The Beneficient Company Group and GWG Holdings Complete Expansion of their Strategic Relationship
April 29 2019 - 5:35PM
The Beneficient Company Group, L.P. (BEN) and GWG Holdings, Inc.
(Nasdaq: GWGH) reported today that they have completed the
previously announced expansion of their strategic relationship, a
transformational event for both organizations that creates a
unified platform uniquely positioned to provide an expanded suite
of products, services and resources for investors and the financial
professionals who assist them. BEN and GWGH intend to collaborate
extensively and capitalize on one another’s capabilities,
relationships and services.
In completing the expansion of the strategic
relationship, GWGH’s board of directors was expanded from seven to
up to thirteen members, and individuals serving on BEN’s current
board of directors replaced the former members of GWGH’s
board. The new GWGH Board of Directors includes industry
veterans with broad fiduciary, banking, capital markets, marketing
and operations experience. Please refer to the Form 14F-1 GWGH
filed with the Securities and Exchange Commission on April 16, 2019
for more information on the members of the GWGH board.
For BEN, the combination provides access to an
expanded distribution platform it expects to utilize to implement
its strategy to deliver liquidity products and services to an
estimated one million mid-to-high net worth individuals in the U.S.
who hold illiquid alternative assets. In turn, GWGH will benefit
from a greater diversification of its offering through the BEN
liquidity suite of products, and an anticipated deleveraging of its
balance sheet to significantly accelerate its growth and
profitability. GWGH intends to support the liquidity products to be
provided to owners of alternative assets through additional
investments in BEN. GWGH expects to earn significantly higher
returns on these assets than they have been earning on life
settlements.
“This expanded relationship enhances BEN’s
potential as we pursue the underserved opportunity to provide
liquidity services for holders of illiquid alternative assets. Our
combined capabilities maximize the potential of both BEN’s and
GWGH’s first-class operations, sales and marketing professionals,
and I am enthusiastic about the opportunity to provide GWGH’s
investors the benefits of broader diversification across
institutionally managed alternative asset classes,” said GWGH
Chairman and BEN Chief Executive Officer Brad Heppner.
“We are very excited to finalize our expanded
relationship with BEN and to execute our strategy to capitalize on
the great potential of two closely aligned, innovative companies,”
said GWGH’s new CEO Murray Holland.
About The Beneficient Company Group, L.P.
(BEN) Based in Dallas, BEN provides liquidity products and
services to the owners of alternative assets and illiquid
investment funds. BEN offers an array of liquidity products to
mid-to-high net worth individuals, family offices and
small-to-mid-size institutional investors. In addition to liquidity
offerings, BEN plans to offer a variety of services; including,
custody and clearing of alternative assets, fund and trust
administration, retirement funds and insurance services for
covering risks attendant to owning or managing alternative assets.
For more information about BEN,
visit www.beneficient.com.
About GWG Holdings, Inc. (GWGH) GWG Holdings,
Inc. (Nasdaq: GWGH), is the parent company of GWG Life, Life
Epigenetics and YouSurance. GWG Life is a leading provider of
liquidity to owners of life insurance in the secondary market. GWG
Life owns a portfolio of alternative life insurance assets equaling
$1.96 billion in face value of policy benefits as of September 30,
2018. Life Epigenetics is commercializing epigenetic
technology for the longevity life insurance industry and other
industries. YouSurance is a digital life insurance agency
working to embed epigenetic testing into life insurance products to
provide consumers a value-added ecosystem that supports their
health and wellness. For more information about GWGH,
visit www.gwgh.com.
Cautionary Statement Regarding Forward-Looking
Statements This press release contains forward-looking
statements that involve substantial risks and uncertainties. All
statements, other than statements of historical facts, in this
press release, including regarding our strategy, future operations,
future financial position, future revenue, projected costs,
prospects, plans and objectives of management, are forward-looking
statements. The words "anticipate," "believe," "estimate,"
"expect," "intend," "may," "plan," "would," "target" and similar
expressions are intended to identify forward-looking statements,
although not all forward-looking statements contain these
identifying words. These forward-looking statements include, among
other things, statements about the (i) projected financial
performance of Beneficient and/or GWG Holdings; (ii)
completion of the transactions described herein; (iii) expected
development of the business of Beneficient and/or GWG
Holdings; (iv) execution of the business plans and strategies of
Beneficient and/or GWG Holdings, (v) filing our Annual Report
on Form 10-K for the year ended December 31, 2018 and
filing the information required to be filed on a Form 8-K/A related
to the prior transaction with BEN. We may not actually achieve the
expectations disclosed in our forward-looking statements, and you
should not place undue reliance on our forward-looking statements.
Actual results or events could differ materially from the
expectations disclosed in the forward-looking statements that
we make. More information about potential factors that could
affect our business and financial results is contained in our
filings with the Securities and Exchange Commission.
Additional information will also be set forth in our future
quarterly reports on Form 10-Q, annual reports on Form 10-K and
other filings that we make with the Securities and Exchange
Commission. We do not intend, and undertake no duty, to release
publicly any updates or revisions to any forward-looking statements
contained herein, except as required by applicable law.
Contact:
For The Beneficent Company Mark
Semer or Daniel Yunger Kekst CNC (212) 521-4800
For GWG Holdings Dan Callahan (612)
746-1935
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