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About Abacus Life
Abacus Life, Inc. (NASDAQ: ABLLW) is a vertically integrated alternative asset manager specializing in the acquisition, management, and monetization of life insurance policies. By leveraging advanced actuarial and longevity technologies, Abacus Life provides liquidity solutions to policyholders while creating a high-return, uncorrelated asset class for institutional investors. This dual-focus business model positions Abacus as a unique player in the alternative investment and life settlement industry.
Core Business Operations
At its core, Abacus Life operates as a market maker in the life insurance space. The company purchases life insurance policies from consumers who seek immediate liquidity, often due to changing financial needs. These policies are then managed as long-term financial assets, offering investors a stable, market-independent return profile. Abacus Life’s proprietary algorithms and decades of actuarial data enable precise pricing and risk assessment, ensuring sustainable value creation for all stakeholders.
Vertical Integration and Technological Innovation
Abacus Life’s vertically integrated model spans the entire lifecycle of a life insurance policy, from origination to asset management. This comprehensive approach is supported by its cutting-edge technological platform, ABL Tech, which provides real-time data tracking and advanced analytics. These tools enhance decision-making for pension funds, governments, insurance companies, and other institutional clients, reinforcing Abacus Life’s position as a technology-driven leader in the industry.
Expansion into Wealth Management
Beyond life settlements, Abacus Life is expanding its offerings through ABL Wealth, a longevity-based wealth management service. This platform utilizes the company’s actuarial expertise to help financial advisors develop customized financial plans and provide access to uncorrelated investment opportunities. The recent acquisition of FCF Advisors further diversifies Abacus Life’s portfolio, adding free cash flow-focused investment strategies and broadening its reach in the asset management sector.
Market Position and Competitive Landscape
Abacus Life operates within a niche yet growing segment of the alternative investment market. Its unique combination of actuarial technology, vertical integration, and a publicly traded structure sets it apart from competitors. The company’s focus on regulatory compliance and transparency further enhances its appeal to institutional investors seeking stable, non-market-correlated returns.
Significance in the Industry
As the only publicly traded licensed life policy origination company, Abacus Life plays a pivotal role in transforming life insurance policies into viable financial instruments. Its innovative approach not only benefits policyholders but also addresses the growing demand for alternative investment options. By integrating technology and actuarial science, Abacus Life is pioneering new standards in the life settlement and wealth management industries.
Abacus Life (NASDAQ: ABL) has announced a definitive agreement to acquire Carlisle Management Company SCA, a Luxembourg-based investment manager in the life settlement space, for approximately $200 million. This strategic acquisition will add up to $2 billion in assets under management to Abacus, accelerating its expansion as a global alternative asset manager. The deal aligns with Abacus' goal of enhancing its offering to institutional investors seeking attractive risk-adjusted returns with low correlation to other asset classes.
Key points of the acquisition include:
- Carlisle shareholders will receive $73.5 million in Abacus bonds and 9.3 million Abacus common stock
- The transaction is subject to regulatory approval and certain performance thresholds
- Carlisle is licensed as an Alternative Investment Fund Manager under CSSF oversight in Luxembourg
- The acquisition is expected to provide synergies and expand Abacus' global financial presence
Abacus Life has successfully closed its oversubscribed public offering, raising gross proceeds of $92 million by selling 11,500,000 shares of common stock at $8.00 per share. This includes the full exercise of the underwriters' option to purchase an additional 1,500,000 shares. The funds will support corporate operations, including buying life settlement policies, business strategies, working capital, and possibly repaying or refinancing debt. Piper Sandler, TD Securities, B. Riley Securities, and KKR Capital Markets acted as joint book-running managers. The offering's registration statement was declared effective by the SEC on June 20, 2024, and the final prospectus was filed on June 21, 2024.
This announcement does not constitute an offer to sell or a solicitation to buy these securities in any jurisdiction where such activities would be unlawful.
Abacus Life (NASDAQ: ABL) has announced the pricing of its oversubscribed public offering of 10,000,000 shares at $8.00 per share.
The gross proceeds are expected to be approximately $80 million, excluding the underwriters' 30-day option to purchase an additional 1,500,000 shares. The offering is anticipated to close on June 24, 2024, subject to customary conditions.
Abacus plans to utilize the net proceeds for operations, including purchasing life settlement policies, supporting its business strategy, working capital, and potentially repaying or refinancing indebtedness.
Piper Sandler & Co., TD Securities (USA) , B. Riley Securities, and KKR Capital Markets are acting as joint book-running managers.
Abacus Life (NASDAQ: ABL) has initiated a public offering of 10,000,000 shares of its common stock, aiming to raise capital.
The offering includes an option for underwriters to purchase an additional 1,500,000 shares within 30 days.
Proceeds will be used for operational needs, business strategy support, working capital, and potentially repaying debt.
The offering's completion is subject to market conditions, with Piper Sandler & Co., TD Securities, B. Riley Securities, and KKR Capital Markets acting as joint book-running managers.
A registration statement has been filed with the SEC but isn't effective yet.
Abacus Life (NASDAQ: ABL) announced that it led the life settlement industry in 2023 with a 26% market share in funds paid to clients, according to The Deal's annual ranking.
The company paid $220 million in life settlement funds, equivalent to over 20% of policy face value on average, which is 32% higher than its closest competitor.
Additionally, Abacus acquired 640 policies with a collective face value of nearly $1.1 billion, reflecting a 31.4% increase from 2022, compared to the industry growth of 4%.
CEO Jay Jackson expressed pride in the company's achievements and commitment to delivering exceptional value to clients.
Abacus Life (NASDAQ: ABL), a leader in alternative asset management, announced a new national distribution agreement with AIMCOR, a top insurance marketing organization. This relationship enables Abacus to offer life settlement solutions through AIMCOR’s network of 40+ brokerage general agencies. Abacus CEO Jay Jackson highlighted the partnership's potential to help AIMCOR members leverage Abacus' resources, fostering better financial decisions for policyholders. AIMCOR's EVP, Marc Verbos, emphasized the collaboration's role in promoting life settlements as a mainstream financial solution, enhancing the strategic growth and education of financial professionals.
Abacus Life, Inc. reported a more than doubled total revenue of $21.5 million in the first quarter of 2024, driven by a 59% year-over-year growth in the Direct-to-Consumer division. The company also launched ABL Tech, raised $25 million from the issuance of senior notes, and strengthened its management team. Adjusted EBITDA grew by 38.1% to $11.6 million, with an EBITDA margin of 53.9%. Despite a GAAP net loss of $1.3 million, adjusted net income was $6.7 million. The company had cash equivalents of $65.4 million and repurchased shares worth $11 million.
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