Launch day of OMNIA Bonds II, Series 2

It is with great excitement that we officially launch our second institutional bond – the Series 2 Euro Bond, which is being listed on Berlin Stock Exchange and Frankfurt Stock Exchange through OMNIA Bonds II plc.

OMNIA Bonds II plc issues bonds with an issue size of EUR 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.

THE OMNIA STRUCTURE

We have created an opportunity for investors to enjoy a highly competitive and fixed rate of return. Our five-year, asset-backed Bond pays 6.5% gross interest per annum over five years, paid semi-annually, with a minimum investment of EUR 100,000 and the investors’ capital returned in full on maturity in 2023.

Our Bond creates an opportunity for investors to follow the journey of successful, fast-moving companies without participating in the risk of their future. We are excited about expanding our business and having found a way of satisfying the needs of our prospective bondholders in a way that we believe is truly unique in the current market.

ASSET-BACKED BONDS

High net worth investors tend to have much of their capital tied up in passion investments, such as art, classic cars, diamonds or wine, and while many of these investments have been made for reasons of passion, investors do hope for some capital appreciation over time. And there wishes have been heard; over the last ten years, classic cars have yielded 490% and fine art has yielded 226% according to the Knight Frank Luxury Investment Index.

According to the Financial Times, approximately 80% of the world’s art is in storage – just waiting to be securitised and to provide the art owners with a cash flow based on the valuation of the artworks without having to sell them. It is important to emphasise that most art owners are not interested in selling their artwork – although the artwork has been bought with investment in mind, almost 90% of the buyers have a collecting purpose. 

For OMNIA to supply the market with a bond of security and yield, we must secure our investors’ capital with those asset classes that have yielded the most. Compared to real estate, fine art (top 500 artists) have yielded 61% in just five years, and growth-based private equity is currently the best performing ordinary asset class on the market.

SERIES II

For the Series II Bond, we are proud to announce that the presold part during our soft booking phase is asset-backed and secured by an impressive collection by Auguste Rodin (1840-1917), the remarkable French sculptor, known for, among others, “The Thinker” – one of the most recognised and famous sculptures in the world. As we enter the subscription phase today, we will continue to secure ongoing sales of bond tickets with more artworks of top 300 artists of high value. Thereby, we are always securing our bond with a minimum of 125% asset-backing.

OMNIA IS NOT AN ART FUND

With our structure, fine art owners receive an income stream based on the value of their assets, the bond market receives a safe bond secured against high value artworks of OMNIA Bonds II plc, and OMNIA receives funds for private equity investments.

This means that OMNIA is not a traditional art fund, as we do not invest in art – we are a privately held private equity firm securitising fine art to underpin our bond offerings and fund our private equity investments, which secure the art owners and provide them with an income stream from the investments made.

For us, art functions as backup for our private equity investments, and for the art owner there is an entirely unleveraged private equity portfolio protecting the art.

INVESTING IN PROFITABLE SMES

The funds raised through our bond offering are lent to OMNIA, which focuses on the European and American SME (small and medium-sized enterprises) market. We invest in profitable (EUR 1-10m of EBITDA) businesses demonstrating annual growth of 20% or more, which are run by founders and a management team with successful track records. 

We strive to build a portfolio of companies with great synergic effect among them. The bigger the portfolio, the greater the toolbox for our portfolio companies; a portfolio of best of breed entrepreneurs and minds roaming the entrepreneurial space.

CREATING VALUE FOR ENTREPRENEURS

The SME founders that we meet are often entrepreneurs to the bone, whose companies are their lifeblood. They are not looking for a traditional private equity investor who will take over their company and run it on their terms. What they are looking for is an equal partner who will take them to the next level.

We also know that one of the reasons that entrepreneurs build their own businesses is that they thrive with the freedom of having their own – rather than being forced to sit at a desk from 9-5. Therefore, they are also looking for an investor with this element of freedom in mind, but they do not find this with traditional private equity funds. This is also the reason why most of these companies are not for sale when we meet the founders, but with the value add and interest in our joint journey to take the companies to the next level that usually changes.

At OMNIA, we confident that we are able to offer our entrepreneurial founders the exact investor they have been looking – who matches their mindset and who is able to create value for their company without taking it out of their hands.

