Abacus Life closed a $150 million debt financing facility to enhance strategic growth and operational flexibility.
Quiver AI Summary
Abacus Life, Inc., a global alternative asset manager focusing on longevity data and uncorrelated investment opportunities, announced the successful closure of a $150 million debt financing facility to support its long-term strategic goals. The facility, arranged by Sagard with notable participation from Värde Partners, will provide Abacus with the financial flexibility to meet inventory demands and avoid future equity raises. CEO Jay Jackson highlighted the importance of this funding for business growth and market leadership, while Chief Capital Officer Elena Plesco emphasized the backing from institutional partners as a vote of confidence in Abacus's growth prospects. The company, managing nearly $3 billion in assets, is also advancing innovative wealth management and technology services aimed at leveraging longevity data for improved financial products and planning.
Potential Positives
- Abacus Life successfully closed a $150 million debt financing facility, enhancing its financial position and strategic flexibility.
- The new funding will enable Abacus to meet inventory demand without requiring incremental equity, indicating strong capital stability.
- Support from institutional partners Sagard and Värde Partners reflects confidence in Abacus's business model and growth trajectory.
- The financing will empower Abacus to continue its expansion and strengthen its leadership position in the life settlements market.
Potential Negatives
- Closing a $150 million debt financing facility may indicate that the company is in need of cash flow and could reflect potential liquidity issues, even if it is presented as a strategic move.
- The reliance on debt financing rather than generating sufficient cash flow from operations could signal vulnerabilities in the company's financial health.
- The press release does not mention any significant growth in revenue or profitability, which raises concerns about the long-term sustainability of Abacus Life’s business model.
FAQ
What recent financial milestone did Abacus Life achieve?
Abacus Life successfully closed a $150 million debt financing facility to support its strategic objectives.
Who arranged the debt financing for Abacus Life?
The financing was arranged and led by Sagard, with Värde Partners making a significant commitment.
How will Abacus Life utilize the new financing?
The funding will help Abacus meet inventory demands and avoid raising additional equity in the near future.
What is Abacus Life's business focus?
Abacus Life specializes in alternative asset management, leveraging longevity data to create uncorrelated investment opportunities.
What does the financing mean for Abacus Life's growth?
The financing provides financial flexibility to enhance operations, expand offerings, and solidify Abacus's market leadership.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$ABL Insider Trading Activity
$ABL insiders have traded $ABL stock on the open market 5 times in the past 6 months. Of those trades, 1 have been purchases and 4 have been sales.
Here’s a breakdown of recent trading of $ABL stock by insiders over the last 6 months:
- ADAM SAMUEL GUSKY purchased 18,241 shares.
- MATTHEW GANOVSKY (Co-Founder and President) sold 156,250 shares.
- SEAN MCNEALY (Co-Founder and President) sold 156,250 shares.
- JAY J JACKSON (Chief Executive Officer) sold 2,031,250 shares.
- KEVIN SCOTT KIRBY (Co-Founder and President) sold 156,250 shares.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$ABL Hedge Fund Activity
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To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
ORLANDO, Fla., Dec. 10, 2024 (GLOBE NEWSWIRE) -- Abacus Life, Inc. (“Abacus” or the “Company”) (NASDAQ: ABL), a pioneering global alternative asset manager specializing in leveraging longevity data and actuarial technology to offer uncorrelated investment opportunities, announced today that it has successfully closed a $150 million debt financing facility. The facility was structured to offer flexible terms, with the goal of ensuring that Abacus is well positioned to meet its long-term strategic objectives. The financing was arranged and led by Sagard, with Värde Partners holding a significant commitment.
“We are excited to close this debt financing facility, which represents a major step forward for Abacus Life,” said Jay Jackson, CEO of Abacus Life. “This funding provides us with sufficient capital to meet our inventory demand and ensures that we will not need to raise incremental equity in the foreseeable future. It empowers us to continue growing our business and strengthen our position as an industry leader. We are confident that this facility will play a critical role in our continued success as we expand our capabilities and deliver value to our stakeholders.”
Elena Plesco, Chief Capital Officer of Abacus Life, added, “This facility represents a significant milestone for our Company, providing us with the financial flexibility to continue executing our strategic vision. The strong support from our new institutional partners at Sagard and Värde reflects confidence in our business model and growth trajectory. We are committed to using these funds to further strengthen our operations and unlock new opportunities for both our clients and investors.”
Adam Vigna, Co-founder and CIO of Sagard, commented on the transaction: "This underscores our commitment to providing innovative credit solutions. We are excited to collaborate with Abacus Life. This facility will provide them with the resources to strengthen operations, expand offerings, and solidify their position as a market leader."
“It has been a pleasure to work with Jay and the team over the past several years, and we are pleased to partner with Sagard on this bespoke financing solution to support Abacus Life’s continued growth as a leader in life settlements,” said Monty Cook, Head of Asset-Based Finance, North America Lending at Värde Partners.
Advisors
Milbank LLP is acting as legal advisor to Abacus Life and Morrison & Foerster LLP is acting as legal advisor to Sagard and Värde Partners.
About Abacus
Abacus is a pioneering global alternative asset manager and market maker specializing in uncorrelated financial products. The company leverages its proprietary, cutting-edge longevity data and actuarial technology to purchase life insurance policies from consumers seeking liquidity. This creates a high-return asset class uncorrelated to market fluctuations for institutional investors.
With nearly $3 billion in assets under management, including recently completed acquisitions, Abacus is the only publicly traded global alternative asset manager focused on lifespan-based financial products.
Abacus is expanding its leading expertise in longevity and lifespan into new growth areas:
- ABL Wealth - Leverages decades of data and proprietary algorithms to offer longevity-based wealth management platforms that enable financial advisors to create customized plans and provide access to uncorrelated investments.
- ABL Tech - A groundbreaking technology service that delivers advanced real-time data tracking and analysis for pension funds, governments, insurance companies, retirement associations, and more.
Through each new channel, Abacus is revolutionizing the future of asset management and financial planning, centered on longevity and lifespan.
About Sagard
Sagard is a global multi-strategy alternative asset management firm with US$25B under management, 150 portfolio companies, and 350 professionals. We invest in venture capital, private equity, private credit, and real estate. We deliver flexible capital, an entrepreneurial culture, and a global network of investors, commercial partners, advisors, and value-creation experts. Our firm has offices in Canada, the United States, Europe and the Middle East.
For more information, visit www.sagard.com or follow us on LinkedIn @Sagard
About Värde Partners
Värde Partners is a leading global investment firm specializing in credit and credit-related assets. Founded in 1993, the firm has invested more than $100 billion across the credit quality and liquidity spectrum and currently manages $17 billion in assets. With local investment teams and partnerships in North America, Europe and Asia Pacific, Värde invests across private and public markets with a focus on real estate, asset-based finance and corporate credit. For more information, please visit www.varde.com .
Contacts:
Investor Relations
Robert F. Phillips – SVP Investor Relations and Corporate Affairs
rob@abacuslife.com
(321) 290-1198
David Jackson – IR/Capital Markets Associate
djackson@abacuslife.com
(321) 299-0716
Abacus Life Public Relations
press@abacuslife.com
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