Abacus Global Management has completed a dual-tranche securitization valued at over $400 million, advancing the growth of its asset management business.
Key points
•$400 Million Securitization
•Investment-Grade Rating
•Asset Management Business Growth
The financial services company specializing in longevity-based assets and personalized financial planning announced the closing of a dual-tranche securitization collateralized by a diversified portfolio of life insurance policies. The total structure is valued at over $400 million including the Class A and B notes and the residual interest.
Abacus expects to use the net proceeds from the transaction to support continued policy origination and fund general corporate purposes, while expanding assets under management and shifting towards a larger share of recurring, fee-related earnings. The offering was oversubscribed and was upsized in response to investor demand.
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.' Jay Jackson, Chairman and CEO, added, 'The investment-grade rating and the demand we saw from institutional investors confirm something we’ve believed for a long time.'