BY POPULAR DEMAND

Since we launched our first institutional bond in 2017 with great success, we have experienced even greater demand for launching our Euro Bond. With the incredible Rodin collection at hand, we are able to scale our bond issuing, and thereby offer bond holders a high yield of 6.5% and low risk. The first tickets have already been sold during our soft booking phase.

LEARN MORE

To request Information Memorandum please send an email to im@omniabondsii.com

For orders, instruct your broker (if applicable) and initiate the process by e-mailing dealing@omniabondsii.com and refer to ISIN: GB00BFM7CV87

BOND SECURITY DETAILS

ISIN: GB00BFM7CV87
Coupon: 6.50%
Currency: EUR
Asset backing: Min. 125%
Issuer: OMNIA Bonds II plc
Sponsor: OMNIA Private Equity AG
Status: Senior, direct, secured, unconditional Obligation of the Issuer
Arranger: Bedford Row Capital Advisers Limited
Security Trustee: GRM Law Trustees Limited
Distribution: Semi-annual
Term: Five-year (2023)
Listing: Berlin Stock Exchange and Frankfurt Stock Exchange
Rating: N/A
Issue size: 250m
Start date: 3 May 2018

The opposite world

FOR THE ENTREPRENEURS BY THE ENTREPRENEURS

So, why do deal sourcing comes rather easy to us? We truly believe that it is a matter of mindset. The SME (small and medium-sized enterprises) founders that we meet are often entrepreneurs to the bone, whose companies are their lifeblood. They are not looking for a traditional PE investor who will take over their company and run it on their terms. What they are looking for is an equal partner who will take them to the next level.

We also know that one of the reasons that entrepreneurs build their own businesses is that they thrive with the freedom of having their own – rather than being forced to sit at a desk from 9-5. Therefore, they are also looking for an investor with this element of freedom in mind. But they do not find this with traditional private equity funds.

“Now more than ever, deal origination is where value creation begins.”
EY Global PE Watch, 2018

At OMNIA, we have been on our own entrepreneurial journey for more than 20 years, and therefore, we do understand the minds of the entrepreneurs – the battles they fight, often with banks, and the conflicts that often happens with investors trying to take over control of the founder’s company.

We understand that the people we speak with are entrepreneurs, and that they want to keep their company and continue to run it, but as the owner of an SME they would also like to have the same possibilities that bigger companies enjoy in order to expand the company or maybe cash in a little to have some more freedom or to improve their lifestyle.

As stated in Ernst & Young’s “EY Global PE Watch 2018”: “(…) Leveraging core competencies, such as those unique skills or value-added services that differentiate a firm from its competitors, whether it’s sector expertise, a global reach, partnership opportunities or specific value-creation skills” is absolutely key to optimise deal sourcing.

INVESTING IN NETWORK, TRUST AND FIERY SOULS

OMNIA invests in profitable SMEs rather than companies with no revenue and high valuations. We invest in profitable (USD/EUR 1-10 million of EBITDA) businesses demonstrating annual growth of 20% or more, which are run by founders and a management team with successful track records.

“Medium-sized enterprises (SMEs) and entrepreneurs have emerged as a driving force for more inclusive and prosperous societies.”
OECD, 2017

Not the least, we invest in people – like-minded and hardworking people who want to do better, and who want to make a significant difference and impact on the world. We invest in entrepreneurial companies with founders who are looking to take their company to the next level, but who do not want to compromise their control of the company.

THE PRIVATE EQUITY MARKET

Private equity funds investing in the SME market are the ones with the highest return, and according to Bain and Company’s Global Private Equity Report 2016, smaller middle-market deals are available at more reasonable purchase prices.

Ten years ahead of the beginning of the financial crisis, SMEs have managed to bring in profits and have the highest growth rates among SMEs, mid-cap and large cap companies, which means that most SMEs are run by hard-working, passionate people who are great at making money despite poor credit facilities. According to the World Bank, more than 50% of SMEs lack access to finance.

“The MSCI Europe Small Cap Index is up about 24 percent this year through Nov. 13, outpacing the 18 percent gain by the MSCI Europe Index. T. Rowe Price’s European Smaller Companies Equity Fund returned 34.6 percent during the period, while Henderson’s European Smaller Companies Fund gained 32.5 percent, (…).”
Bloomberg.com, 2017

THE OMNIA WAY

The lack of finance for SMEs creates a golden opportunity to provide entrepreneurial SMEs with an alternative to traditional financing. Generally, investing in SME’s provide PE funds with a solid return, however, many private equity funds are only looking for big deals rather than several smaller ones.

