Founded in 2004, Omega Investment Group has grown to become a leading alternative investment management firm with over $3 billion in assets under management. Headquartered in London, the firm specializes in deploying capital across private equity, private credit, and real estate strategies. In recent years, Omega has expanded aggressively across Europe and made significant investments in the healthcare, technology, and financial services sectors. This article takes a deep dive into Omega’s investment strategies, portfolio companies, fund performance, and overall track record over the past two decades.
Omega Focuses on Mid-Market Buyouts and Growth Capital Investments
Omega’s private equity strategy centers around mid-market buyouts and growth capital investments in European companies, targeting equity investments between €50 million to €150 million. The firm seeks to partner with management teams to accelerate growth through operational improvements, strategic acquisitions, and international expansion. Key areas of focus include business services, healthcare, technology, and financial services. Omega’s portfolio includes companies such as International Medical Group, a global health insurance provider, and PlusServer, one of the largest managed hosting providers in Germany.
The Firm Has Deployed Over €5 Billion in Capital Since 2004
Since its founding, Omega has completed over 90 private equity and private credit transactions representing over €5 billion in capital deployed. Some notable recent investments include its acquisition of a majority stake in Stark Group, Denmark’s largest debt collection agency, and its investment in 7days, the largest chain of pharmacies in Greece. Omega has also been an active investor in healthcare, acquiring Spanish fertility clinic Tambre and French medical testing company Biomnis in recent years.
Omega Seeks Differentiated Returns Through Special Situations Investing
Unlike traditional private equity firms, Omega seeks to generate differentiated returns by targeting more complex ‘special situations’ investments. These include corporate carve-outs, succession planning transactions, and restructurings across sectors. By taking on situations with greater operational or financial complexity, Omega aims to create value through hands-on operational improvements and strategic repositioning of assets.
The Firm Has Delivered Strong Returns Across Economic Cycles
Omega has a demonstrated track record of strong returns across different economic environments. Since inception, the firm’s private equity funds have generated gross IRRs between 15-25% net to LPs. Omega’s deep sector expertise and wide European footprint provides it access to proprietary deal flows and allows it to successfully navigate macroeconomic volatility. However, as a mid-market investor, Omega has faced challenges scaling its portfolio companies globally and driving outsized returns compared to larger mega buyout funds.
Omega Recently Raised Its Largest Fund Targeting €2.5 Billion
On the back of its strong performance, Omega recently held a final close on its fifth private equity fund, Omega Capital Partners V, raising €2.5 billion in commitments. This represents the firm’s largest fundraise to date. The new fund will enable Omega to pursue larger transactions while continuing to focus on its core mid-market sweet spot. Given its disciplined investment approach and flexible mandates, Omega is well-positioned to continue delivering attractive returns for LPs moving forward.
In summary, Omega Investment Group has established itself as a leading mid-market private equity investor in Europe with expertise across multiple sectors. Its flexible investment mandates, focus on special situations, and value creation playbook has enabled Omega to deliver strong returns through economic cycles. With over €5 billion deployed and its largest fundraise to date, the firm is poised for its next phase of growth.