TIDMALGW
RNS Number : 5825F
Alpha Growth PLC
19 July 2021
Alpha Growth plc
(" Alpha " or the "Company")
Trading Update Q2 2021
Alpha Growth Plc (LSE: ALGW and OTCQB: ALPGF), a leading
financial services specialist in the growing uncorrelated longevity
asset class is very pleased to provide a trading update for Q2
2021.
Key Highlights for the quarter.
-- Aggregate assets under control of the group have grown by
circa $40m in the past quarter alone, increasing from $300m to
circa $340m.
-- Providence Life Assurance Company (PLAC) has increased its
balance sheet assets from $275m to over $308m, an increase of more
than $33m.
-- The Black Oak Alpha Growth Fund has increased to circa $30m
in assets, up from $22m at the beginning of the year and an
increase of $4.5m in the past quarter alone.
-- A strategic relationship has been formed with Eaton Partners,
a tier 1 capital introducer, to further accelerate growth in AUM.
Eaton Partners have been instrumental in raising over $100bn in
capital for funds since inception and are extremely well regarded
in the industry.
-- Peter Gilman has been appointed as a special advisor to Alpha
Growth. Peter is the former CEO and founder of Aegon Extraordinary
Markets where he successfully built a business that generated
revenues in excess of $2bn.
Alpha Growth has enjoyed an extremely strong first half of the
year and continues to build upon its three main strategies; the
following table outlines these strategies which have all been built
around key client trends and market requirements.
Strategy: Strategy: Strategy:
Separate Managed BlackOak Alpha Growth Providence Life
Accounts Fund Assurance Company
-------------
Client One off solutions Investor aligned, Insurance-linked
Demand for investors seeking tax efficient uncorrelated wealth management,
Trend uncorrelated growth growth global solutions
and income through for tax efficient
bespoke structures growth.
-------------------------------- ---------------------------------- --------------------------
Longevity Life Settlements/Structured Life Settlements Private Placement
Asset Settlements Life Insurance/Variable
Type Annuities
-------------------------------- ---------------------------------- --------------------------
Key Features Custom structures/structured Steady growth/ Liquidity/Investor Insurance Directed
products (hybrid aligned fees Fund Platform/Global
LS/SS)/fixed income Solutions
like performance
-------------------------------- ---------------------------------- --------------------------
Growth Direct/Introducers/Partnerships RIA Networks/Direct RIA Networks/Block
Channels Acquisitions/Direct
Origination/Partnerships
-------------------------------- ---------------------------------- --------------------------
Strategy: Separate Managed Accounts
As previously announced, the Company's discussions with one of
the UK's largest and most prestigious asset managers to secure a
short-term credit facility were almost concluded with the addition
of direct asset investments by the asset manager, as well as the
originally contemplated credit facility.
The UK asset manager to date has been working through internal
underwriting and structuring issues which have delayed the approval
for both the credit facility and direct asset purchase. We were
anticipating a late April conclusion however the complexities of
creating a framework for future additional investments by the asset
manager, along with the challenges presented by Covid, have led to
delays. Further announcements will be made in due course and we
continue to work closely with them to ensure a successful
conclusion.
The Company views its exercise with the UK asset manager as time
well invested in developing its separate managed account strategy,
this has increased the interest and exposure from other significant
asset managers that we are now working with to offer a similar
strategy to investors for similar asset purchase opportunities
and/or credit facilities.
Alpha Growth is working with Eaton Partners, a tier 1 capital
introducer and part of the global Stifel Financial Group, for
introductions relating to separate managed accounts. This will
substantially increase our marketing activity for this strategy and
management expect that this will lead to significant growth.
The Company also continues to progress the Alpha Growth &
Income (AGI) strategy, this strategy is a combination of life
settlements and life contingent structured settlements hedged by a
life insurance policy that is suitable for investors seeking
cashflow and growth, funded in either a separate managed account or
as a co-mingled fund with a minimum investment of $50 million. It
is anticipated that this strategy will be complementary to PLAC's
client base and separate managed account investors.