“When seeking bank credit, SMEs continue to face more stringent financing conditions and higher interest rates compared to large businesses, and find themselves even more at a disadvantage when attracting alternative sources of finance.”
OECD, 2017

At OMNIA, our hearts beat for SMEs. We bring all the SMEs together in a portfolio that will be listed under a diversified investment holding company. Being part of our listed company changes little about the way the founders run their businesses, as their companies themselves are not listed. But they do become part of an accumulated listed balance sheet with all the advantages that comes with it. 

“Since 2012, we have seen a resurgence of IPOs backed by private equity (PE) with over 60% of total UK IPO proceeds being raised from PE-backed investments.”
British Private Equity & Venture Capital Association, 2016

First and foremost, a company becomes worth a lot more by being part of a listed company as there are huge differences between public and private valuations. Europe is currently valuating privately held companies within the SME space to a P/E of around three to six and publicly listed companies to a P/E of an average of 25. In 2016, publicly listed SMEs grew 6-800% in value in one year.

THAT FINE LINE

Unlike traditional investment funds, we do not perform a 100% buyout, then list the founders’ companies and take all the profits. We want our clients to be part of the listing and to take part in the upside and value increase of their company.

Generally, we do not believe in buyouts – as the company owner we know that entrepreneurial founders are not interested in letting go of the company that they most likely spent years on building, and as entrepreneurs they most likely do not find happiness in sitting with their hands in their pockets starring at the wall – they want to continue building their businesses.

We want to provide our entrepreneurial friends with the tools for them to be able to capitalise on their success and to continue to run their businesses while caring about their focus on freedom, quality of life and their never-ending reach for the next level. Just like we do ourselves.

Is fine art the safest collateral for securitisation?

Furthermore, with an expected 41% increase in UHNWI by 2025, the demand for passion investments will continue to rise, and the collateral will then most likely continue to increase in value.

OMNIA IS NOT AN ART FUND

At OMNIA, we have structured a platform where fine art owners receive an income stream based on the value of their assets, the bond market receives a safe bond secured against high value artworks of OMNIA Bonds II plc, and OMNIA receives funds for private equity investments through OMNIA Private Equity AG.

This means that OMNIA is not a traditional art fund, as we do not invest in art – we are a privately held private equity firm securitising fine art to underpin our bond offerings and fund our private equity investments, which secure the art owners and provide them with an income stream from the investments made.

Although art funds have struggled to gain a proper foothold among investors, few new art investment products are being developed to address many of the shortfalls associated with art investment fund, (…).
– Deloitte, Art & Finance Report, 2017

Traditional art funds have long existed, in different forms since the 1970s – but generally with limited success. Likely, because you have Wall Street type of business men trying to be art experts and turning a hedge fund into a sophisticated art fund.

There are of course some big art funds that generate a solid return for their investors, such as The Fine Art Fund Group, which has produced an average return of 9% before fees.

Instead of OMNIA trying to be art collectors and art investors, we believe that we should leave that to the actual art collectors who have made the right bets. Then, we can focus on generating cash flows and profits through our private equity investments by not having any leverage on our portfolio. In return, we offer the market the combination of the best collateral available and the highest cash flow investments.

A RECORD-BREAKING SALE

For more than 20 years, artworks have been sold at auction houses, such as Sotheby’s and Christie’s, within 15% of the valuation and skewed in an upward direction according to registered auction history. Thereby, fine art has proved to be a stable asset class, which makes securitisation of art better than securitisation of properties in many cases.

Recently, we saw a rather extreme but great example of this, when the art world was stunned, as Leonardo da Vinci’s portrait of Christ, “Salvator Mundi”, was sold for a record-smashing USD 450.3 million, which is more than double the old price for any work of art at an auction. It is worth noting that the auction house Christie’s’ pre-sale estimate was of about USD 100 million.

Actually, the painting was sold in 2005 for USD 10.000 before being authenticated and later, in 2013, first sold for USD 79 million and later same year for USD 127.5 million.

INCREASE VALUE WITH THE RIGHT VALIDATION PARTNER

Just as no one in the art world failed to notice this remarkable sale, we also paid extra attention at OMNIA, as it was our authentication partner, Analysis & Research (AA&R), which did the forensic work on the “Salvator Mundi”.

