Clifford Chance advises Ares on secondary market transaction with Omni Bridgeway, involving 150+ investments structured as a continuation fund

Clifford Chance advises Ares on secondary market transaction with Omni Bridgeway, involving 150+ investments structured as a continuation fund – a first for the legal finance industry

12 May 2025

Francis Edwards, Thomas Walsh, Lin Lu, Yvonne Shek, Sebastian Lehmann, Kin Kan Chan, Daryl Liu, Chin Seng Chew, Leland Hui, Nicholas Henneberry, Cameron Hassall, Naomi Griffin, David Clee, Elizabeth Hill, Chad Bochan, Romesh Weeramantry, Marcus Berghouse, Sunny Jong, Mathew Kambos, Conor Davis, Steve Nickelsburg, Alistair Dunlop (He/Him), Jefferey LeMaster, Daryl Fairbairn (He/Him), John Alexander, Claire Freeman, Murray Tabeart, Tracy Lau
Hong Kong, Singapore, Sydney, Perth, New York, Washington D.C., London

Clifford Chance advises Ares on secondary market transaction with Omni Bridgeway, involving 150+ investments structured as a continuation fund – a first for the legal finance industry

Global law firm Clifford Chance has advised funds managed by Ares Management Corporation (Ares), a leading global alternative investment manager, in connection with its A$320 million investment in a portfolio of litigation funding assets originated and managed by ASX-listed Omni Bridgeway Limited (OBL), one of the largest litigation funders in the world, with operations globally, including Asia Pacific, Europe and the US. The transaction is the first continuation fund – and one of the largest secondary market transactions in both scope and size – in the legal finance industry.

The secondary market transaction features an innovative structure for the asset class, involving Ares acquiring a 70% interest in a new continuation fund (Omni Bridgeway Fund 9), which allows Ares to invest in a diverse portfolio of litigation funding assets across Asia Pacific, Europe and the US. The transaction involves the acquisition by Fund 9 of OBL's co-investment in 150+ investments made by earlier funds established by OBL (Funds 2/3, Funds 4/5 Series 1) and one remaining balance sheet investment. Ares will receive a preferred return on its 70% interest in Fund 9, while OBL will retain further profit rights on the whole portfolio by retaining a 30% interest in Fund 9.

In addition to the investment in Omni Bridgeway Fund 9, Ares has taken an equity interest through warrants in OBL as an ASX listed global fund manager for legal assets.

This complexity required close collaboration between Clifford Chance's team of structured finance, funds, corporate and disputes lawyers. As part of the transaction, the firm's international disputes team also advised on a complex and multi-jurisdictional litigation due diligence process spanning Asia Pacific, Europe and the US.

Lead partner Francis Edwards said, "This transaction underscores the increasing sophistication and maturity of the litigation finance market, reflecting growing investor interest in this burgeoning asset class. The innovative structure provides liquidity to OBL while enabling Ares to capitalise on the potential upside of ongoing and future litigation claims. We are grateful for the opportunity to advise Ares on this innovative transaction."

Cameron Hassall, Head of Litigation & Dispute Resolution, Asia Pacific, commented, "The global litigation funding market continues to experience impressive growth. We are delighted to have worked alongside Ares and with OBL in our review of this portfolio, leveraging our litigation funding experience and our expertise in managing litigation and arbitration throughout APAC, the US and Europe."

Clifford Chance's cross-practice and multi-jurisdictional team includes:

Hong Kong: Partners Francis Edwards and Thomas Walsh, counsel Lin Lu and Yvonne Shek, senior associate Sebastian Lehmann and associate Kin Kan Chan;
Singapore: Partners Daryl Liu and Chin Seng Chew, and senior associates Leland Hui and Nicholas Henneberry;
Australia (Sydney and Perth): Partners Cameron Hassall, Naomi Griffin, David Clee, Elizabeth Hill and Chad Bochan, special counsel Romesh Weeramantry, counsel Marcus Berghouse and Sunny Jong, and senior associates Mathew Kambos and Conor Davis;
The US (New York and Washington, DC): Partners Steve Nickelsburg, Alistair Dunlop and Jefferey LeMaster, and counsel Daryl Fairbairn and John Alexander;
London: Partner Claire Freeman and senior associate Murray Tabeart;
Legal project management: Tracy Lau (Hong Kong) and Pallavi Singh (Delhi).

This transaction builds on Clifford Chance's extensive global track record advising on innovative and complex transactions in the private capital sector.