Strategy: The BlackOak Alpha Growth Fund
Further building upon the impressive growth rate of the BlackOak
Alpha Growth Fund in the first quarter, the Fund closed the second
quarter with circa $30 million in assets - An increase of
$4.5m.
This significant increase has been driven by a combination of
new investors, as well as additional contributions from existing
investors. The 36% growth in net assets during the first 6 months
of this year gives validation to this strategy and we expect to see
continued strong growth through the remainder of this year and
beyond.
With the additional contributions, the Fund has now in excess of
81 life settlements with a total face value of over $65 million and
continues to add to the well diversified portfolio.
The Fund continues to grow its existing network of registered
investment advisors who are the primary sources of the
contributions.
Strategy: Providence Life Assurance Company Ltd.
The Directors continue to be pleased with the performance of its
investment in Providence Life Assurance Company Ltd (PLAC). The
acquisition and onboarding of the Company's Directors, Gobind
Sahney and Jason Sutherland, is now complete and we are pleased to
announce that the assets of PLAC as of the end of May 2021 totaled
$308 million, this represents a significant increase from the
previously reported $275 million.
As previously announced, we are planning to grow PLAC
substantially by the execution of our build and buy strategy.
From a buy perspective, we continue to progress our strong
pipeline of acquisition opportunities and will look forward to
updating the market when appropriate.
From a build perspective, we continue to leverage PLAC's
existing relationships with fund managers in the alternatives,
fixed income, and equities space. We are very pleased to be working
with fund managers from prestigious companies such as JP Morgan,
Goldman Sachs, Coutts, Golub Capital, etc.
We are also pleased to name Peter Gilman as a special advisor to
Alpha Growth. He is the founder and former CEO of AEGON's
Extraordinary Markets, where he built a successful insurance
business that generated annual revenues in excess of $2 billion
dollars and contributed over $1 billion of embedded value to AEGON.
He also developed various international strategies and HNW
businesses that generated several billion dollars of revenue. We
are looking forward to working closely with Peter in accelerating
the growth of PLAC as well as bringing new strategies to Alpha.
Prospectus
The Company is working with its legal and accounting advisors to
seek to meet the prospectus requirements against the background of
an acquisition of an insurance group that has previously presented
financial statements in line with Bermuda regulatory requirements
but not the IFRS accounting standard which the Company adheres to.
This entails liaising with the FCA as well as seeking additional
accounting advice and may possibly require some additional updating
of the insurance company's accounts. We appreciate the patience of
our shareholders whilst we work through these issues.
We would like to clarify that the Company's closing of the
transaction with the seller of Providence was originally
conditional on the FCA approving the Prospectus, along with
required Bermuda regulatory approvals. Once the Bermuda regulatory
approvals were received, the seller wished to close and in
conference with Pello, the Company's broker, the placing was
completed as announced. The placing agreement was conditional on
the shareholder approval at the Company's annual general meeting to
issue new shares, and the Placing Shares were issued on 15 March
2021 as stated in our announcement on 8 March 2021. The issue of
the Placing Shares was not specifically conditional on the
publication of the Prospectus.
Once the FCA approves the Prospectus, the shares will be
admitted for trading on the standard list of the London Stock
Exchange as previously stated. A further announcement will be made
once the Prospectus has been published.
Chairman Statement
Gobind Sahney, Alpha Growth Executive Chairman, stated, "We have
enjoyed another very strong quarter of growth across our business
and we are incredibly excited about some of the opportunities that
the group has in the second half of this year.
Despite Covid naturally delaying some decision making, we have
achieved market leading growth and remain extremely confident in
the prospects of the group."
Gobind continued, "We are very pleased to welcome Peter Gilman
as a special advisor to Alpha Growth and look forward to working
with him as we accelerate our growth plans. We are also looking
forward to working with Eaton Partners as we continue to deliver
upon our goal of creating a substantial and fast-growing financial
services company."
The key focus areas going forward are:
-- Increase assets across the group
-- Execute our build and buy strategy
-- Expand and grow all strategies
-- Seek new opportunities to meet client driven demand
-- Add specialized skill sets to the team
More information will be shared by the Company in due
course.
** ENDS **
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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END
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