AA&R offers technical investigations of paintings through their fully equipped and state-of-the-art laboratory, and they have decades of combined experience working with paintings from the medieval to the mid-twentieth century, European Old Masters to the Russian Avant-Garde and American abstract art.

ART AS AN INVESTMENT

Art is becoming an important component of many high net worth individual investment portfolios, and according to Deloitte, 88% of wealth managers report that they intend to cover art in their portfolios.

“(…) art and collectible assets are worthwhile as a means to safeguard value.”
– Deloitte, Art & Finance Report, 2017

With low yields and limited investment options available, art and collectibles are one of the alternative assets that are increasingly considered a store of value – a motivation that remains significant among collectors and art professionals. 

LOW RISK ART INVESTMENT

Generally, there is a high risk associated with being a traditional art investment fund where all bets are on a 20% value increase on a specific work of art or art collection.

At OMNIA, we do things differently. We do not place our bets on a yearly 20% increase in value on a certain piece of art over the next five years. We are in a position where we can handpick masterpieces, that are both liquid and stabile. We then use them as asset-backing for our low risk private equity investments, where we have chosen the art specifically for our bonds.

“Art lending allows art collectors and gallerists to realize liquidity without having to make unfavourable sales to satisfy short-term cash flow concerns”.
– Deloitte, Art & Finance Report, 2017

For us, art functions as backup for our private equity investments, and for the art owner there is an entire unleveraged private equity portfolio protecting the art.

ART VS REAL ESTATE 

It is interesting to compare art as an investment with that of real estate, which is often mentioned as one of the safest investments. Numbers from 2015 shows the average 20-year returns in commercial real estate is 9.5%, residential and diversified real estate investments is 10.6% and real estate investment trusts (REITS) average annual return is of 11.8%.

“I’m amazed that there is 2,5 trillion dollars of unleveraged art when it’s safer than real estate”.
– Daniel Hansen, Founder of OMNIA

However, artworks sold for over USD 10 million have generated a 27% compound annual growth rate, or a 1,000+% return over ten years.

From a rating and securitisation perspective, the lower the loan-to-value, the lower volatility and quicker sale without the need for fire sale, the better the collateral. Within all those terms, fine art might be a better match than real estate, which currently enjoys top rating. Maybe we will see this change in the near future.

MAKING ART INVESTMENTS EVEN SAFER

Although art per definition has an element of subjectivity to it, and we once in a while see spectacular sales, art as an investment is much less volatile than one might think. As mentioned earlier, we see that appraisers generally get remarkably close to the final auction price.

There is a great amount of data collection that is accessible on art – today, you can retrieve just as much data on art as you can on real estate. We see the yearly Art & Finance Report from Deloitte, and a company like Pi-eX, which has built a proprietary database of auction sales results and developed a systematic methodology for analysing liquidity, performance, volatility and volatility hedges. Pi-eX strives to provide valuable market-focused information to art collectors and investors to better understand liquidity, performance and volatility in the fine art market.

“Thanks to the annual regularity of public auction sales, one can systematically analyze year after year what collectors like to buy or sell, where they prefer to do so, how their tastes evolve, what their critical price points are, which artists they are confident in or not, etc.”
– Christine Bourron, CEO, Pi-eX, Deloitte’s Art & Finance Report 2017

Another interesting aspect providing further security for art investments is the possibility of financial products like futures auction sales (CFS derivate), where art sellers hedge part of the risk by letting investors take a speculative short-term position in the fine art market, and auction guarantees, where the financial market and not the auction house takes the risk. This is possible due to the before-mentioned great amount of auction data available to the market.

THE OMNIA STRUCTURE

If we, for whatever reason, are unable to get a guarantee on a certain art work, we are in the luxurious situation of being able to simply just find another piece of art. This means that we have the possibility of setting up our art portfolio in the exact way that works best as collateral for our structure.

As we are able to combine art as collateral with cash flow and return coming from OMNIA Private Equity, we have a much different view on art as an asset class than traditional art funds.

Launching OMNIA Bonds Series II & III

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.

How to be part of an innovative process

PRACTICE MAKES PERFEKT

People often make the mistake of thinking some people are just naturally innovative. But I firmly believe that being a great innovator is a skill, not simply a natural talent – which means it can be strengthened through practice. So open your mind to new ways of thinking everyday, challenge yourself and those around you, and exercise that creative muscle. Your business will be fitter for it.

