TIDMALGW
RNS Number : 4357F
Alpha Growth PLC
15 July 2019
15 July 2019
Alpha Growth plc - Corporate Update
Alpha Growth plc
("Alpha", or the "Company")
CORPORATE UPDATE FOR THE 3 MONTHSED 30 JUNE 2019
Alpha Growth plc (LSE: ALGW), the financial services specialist
in the growing Senior Life Settlement ("SLS") asset class is
pleased to provide a quarterly update. Through Q2 2019 your Company
has achieved several milestones and continues to advance its other
strategies. This update is only a view into the three months since
the previous update published 4 March 2019. It is not intended to
reflect anything else except some of the noted activity by the
Group during this period.
Highlights
- Attendance at various events has led to multiple discussions
with prospective clients, some in advanced stages.
- The Company continues to publish articles and white papers on
the asset class and its various aspects and intricacies.
- The successful launch of the BlackOak Alpha Growth Fund,
structured to be able to accept international investors, began
actively marketing in May.
- Colva is generating revenue from clients that continue to receive valuation services.
Quarterly Corporate Update
During this period the Group elevated its visibility among the
investment community from which it draws its clients. For the
second year in a row, we were invited to attend the Swiss Financial
Services The Alternative Investment Club ("TAIC") event in Zurich.
The TAIC is attended on an invitation only basis, with preselection
of alternative investment asset managers by asset allocators. Alpha
was selected by six asset allocators for 30 minute meetings each
for the first half of the day. The second half of the day are
presentations by alternative asset experts providing insight into
the investor/investment marketplace for allocators and asset
managers.
Alpha was also invited and attended a family office conference
in the US where the Company's COO, Danny Swick, presented to an
audience of over 300 family office prospective investors. Both
events have led to multiple discussions with prospective clients
and some in advanced stages of discussion for the Group's various
strategies. The Company is focused on promoting its skill sets and
solutions to prospective clients and continuously seeks these
opportunities to engage with an active investor audience.
Alpha's Chief Actuary, Rajiv Rebello, initiated and will
continue to publish articles and white papers on the asset class
and its various aspects and intricacies, with the first one being
printed in April (link). Publishing these articles helps elevate
Alpha's brand and market profile as well as demonstrating our
expertise and innovation in the longevity asset class.
The Group's core strategies and product suites continue to
attract the attention of prospective clients. As mentioned in the
prior update, our discussions for a specific hybrid security
investment from a UK top 10 insurance company progressed over the
second quarter albeit slower than expected. Additional analysis was
requested by the prospective client's decision makers which had a
time lag to be produced and caused a delay. We remain engaged with
this prospective client in regards to receiving an investment
mandate.
The most significant quarterly milestone for the Group was the
launch of the BlackOak Alpha Growth Fund ("Fund"). The Fund is a
Cayman Island Limited Partnership with a Master/Feeder structure.
There is an Irish Designated Asset Company that is between the
Master and Feeder that provides tax advantages for investors in the
Feeder from certain jurisdictions. Creating the structure in this
way enables the fund to be able to accept international investors -
giving the Fund a truly global reach and relevance to a wider
audience. The creation of the structure was carefully constructed
by Gobind Sahney and Danny Swick in close coordination with the
Company's legal advisors in the US, Caymans, and Ireland, along
with KPMG, the Fund's global tax and audit accountants. We are
pleased to be working with SL Investment Management ("SLIM") and
hope to build further on that relationship going forward. The
Company's wholly owned subsidiary, Alpha Longevity Management
("ALM"), is the investment manager for the Fund and the Group in
joint venture with SLIM, we are each equal general partners. ALM
receives the annual management fee and the Company will receive the
performance fee. The initial committed capital is currently in the
process of being onboarded.
The Group began active marketing of the fund in May once the
private placement memorandum ("PPM") was filed with the Cayman
Island Monetary Authority. Since then, we have been sending out
copies of the PPM and are committed towards continuing its
marketing strategy over the coming months to attract investment and
build assets under management, specifically targeting pre-qualified
leads. These leads are either generated by external sources, such
as its relationship with Devonshire Warwick, as well as internally
and through relationships of the Group's officers. The appeal of
the Fund is its underlying alternative asset class of life
settlements which are uncorrelated to traditional financial markets
and target a double-digit annualized return in an investor aligned
structure.
As with the nature of the asset class, regulation and in regard
to the innovation of our product offerings, the client's due
diligence process can be extensive and time consuming. To reduce
these barriers to entry, the Fund provides for a more streamlined
process once the fund's PPM and supporting documentation is
delivered. This nevertheless may not always make the process any
less time consuming or simple, however we continuously see the
benefits of being a listed company through this process and the
enhanced visibility and transparency that comes with being a public
company.
The acquisition of Colva has begun to prove itself by the direct
engagement between the client's actuarial experts and our Chief
Actuary. This direct engagement has eliminated several steps in the
information flow. Colva is generating revenue from three clients
that continue to receive the valuation services. These initial
numbers are small c$10,000/month but indicate the value that third
parties put on its core services.
With the announcement by the head of the US Federal Reserve that
the easing of interest rates was imminent, the Company has been
receiving multiple inquiries from various institutions seeking
uncorrelated assets with yield and a desire to learn more about
longevity assets as an investment solution. The Company always
follows up on these initial inquiries and is hopeful of converting
inbound solicitations into new business.
The Group's full fiscal year comes to a close at the end of
August. We don't expect any significant developments over the next
couple of months that will be reflected in the year end accounts.
We do however expect that the next fiscal year's account will be
very much different and reflective of the continuing efforts as set
out above and the Directors look forward to the new fiscal
year.
The Directors thank the shareholders for their continuing
support and look forward to making further progress in the upcoming
new fiscal year.
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014.
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
Novum Securities Limited (Corporate Broker)
+44 (0) 207 399 9400
Colin Rowbury
crowbury@novumsecurities.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 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
wholistic solutions to alternative institutional investors who are
in need of specialised skills and unique access to deploy their
financial resource in longevity assets.
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. Prospective recipients 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. Prospective recipients of this document
are advised to conduct their own due diligence and agree to be
bound by the limitations of this disclaimer.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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