TIDMALGW
RNS Number : 9084U
Alpha Growth PLC
09 April 2021
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulation (EU) No. 596/2014 as it forms part of UK domestic
law by virtue of the European Union (Withdrawal) Act 2018 (as
amended). Upon the publication of this announcement, this inside
information is now considered to be in the public domain.
Alpha Growth plc
(" Alpha " or the "Company")
Trading Update Q1 2021
Alpha Growth Plc (LSE: ALGW and OTCQB: ALPGF), a leading
financial services specialist in the growing longevity asset class,
is very pleased to announce a continuing trend of growth and
improved operational and financial performance for Q1 2021.
The Fund
Further building upon the impressive growth rate of the Black
Oak Alpha Growth Fund during 2020, where the fund AUM increased by
over 100%, we have achieved $5m of additional inflows into the fund
representing an increase of 24% during this quarter.
Since inception 19 months ago, the Black Oak Alpha Growth Fund
has achieved a net return of 15.65% and at the close of Q1 2021 AUM
stood at $25.5 million.
2021 is a key year for Alpha Growth and the Company is looking
to substantively increase the marketing of the Black Oak Alpha
Growth Fund.
As part of this, we are extremely pleased to welcome Michael
Malloy to the team. Michael has significant experience within the
alternative investment sector and will be responsible for growing
the Fund.
Michael stated, "I am incredibly excited to be joining Alpha
Growth at this exciting stage in their evolution. I've been
involved in the alternative investment sector for over 20 years and
have been really impressed by the returns achieved by the Fund. By
leveraging the relationships which I have with registered
investment advisors, along with the implementation of our new
digital marketing strategy, I'm confident that we will continue to
significantly grow AUM."
Gobind Sahney, Alpha Growth Chairman stated, "Michael is a key
hire for the Company, his sector knowledge and expertise further
builds upon our teams' capability and I look forward to working
closely with him as we continue to grow the business and deliver
exceptional returns for our investors."
Commenting further, Gobind said "2020 was a foundational year
for the fund and a significant growth year for the Company overall.
Despite the impact from Covid, we were able to implement various
strategies across the Company which are now enabling the phenomenal
growth. During 2021 we will continue to further invest in these
strategies to ensure we accelerate growth, increase AUM and
substantially build our fee revenue."
Providence Life Assurance Company Ltd
Progressing our plan to invest in strategies that increase
assets under management and long term revenue, the Directors
believe that the Company's recent investment of $3,992,550 to
acquire 95% of Northstar Group (Bermuda) Ltd and its wholly owned
insurance company, Providence Life Assurance Company Ltd, will
prove to show similar gains over the course of 2021. These gains
are expected to be achieved via a build and buy strategy, we are
now actively reviewing a pipeline of acquisition opportunities and
would expect to make further announcements during 2021.
As previously announced, Providence has over $275 million in
segregated accounts assets. That combined with the Fund, brings the
assets under the group to over $300 million and provides the
Company with the scale required to ensure we are an attractive
proposition for investors.
We look forward to providing further updates on the Bermuda
investment when appropriate.
Revolving Credit Facility to Direct Investment (RCF)
As announced last month, the asset management company which we
are in discussions with regarding the RCF is now planning to
directly invest in a block of life settlement assets. This is very
positive for Alpha Growth as it means we will benefit from the fee
revenue associated with the ongoing management of these assets
without the costs of a new structure.
We are pleased to update that the asset management company is
currently in the process of reviewing a block of 100 life
settlements, these assets were sourced by Alpha Growth and will be
managed by Alpha going forward. Once this review completes it will
further add to our AUM and revenue.
The Company expects to make a further update regarding this
before the end of April.
Prospectus
The acquisition of Northstar shares was supported by the
recently announced placing and issuance of shares, with the
remaining funds raised from the placing supporting the growth plans
for all of the Company's strategies.
The Company is required to provide audited consolidated
statements of Northstar/Providence for inclusion in the document.
This unfortunately has delayed publication of the prospectus whilst
the Company awaits the completion of the audit as, historically,
Northstar has not been required to produce any audited financial
information and Providence has only had to provide certain limited
audited information to the Bermudan regulator.
A further announcement will be made once the Prospectus has been
published.
Looking Forward
With a solid strategy in place, the Company is confident of
strong growth prospects going into Q2 and continuing throughout the
remainder of 2021.
The key focus areas over the coming months are :
-- Completion of the RCF
-- Increasing AUM across the group
-- Implementation of our new digital marketing strategy
-- Executing on our build and buy strategy
More information will be shared by the Company in due
course.