GET A GREAT TEAM AROUND YOU

I have a truly inspiring group of people here – but they’re not all the same. I have talkers, I have quiet thinkers, I have fiery souls and I have collaborators – but they all have a part to play. No successful innovator can do it alone – so surround yourself with the best – people who can challenge you and make you think in new ways – and bring them together. Make sure they bump into each other accidently every day, and get them to spark – this could start the fire that transforms your business.

BE PREPARED TO LEARN SOMETHING NEW

I’ve spoken before about how I like to do business with people, not companies – and this is reflected in the kinds of projects I’ve invested in over the years. But this way of working doesn’t mean that I’m only interested in getting involved in businesses I know nothing/something?? about. In fact, this approach has actually led me down some pretty interesting paths over the years – I’ve got to talk to fascinating people, decided I want to work with them, and only later found out more about the industries they’re involved in. It means I’ve often found myself outside my comfort zone – something that I think is key to being able to innovate. It’s allowed me to bring a fresh perspective to people’s problems – so always try and push yourself into new areas.

THINK SMALL, THINK BIG, BUT DON’T IGNORE THE MIDDLE WAY TOO

I know everyone thinks of Apple whenever anyone mentions innovation. And of course it’s all with good reason – they’ve come up with some pretty game-changing ideas over the years. I remember when someone first told me that the iPhone would replace my iPod and my phone, and I thought it was the most pointless thing I’d ever heard. Little did I know.

Then, at the other end of the spectrum, you have those tiny, incremental innovations – I’m thinking here of small innovations of the kind that Team Sky made to their bikes and to the lifestyles of their riders in order to win.

But I’ve also found that there are a lot of changes you can make in the middle ground that are a bit bigger than those ‘marginal gains’ you can make, but at the same time they’re not game changers. Just be careful not to dismiss these kinds of ideas because they don’t fit neatly into your plans.

GO WITH YOUR IDEAS – EVEN THE CRAZY ONES

I’m sure that most of the world’s greatest innovations wouldn’t have happened if people had just kept their mouths shut. You know that feeling in a meeting, when you’ve got a great idea, but you suddenly lose all faith in it and decide not to say anything? I hate to think of that happening in any of my businesses – the thought of all of that lost potential, those ideas that could have transformed things dramatically just going up in smoke – it goes against everything I believe business is about. So, I always try to listen to others, to give them room to breathe – and to make sure that my businesses will always be the fertile ground their ideas need to flourish – however crazy they may seem at first glance.

So, there’s just a quick taster of how I’ve made innovation a central part of my daily life – how could you do the same in your business?

– Daniel Hansen

Living in the center of Crypto Valley in Zug

INCREASED FOCUS BY AUTHORITIES

While governments in the US, China and Russia have all taken strict or uncertain regulatory positions toward digital currencies, Switzerland has continued the philosophy that has long made its banks valuable, and Crypto Valley has therefore become the center of this movement.

However, FINMA, The Swiss Financial Market Supervisory Authority, recently closed down QUID PRO QUO Association – a provider of a fake crypto currency, and FINMA is now investigating other possible fraud cases involving virtual money. The company had provided so-called E-Coins for more than a year and had amassed funds of at least USD 4.2 million from several hundred users. According to FINMA, QUID PRO QUO was fraudulent as it did not store the “crypto currencies” on distributed networks using blockchain technology, but instead it was kept locally on QUID PRO QUO’s own servers.

The increased focus by FINMA on crypto currencies in general is a positive thing for the serious providers of crypto currencies, as the illegal providers will be shut down and only the reliable providers will be left.

BLOCKCHAIN
A blockchain is a public ledger of all crypto currency transactions that have ever been executed. It is constantly growing as ‘completed’ blocks are added to it with a new set of recordings. The blocks are added to the blockchain in a linear, chronological order. Each node (computer connected to for example the Bitcoin network using a client that performs the task of validating and relaying transactions) gets a copy of the blockchain, which gets downloaded automatically upon joining the crypto currency network. The blockchain has complete information about the addresses and their balances right from the genesis block to the most recently completed block.

ICO – A NEW WAY OF RAISING CAPITAL

Naturally, during the last two years, Zug has also become the epicentre of the Initial Coin Offering (ICO) revolution. Enabled by the blockchain technology, this new phenomenon has generated a lot of excitement as well as criticism. Lately, the People’s Bank of China has declared ICOs to be illegal. Generally, it seems like regulators and authorities all over the world are uncertain how to go about regulating on a truly virtual matter.

