In 2017, we finalised the issuing of our first institutional bond through OMNIA Bonds II plc following our retail bond earlier in 2017. With 2018 comes the issuing of our second and third institutional bond – one denominated in USD and one in EUR both to be listed on the Frankfurt Stock Exchange - as our current seasoned USD bond. With the success of our first institutional bond, we now have the possibility of scaling our bond issuing with even bigger fine art collections to back it, and thereby creating an even greater pool of asset-backed bonds.
THE OMNIA STRUCTURE
OMNIA Bonds II plc, a UK-based fundraising vehicle sponsored by OMNIA Private Equity AG, issues bonds with an issue size of EUR/USD 250M to raise funds secured by fine art, one of the highest yielding asset classes over the last decade, owned and pledged by wealthy individuals, foundations, orders, charities or corporations.
Fully Asset-Backed, High Yield, Five Year Term
The funds are then lent to OMNIA Private Equity AG, which focuses on buy-outs in the SME market of European and American companies demonstrating earnings of EUR/USD 1-10m, yearly growth rates of more than 20%., no or little debt and high free cash flow.
DISRUPTING THE MARKET
Since the day OMNIA was born in 2009, it has been a clear ambition for us to change how investing is done. Our goal is to create more true value for both the market and entrepreneurs. Over and over again, we have experienced how Wall Street conservatism slows down creativity, development and entrepreneurial thinking. We believe that with our financial structure, we take part in starting to change the current system.
LEASONS LEARNED
It often comes as a surprise to people that we actually have been working on this structure for so long. But it definitely is not something that is built over night. It has required an amazing network of great people, and not to mention endless meetings with insurance companies, banks and asset managers –showing them that there are other things to invest in that properties. For us, 2017 has indeed been the year of proof of concept.