Abacus Global Management, Inc. (“Abacus” or the “Company”) (NYSE: ABX) has completed a $400 million securitization. The $400 million securitization marks another step in Abacus Global Management’s expanding asset management strategy. Abacus is a financial services company focused on alternative asset management. The company specializes in longevity-based assets and personalized financial planning. The completed transaction uses a diversified portfolio of life insurance policies as collateral. The total structure exceeds $400 million in value.
It includes Class A and Class B notes, along with the residual interest. In addition, a third-party rating agency assigned an investment-grade rating to the notes. The transaction also attracted strong interest from institutional fixed income investors. Consequently, Abacus gains another channel for connecting longevity-based assets with institutional capital. The company expects to use the net proceeds to support continued policy origination. It will also use part of the proceeds for general corporate purposes. More importantly, the transaction supports the continued growth of Abacus’s asset management business. The company used a special-purpose vehicle to issue the investment-grade notes.
The notes are backed by a pool of life insurance policies. Meanwhile, Abacus continues to service those policies through its affiliates. The $400 million securitization also supports Abacus’s broader revenue strategy. The company aims to increase revenue from recurring, fee-related earnings. This approach can reduce its reliance on transactional gains over time. It also supports the company’s efforts to expand its assets under management. Abacus relies on an integrated origination, underwriting, and servicing platform. This structure helps connect longevity-based assets with institutional capital markets. The transaction therefore supports both capital markets access and asset management expansion.
Jay Jackson, Chairman and Chief Executive Officer, added, “This is the largest securitization to date for Abacus. The investment-grade rating and the demand we saw from institutional investors confirm something we’ve believed for a long time. There’s a deep market for longevity-based assets among the largest fixed income buyers in the world. That validation matters as much as the deal itself, and it tells us the path we’re on is the right one. I also want to thank the entire Abacus team for the work that made this closing possible.”
Management Highlights the Platform Strategy
Elena Plesco, Chief Investment Officer, said, “This is a platform strategy, not a financing strategy. By packaging longevity-based assets into formats that institutional fixed income investors can own, we broaden and diversify our investor base, deepen the distribution channels available to our Asset Group, and build a durable, management fee driven revenue base, all while continuing to turn our balance sheet multiple times per year.”
Plesco highlighted the broader purpose behind the transaction. She positioned the securitization as part of a long-term platform strategy. The structure allows institutional fixed income investors to access longevity-based assets. At the same time, it helps Abacus broaden its investor base. The company can also develop additional distribution channels through its Asset Group. Furthermore, the strategy supports a recurring management fee-driven revenue base.
Jackson also noted the significance of institutional investor demand. The investment-grade rating provides another important element to the transaction. Meanwhile, institutional interest demonstrates demand for longevity-based assets within fixed income markets. Abacus views this demand as important for its broader asset management strategy. The company also emphasized the scale of the latest transaction. This deal represents Abacus’s largest securitization to date.
Private Placement and Securities Information
The notes were offered and sold in the United States through a private placement. The offering targeted accredited investors under Section 4(a)(2) of the Securities Act of 1933. The Securities Act was amended, and the transaction relied on its applicable private placement provisions. The notes have not been registered under the Securities Act. They also have not been registered under any state securities laws.
Therefore, investors cannot offer or sell the notes in the United States without registration. An applicable exemption from registration requirements must apply. This press release does not constitute an offer to sell securities. It also does not constitute a solicitation of an offer to buy securities. Furthermore, the release does not constitute an offer, solicitation, or sale in any jurisdiction. This restriction applies where such activity would be unlawful.
Forward-Looking Statements
All statements in this press release other than historical facts are forward-looking statements. This also includes oral statements concerning the subjects discussed in the release. These statements fall within the meaning of Section 21E of the Securities Exchange Act of 1934. The Act has been amended. Abacus bases these forward-looking statements on several assumptions about future events. However, various uncertainties and factors could affect the company’s actual results.
Many of these factors remain outside Abacus’s control. Therefore, actual results could differ materially from forward-looking statements. Forward-looking information includes Abacus’s financial and operational outlook. It also covers the company’s operational and financial strategies. These strategies include planned growth initiatives and their potential benefits. The statements also cover Abacus’s ability to execute those strategies successfully. They further include expected results from those initiatives. Projections involving future earnings and expected capital also fall within this category.
Abacus’s ability to generate future cash flows also represents forward-looking information. Securitization schedules and transaction timing remain subject to future developments. Future demand for Abacus’s products and services also involves uncertainty. The reliability of the company’s fund structures remains another consideration.
Market confidence and expectations can also affect future outcomes.
Abacus generally identifies forward-looking statements through specific terms. These terms include “believe,” “project,” “estimate,” “expect,” “intend,” and “anticipate.”
Other terms include “goals,” “prospects,” “will,” “would,” and “will continue.” The company also uses “will likely result” and similar expressions.
Negative versions of these words can also identify forward-looking statements.
Abacus believes its assumptions concerning future events are reasonable. However, the company cautions that predicting certain important factors remains difficult. Those factors could affect future business performance and financial results. Consequently, actual outcomes may differ from the company’s expectations. Potential factors include the impact of business relationships. These relationships include those involving employees, customers, and competitors.
General economic and business conditions can also influence results. Changes in financial markets may create additional uncertainty Political instability in the United States and abroad may also affect operations. Such instability includes political violence, terrorism, and war. Weakness or adverse changes in sector activity may create further risks. Similar conditions could affect sectors operated by Abacus’s affiliated companies.
High or increasing interest rates may influence these sectors. A weak U.S. economy could also affect business activity. Abacus’s operating subsidiaries also face significant competition. In addition, the company must comply with extensive government regulations. Failure to meet Abacus’s investment objectives could affect future results. The inability to raise capital on favorable terms may create additional challenges. Abacus also identifies its control environment as a potential risk factor. This includes the identification of control deficiencies.
These forward-looking statements also involve risks described in Abacus’s regulatory filings. The company files these documents with the U.S. Securities and Exchange Commission. These filings include the Annual Report on Form 10-K. They also include Quarterly Reports on Form 10-Q and subsequent periodic reports. Those documents identify additional risks and uncertainties. Such factors could cause actual events and results to differ materially.
Abacus cautions investors against placing undue reliance on forward-looking statements. These statements speak only as of the dates on which they are made. Abacus assumes no obligation to update or revise these statements. Except where required by law, the company does not intend to make such updates. This applies to changes resulting from new information or future events. It also applies to other developments that may occur. Finally, Abacus does not provide assurance that it will achieve its expectations.
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News Source: Businesswire.com