An ICO is an means of crowdfunding by which funds are raised for a new crypto currency venture. An ICO is used by crypto currency businesses to bypass the regulated capital-raising process required by venture capitalists, banks or stock exchanges. In an ICO campaign, a percentage of the newly issued crypto currency is sold to early backers of the project in exchange for legal tender or other crypto currencies, such as Bitcoin.

INITIAL COIN OFFERING
ICOs are similar to IPOs and crowdfunding. Like IPOs, a stake of the start-up or company is sold to raise money for the entity’s operations during an ICO operation. However, while IPOs deal with investors, ICOs deal with supporters that are keen to invest in a new project much like a crowdfunding event. But ICOs differ from crowdfunding in that the backers of the former are motivated by a prospective return in their investments, while the funds raised in the latter campaign are basically donations. For these reasons, ICOs are referred to as crowdsales.

THE SUCCESS OF ICOs

The first ICO (or token sale) was held by Mastercoin in July 2013, and now, ICOs and token sales are extremely popular. As of May 2017, there were around 20 offerings a month, and a new web browser, Brave ICO, generated about USD 35 million in under 30 seconds, and there are at least 18 websites that track ICOs. By the end of August 2017, 89 ICO coin sales worth USD 1.1 billion had been conducted during the year – ten times as much as in all of 2016.

This year, ICOs have fuelled a rapid ascent in the value of all crypto currencies; from about USD 17 billion at the start of the year to a record high close to USD 180 billion at the beginning of September.

THE FIRST REGULATED TRADING SYSTEM

In the US, a new alternative trading system providing a platform for the exchange of tokens categorised as securities has just been launched. This system will be regulated by both the SEC and FINRA in the US and is the first of its kind.

Simply put, the trading system is a new capital market offering a legally approved, regulated alternative to a major securities exchange, such as the New York Stock Exchange and Nasdaq.
Argon Group (an investment bank specializing in ICO capital raising) projects that the total ICO issuance volume could soon top USD 4 billion by the end of 2017.

The benefits of the regulated platform is said to be decreased costs and faster settlement times providing a fairer market, with greater liquidity and more efficient price discovery.

OUR EYES ON ICOs

At the moment, ICOs seem to be the easiest way to raise capital, and as we are living and working in the Canton of Zug, which stands for approx. 90% of the ICOs being issued, we are very excited to follow the development closely. It is definitely an interesting area, which we will look more into in the near-coming future.

Life in the fast lane

Of course I’m happy with the life that I’ve worked so hard to create for myself, my family and friends, but I’m just not the kind of person who says ‘this will do’.

ALWAYS LOOKING AHEAD

Ever since I was a kid I’ve been the same – I’ve always had the same relentless urge to create new things and to try and develop the next big idea. For me, it’s what business is all about – the journey, the part where you get to come up with creative solutions to people’s problems is the fun bit. It’s the time when I think I’m really at my best and feel most alive – when I get the chance to work with interesting, inspiring people with the clients and projects I love.

FAST PACE

Another aspect of work that I most enjoy – particularly in terms of the clients I have relationships with via OMNIA Entertainment – is the sheer pace of what we do. Again, I’ve never been one for waiting around. I’m always keen to get things moving – and I love to surround myself with the kind of people who work in the same way. It’s not to say that I rush into things (although I’ll freely admit I have done sometimes in the past) – but I like to work quickly, in a fast-paced environment. That’s why the areas I’ve built my businesses in – technology, entertainment and fashion – suit me so well.

A COMPETITIVE MARKET

So what do all of these sectors have in common? Well, innovation and creativity are fundamental to all of them – but also a bit of courage is needed in these kinds of businesses. The environment that OMNIA Entertainment is operating in – Hollywood’s film industry – is one of the most cut-throat, creative and competitive on the planet – so there is no time for half-hearted ideas or the same old, same old. And I love that – it’s a place where things move quickly, but where opportunities come up all the time for us – so, we need to be ready to make smart investments and finance projects that will provide a strong return for our business.

PEOPLE, NOT BUSINESSES

It’s an environment that also suits the way I like to work. Hollywood runs on relationships – and I’ve always been really certain that I want to do business with people, not companies. It’s a working philosophy that I can honestly say hasn’t failed me yet – I get out there, I meet people, I ask questions and I listen to their stories, and I do business with the people I really engage with.