**S **
For more information, please visit www.algwplc.com or contact
the following:
Alpha Growth plc +44 (0) 20 3959 8600
Gobind Sahney, Executive Chairman info@algwplc.com
Pello Capital Limited +44 (0) 20 7710 9610
Mark Treharne mt@pellocapital.com
About Alpha Growth plc
Specialist in Longevity Assets
Alpha Growth plc is a financial advisory business providing
specialist consultancy, advisory, and supplementary services to
institutional and qualified investors globally in the multi-billion
dollar market of longevity assets. Building on its well-established
network, the Alpha Growth group has a unique position in the
longevity asset services and investment business, as a listed
entity with global reach. The group's strategy is to expand its
advisory and business services via acquisitions and joint ventures
in the UK and the US to attain commercial scale and provide
holistic solutions to alternative institutional investors who are
in need of specialised skills and unique access to deploy their
financial resource in longevity assets.
Longevity Assets and Non-correlation
As a longevity asset, it is non-correlated to the real estate,
equity capital and commodity markets. Its value is a function of
time because as time passes the value gets closer to the face value
of the policy. Hence creating a steady increase in the net asset
value of the investment. This makes it highly attractive to
investors wishing to counteract volatility within an investment
portfolio and add yield.
Note: The Company only advises on and manages Longevity Assets
that originate in the USA where the structured and life settlement
market is highly regulated.
Forward Looking Statements Disclaimer
Certain statements, beliefs and opinions in this document are
forward-looking, which reflect the Company's or, as appropriate,
the Company's directors' current expectations and projections about
future events. By their nature, forward-looking statements involve
a number of risks, uncertainties and assumptions that could cause
actual results or events to differ materially from those expressed
or implied by the forward-looking statements. These risks,
uncertainties and assumptions could adversely affect the outcome
and financial effects of the plans and events described herein.
Forward-looking statements contained in this document regarding
past trends or activities should not be taken as a representation
that such trends or activities will continue in the future. The
Company does not undertake any obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. You should not place undue reliance on
forward- looking statements, which speak only as of the date of
this document. Readers should not treat the contents of this
document as advice relating to legal, taxation or investment
matters, and are to make their own assessments concerning these and
other consequences, including the merits of information and the
risks. Readers of this announcement are advised to conduct their
own due diligence and agree to be bound by the limitations of this
disclaimer.
Important Notice
The content of this announcement has not been approved by an
authorised person within the meaning of the Financial Services and
Markets Act 2000 (FSMA). This announcement has been issued by and
is the sole responsibility of the Company. The information in this
announcement is subject to change.
This announcement is not an offer of securities for sale into
the United States. The securities referred to herein have not been
and will not be registered under the U.S. Securities Act of 1933,
as amended (the Securities Act), and may not be offered or sold,
directly or indirectly, in or into the United States, except
pursuant to an applicable exemption from registration. No public
offering of securities is being made in the United States. This
announcement is not for release, publication or distribution,
directly or indirectly, in or into the United States, Australia,
Canada, the Republic of South Africa, Japan or any jurisdiction
where to do so might constitute a violation of local securities
laws or regulations (a Prohibited Jurisdiction). This announcement
and the information contained herein are not for release,
publication or distribution, directly or indirectly, to persons in
a Prohibited Jurisdiction unless permitted pursuant to an exemption
under the relevant local law or regulation in any such
jurisdiction.
Pello Capital Limited (Pello) is authorised and regulated by the
Financial Conduct Authority in the United Kingdom. Pello is acting
solely as the Company's broker and placing agent in relation to the
Placing and for no one else in connection with the contents of this
announcement and will not regard any other person (whether or not a
recipient of this announcement) as its client in relation to the
contents of this announcement nor will Pello be responsible to
anyone other than the Company for providing the protections
afforded to their clients or for providing advice in relation to
the contents of this announcement. Apart from the responsibilities
and liabilities, if any, which may be imposed on Pello by FSMA or
the regulatory regime established thereunder, Pello accepts no
responsibility whatsoever, and makes no representation or warranty,
express or implied, for the contents of this announcement including
its accuracy, completeness or verification or for any other
statement made or purported to be made by it, or on behalf of it,
the Company or any other person, in connection with the Company and
the contents of this announcement, whether as to the past or the
future. Pello accordingly disclaims all and any liability
whatsoever, whether arising in tort, contract or otherwise (save as
referred to above), which it might otherwise have in respect of the
contents of this announcement or any such statement.
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