Omni Partners LLP, an alternatives investment manager, has their first close on their second secured lending fund, Omni Secured Lending Fund II LP (OSL II), with initial commitments of $45 million. OSL II is targeting a total fundraise of $250 million by the time it holds its final close later this year. The launch and initial close of the second vintage fund follows the success of Omni Secured Lending I LP (OSL I), which the company states delivered a 10.4% net return during its first 12 months of trading.
“This second secured lending fund is the direct result of continued demand from investors for an unlevered high yield strategy that has the key characteristics of superior asset quality and short tenor. There are few niches of senior secured lending that provide a net yield in the double digits. The successful track record of Omni’s short-term secured lending strategy, combined with the institutional infrastructure put in place at Omni Partners over the last ten years, has proved attractive to institutional investors looking for risk-adjusted absolute returns. Given the success in the first round of capital raising, we anticipate closing the fund to new capital ahead of the 12-month timeframe that we had originally planned,” said Omni’s Founder and Head of Risk, Steve Clark.
OSL I, which launched in February 2014, providing direct exposure to short-term whole loans secured against UK residential and commercial properties. As with OSL I, OSL II will enforce strict lending requirements, included a maximum Loan-to-Value (LTV) of 70%.
According to Omni, key to the operation of the strategy is Amicus Finance Plc, which serves as the fund’s origination platform and is responsible for the entire front-to-back loan process. Amicus was founded in 2009 with seeding from Steve Clark, founder of Omni, and subsequently integrated into Omni (as a subsidiary) in November 2013. The existing senior management team at Amicus collectively has over 100 years of experience in the property lending market.
Amicus has underwritten more than 750 short-term loans with an aggregate value of more than $450 million since its inception. The firm prices for risk whilst underwriting, rather than forcing borrowers into standardised products charging fixed rates. All loans are asset-backed, thus minimising potential losses. Over the past 6 years, Amicus has suffered aggregate loss of principal given default of less than 0.1%.