That point about stories is an important one too – because it’s often the stories of the people I talk to that really drive me. Obviously Hollywood is in the story-making business, and I love having the opportunity to play a part in helping other people’s dreams become a reality.

A WORLD OF OPPORTUNITIES

So, I’ve always been drawn to sectors that are fast-paced. I enjoy the relentless creativity and the passion of people who work this way – I seek them out and I try to learn from them. And I also love just how fun it can be to work at this speed – no day is ever the same, and you’re never quite sure what is around the corner. Every meeting – whether it’s one pencilled in your diary or a chance encounter with someone who just grabs your attention one day – is an opportunity. It’s a chance to grow, a chance to be creative, and a chance to make a positive difference in someone else’s life.

That’s something that’s well worth moving quickly for.

– Daniel Hansen

The only way is ethics

Today, every other company seems to have a CSR or charitable vision of some sort, and often some pretty well-thought out strategies for reaching those goals. It’s great to see, and it reflects the way that customers demand ever higher standards from businesspeople. A lot of people won’t work with companies who don’t set themselves high ethical standards, and I strongly believe that’s the way it should be.

PERCEPTIBLE CHANGE

But I’ve also always felt that operating in an ethical manner is most powerful when there is a practical, perceptible change. What do I mean by that? Well, I mean investing (whether in terms of time or money) in those projects in a way that will make the maximum difference. So when I invest, or we make a contribution whether in terms of time or money through the Omnia Foundation, we make a personal commitment to engage completely in whatever project it is we’re interested in.

THE PERSONAL TOUCH

I think the reason we take this approach just comes down to the kind of person I am. I’m hands on. I’m someone who has always liked to get out there and meet people – to hear their stories and to find out how I can help them out. I thrive on being directly involved in things. I’ve never understood those businesspeople who will put their money into anything – whether it’s companies or good causes – that they’re not really interested in engaging in. It’s an approach that baffles me.

A TEAM OF LIKEMINDED PEOPLE

I think that this attitude is reflected in the people I work alongside. I’m very lucky in the team of great people I’ve built around me. The Omnia Foundation is the charitable arm of our business, and I think that together we’ve done a great job of carrying the mindset and philosophy that has made OMNIA such a success over to this other part of our business. These people are creative, but they’re also driven by the same entrepreneurial spirit that has always been at the heart of how Mette (OMNIA co-founder) and I do business. We’re all ‘do-ers’ – people who are inspired and excited by making things happen.

ENTREPRENURIAL SPIRIT

Together, we’ve brought that entrepreneurial attitude to bear on all sorts of projects – whether it’s looking at how we can support a forward-looking tech company who is trying to make clean energy affordable for all – or by sponsoring a charity organisation fulfilling the dreams of chronically ill children.

I was really proud to be able to put our time and money into helping Kessel Solar, who have created the world’s most innovative and cost-efficient residential water heating system.

Their work is a great example of the kind of project I love – the chance to make an innovative solution to a serious problem come alive – by investing in a smart, targeted and fully engaged way.

RELATIONSHIPS FIRST

Once again, my approach to business has always been built around developing great relationships first, and then putting my time and money into the places where it will make the most difference. Investments can sometimes be lost in large organisations, and it’s often hard to make that personal connection with the people you’re investing in. That’s not how I do business.

If we’re going to make life better for as many people as possible in this world, then I believe that taking the personal approach, in as impactful and targeted a way as possible, is the only way to truly make a difference.

-Daniel Hansen

Beyond the boardroom

BEYOND THE SUPERFICIAL

But maybe those people who say they hate networking do have a point. Ask the average businessperson what they think of when you say ‘networking event’ and the chances are they’ll mention stale sandwiches, warm drinks and awkward silences. Come to think of it, I’m not a big fan of those kinds of events either. Too often networking events are simply a chance to swap business cards, to tick the box on your to-do list that says ‘business development’, and move on. These kinds of traditional networking events – and I’m only talking about the ones that aren’t done well here – there are plenty that are great – are often just an environment where you get only the most superficial impression of who someone really is. It’s a little like speed dating, but with the fun taken out.

