCR of 15%.
The selected sensitivity rates are 10% and 20%.
EPV of material impaired investments excluded from EPV with commensurate flow-on to
IEV and attribution.
PCP on all Portfolio Investments is delayed by 12 months. Duration risk has traditionally
been addressed through a time based pricing escalator. Historically these capped out at a
certain level, leaving the Group exposed to further delays. We have sought to address the
risk by incorporating some additional IRR protection provisions. The 12 month delay
sensitivity does not incorporate the effects of these duration protections and assumes the
income is the IEV at whatever time it is received.
Management fee assumptions:
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The estimated management fees are based upon aggregated anticipated budgeted
investment deployment for Funds 4, 5 and 6.
Estimated portfolio value (EPV) assumptions:
EPV includes all Portfolio Investments, which includes, irrespective of impairment,
investments which have had a negative award or judgment but nonetheless the Group
believes have positive prospects of success on appeal.
At 31 December 2022 such investments included Westgem (EPV of $30m with PCP in
FY24) and a Fund 4 investment with PCP in FY24.
Conditionally funded and IC approved investments are not included in the EPV.
Possible completion period (PCP):
PCP is a dynamic concept and is subject to regular review and updating to take account of
the circumstances of the underlying investment.
It is to be expected that the PCP for some investments within the portfolio will be
adjusted at each reporting date.
PCP is not necessarily the same as anticipated IFRS income recognition period.View entire presentation