TIDMALGW
RNS Number : 9131A
Alpha Growth PLC
28 September 2022
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulation (EU) No. 596/2014 (as in force in the United
Kingdom pursuant to the European Union (Withdrawal) Act 2018). Upon
the publication of this announcement, this inside information is
now considered to be in the public domain
THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND IS NOT AN
OFFER OF SECURITIES IN ANY JURISDICTION.
Alpha Growth plc
(" Alpha " or the "Company")
Appointment as Investment Manager and Insurance Update
Alpha Growth Plc (LSE: ALGW and OTCQB: ALPGF), a leading
financial services specialist in the growing longevity asset class,
is very pleased to announce that its wholly owned subsidiary, Alpha
Growth Management LLC (AGM) has been named investment manager of
the Alpha Alternative Assets Fund (NASDAQ: AAACX).
The Alpha Alternative Assets Fund (the Fund) is an innovative
longevity-based interval fund, aimed at providing main street
investor access to an asset class once only available to
institutional or UHNWI investors. Below are some of the key aspects
of this Fund.
-- The minimum investment into the Fund is set at a low level of
$2,500, (1% of the amount required for the BlackOak Alpha Growth
Fund) and therefore significantly increases the total addressable
market for the Fund.
-- The Fund expects to distribute a 5% annual dividend to
investors, this means it is suitable for investors who are focussed
on both income and capital appreciation - this again significantly
increases the size of the addressable investment market.
-- Alpha will earn a 1.5% management fee for the AUM that it
manages, this is not split with any 3(rd) party.
-- The net asset value, which is effectively the AUM that
Alpha's fee will be based upon, is currently circa $7.2m - this is
expected to significantly grow over the coming months and years as
marketing commences.
-- The Fund will generate a daily share price/net asset value
which can be tracked and monitored by investors, with the NAV
calculated based upon the underlying asset value that the Fund
holds.
-- Investors are able to buy into the fund daily and make withdrawals on a quarterly basis.
-- The Fund is targeted specifically towards US resident investors
About the Fund
The Fund is a US focussed, continuously offered,
non-diversified, closed-end management investment company that is
operated as an interval fund. The Fund produces a daily NAV/share
price and engages in a continuous offering of shares of beneficial
interest in the Fund. The Fund is registered under the Investment
Company Act of 1940 and the Securities Act of 1933 and is
authorized as a Delaware statutory trust to issue an unlimited
number of shares. Currently, the Fund has a net asset value of
approximately $7.2 million. Investors can purchase shares daily and
the Fund offers to repurchase shares to provide investors liquidity
on a quarterly basis.
As part of its expansion plans, Alpha was in the process of
developing its own interval fund when the opportunity to step in as
investment manager of an existing fund presented itself, this
allowed the Company to expedite the process, save time and costs,
and quicken the route to market. Alpha's team are now focussed on
repurposing the Fund to focus on longevity assets.
What is an Interval Fund?
An interval fund is very different from the Company's BlackOak
Alpha Growth Fund (BOAGF), in several distinctive ways. BOAGF is a
private fund with a minimum investment of $250,000 and is
structured to provide tax efficient holdings of life settlements.
AAACX is a registered fund, listed, and is open to investors who
wish to invest small amounts. BOAGF produces a monthly NAV, while
AAACX produces a daily NAV/share price. BOAGF purchases individual
life settlements, while AAACX will be investing in other funds and
securities with longevity asset exposure.
How will the Fund be managed and marketed?
Both funds are marketed through the registered investment
advisor networks. The Company determined that it could leverage its
existing relationships with Registered Investment Advisers and
achieve some efficiencies as it could offer solutions to a broader
investor base.
The activities of both funds will be overseen by Chad Schafer,
the recently appointed Head of Affiliated Funds. The Company does
not see BOAGF competing with AAACX for investors but rather sees
AAACX significantly increasing the number of investors who can
invest into its Funds whilst also increasing awareness of Alpha
Growth Plc.
Chad Schafer, Head of Affiliated Funds, commented, "I am
incredibly excited to start my Alpha career with the launch of this
innovative new interval Fund, the potential to significantly and
rapidly grow this new Fund was one of my key motivations for
joining Alpha and I strongly believe we can create a Fund which is
truly industry leading."
Chad continues, "Not only is the Fund expected to generate
significant revenue in the long term and profitability for Alpha
Growth as it scales but it also opens up an asset class which was
previously only enjoyed by institutions and UHNWIs to a
significantly wider group of investors. I believe the Alpha
Alternative Assets Fund is the first registered fund of its type in
the world and represents a real opportunity for significant,
sustainable and profitable growth for Alpha Growth. We see this as
being complimentary to BOAGF, as investors get to know longevity
assets, they will seek out specific strategies and that is where we
can guide them from one structure to another. The Registered
Investment Adviser now has a solution for both the UHNW client who
has a significant 6 figure sum to invest and who is focused on
uncorrelated growth and tax efficiency, and the client who has a
smaller nest egg desiring both uncorrelated income and growth."
Insurance Company Acquisition
The Directors would like to update the shareholders on the
progress of its insurance company acquisition.
Alpha has successfully concluded all significant steps to
complete the acquisition and now only awaits final sign off from
the regulatory authority for the jurisdiction in which the Guernsey
based insurance company's parent company is headquartered.
This sign-off is expected to be received shortly and, as such,
Alpha has commenced the preliminary transition and take-on process
with the seller and its third-party business service providers, to
ensure maximum upside potential can be achieved within the shortest
possible timescale.
Gobind Sahney, Executive Chairman of the Company, commented "As
previously announced, the acquisition of the Guernsey based
insurance company provides an excellent platform to offer extremely
tax efficient insurance-based wealth management products to clients
across the UK and Europe, it also provides Alpha Growth with an
excellent vehicle for further value accretive acquisitions within
Europe and the UK."
Gobind continued, "I'm very pleased that we have been able to
launch our interval fund ahead of schedule, both this and the
Guernsey acquisition are important building blocks as we deliver
upon our plan to be managing over $2bn of AUM by 2025. We continue
to review opportunities that fit our build and buy strategy and I
look forward to sharing further information regarding this in due
course."
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
UK Investor Relations - Mark Treharne ir@algwplc.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 life insurance linked 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.
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