A NEW APPROACH

So how do I approach networking? Personally, I think the first thing to do is to challenge your definition of what networking actually means. Take it out of those poorly air-conditioned conference rooms and instead think of all of those random encounters you have, every day, with the fascinating people you meet in the course of your life. How many of the people who you met today did you actually fully engage with? How many of them did you feel like you actually started to forge a deep connection with? Never mind finding out what their business is – how many of them did you ask about what really drives them? What is their passion – what are their most fundamental needs and the things that really get them excited?

I’m willing to bet that – for most of the people you’ve spoken to in the course of the day – you don’t know the answers to any of these questions. You might know their job title, the business their company does – and that will be about it. I really believe that there is a huge amount of potential being lost here. Just imagine what you could achieve if you went beyond the details on someone’s business card, and really got to know them. Find out about what they dreamed of doing when they were kids, or what they do when they’re not in the office. For me, it all boils down to this idea of doing business with people, not companies. Networking effectively is fundamental to this, because it’s in these kinds of encounters where the deep connections are formed.

AN INTERCONNECTED WORLD

As technology transforms the way we do business, creating an interconnected, wireless world, this kind of agile, flexible approach to building new relationships has become more and more fundamental. Customers and clients now expect solutions that are tailored to them, specifically built around their needs. And the only way that you will ever find out what those needs are is through building relationships.

And expanding this out, I really do believe that we all have a huge opportunity here as business people. For me, technology and our changing business environment has put a real focus on how we build relationships – we all need to now start taking a more agile, global approach to the networks we build. That is an enormous opportunity – think back to that great lost potential contained within all the people you met today – and add to it the possibilities of the millions of people who you can now reach directly through technology.

So, talk to someone new tomorrow – it doesn’t matter how you reach him or her – and your business will thank you for it.

Daniel Hansen, OMNIA CEO and Founder

The journey of OMNIA

EVERYTHING CHANGES

When you’re growing up you’re learning, and evolving and adapting to the world around you. For me, this is a never ending, fun and enriching process to live by every day. We’re not static. And over the years I’ve learned – sometimes the hard way – that the business world isn’t either. Just as there’s no ‘end goal’ in life, I’ve really come to believe that business is also a journey. It’s not the way every businessperson approaches what he or she does – but it’s a mindset that certainly suits me. I’ve built a lot of successful businesses, in large part because of the way that I approach life – but I haven’t always thought this way.

At school most of us typically gravitated towards a group of friends, people we knew. But one day I started to include everyone new I ‘bumped’ into – widening my circle.

I found new friends and sources of inspiration – I had fun and learned new things – and broadened my horizons. Years later I’m still doing it – only now my playground is the business world. I reach out to new people every day and welcome those who reach out to me – my life is richer for it and it makes my life as an entrepreneur fun. I don’t see every person as a business opportunity – people soon see through that – but I do see each new person I meet as a chance to develop myself.

A DIFFERENT WAY OF LIFE

When I set up OMNIA Global I took the less traditional approach to do business with people not companies. My life – both personally, and in terms of my business and my network – is all the more richer for it.

Sure, I’m still in the business of ‘doing business’. But it starts and ends with people. It means I like to know who I’m dealing with, what they’re passionate about, what they’re interested in, their goals and what I can learn from them and vice versa.

What this brings to OMNIA Global and me is a really fascinating business journey. We’re not fixed on a goal in a stuffy business plan, we’re on a journey with our clients that evolves and adapts with the needs of the people we work with. And I think that is the ‘secret’ – if there is such a thing – to growing your business – building it organically in a way that always puts the needs of your clients first.

PEOPLE, NOT BUSINESSES

The recent work we’ve done with OMNIA has really shown how this business model can work. It’s been quite a ride – we’ve had more work on our hands in the last couple of years than in the first five with OMNIA – but most of all it’s been a lot of fun. I’ve still built the business on my ability to find those solutions that are a bit different and that are truly innovative – but I’ve now taken the approach that it’s always the person I’m dealing with that is the most important factor, rather than the type of business they run. It’s proven to be the best way to find that elusive thing – demand – and it’s also meant that I’ve had the chance to hang out with a lot of like-minded people who genuinely interest me over the years.

CREATING A LIFESTYLE YOU LOVE

I’ve spoken before about how I see the business I’ve built with OMNIA as a lifestyle, rather than as a saleable asset. This isn’t just marketing speak – it’s just how I see this highly successful approach that has brought me to this point in my career as an entrepreneur.

Life is full of interesting people, and if there is one thing that the last 22 years have taught me, it’s that your business should be too.

-Daniel Hansen