The purpose of this expansion is to scale our private equity investment activities while also providing a new cash flow offering to OMNIA MFO clients owning fine art. OMNIA Bonds plc will be issuing asset-backed bonds with fine art as the underlying asset. Both the bondholders and the art owners receive a quarterly cash flow coupon. OMNIA Bonds plc will use the proceeds to fund the investments of OMNIA Private Equity.
Never before has an art owner had the opportunity to earn a residual cash flow off the value of his or hers fine art without having to sell it. This is of course something that we are very excited about offering to our multi-family office clients. For years we have offered financing against fine art, but now it is possible to keep your art and start making cash flow off its value.
The model is not something we have come across before elsewhere in the world, but for us it is the best way to structure capital to our private equity investments as well. This model makes it possible for OMNIA to invest in companies in a lean, fast and flexible way, which is very different from conservative private equity funds.
The target area of OMNIA is companies in Europe, Asia, and the US within the SME market making EUR 1-10m in earnings. These companies are usually founder-owned, entrepreneurially and passionately run and focused on growth with the right partners rather than with the ones with the biggest cash offers. By having our funding model based only on bonds vs. equity, we can continue to be as flexible and non-interfered by our investors, and thereby, we end up being a lot more interesting to the owners of the best companies on the market.
Our experience tells us with crystal clear clarity that OMNIA is way ahead in relation to closing deals compared to the overall private equity fund market. With our scalable funding model, we are now able to handle more cases and work with more great companies than ever before, and by having more companies in our portfolio we can utilise the synergies between the companies and spread our risk even more.
OMNIA Bonds plc will be issuing bonds on a continuous basis in a speed that fits our deployment frequency and grow with our increasing resources of deployment. We are very excited about expanding our business in this direction and satisfying two different types of clients in a way that we believe is truly unique.