TIDMALGW
RNS Number : 9386C
Alpha Growth PLC
28 February 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
Alpha Growth Plc
("Alpha", or the "Company")
Periodic Business Update - 2022 Focus and the 2B Plan
Alpha Growth Plc (LSE: ALGW and OTCQB: ALPGF), a leading
financial services specialist in the growing longevity asset class,
is pleased to communicate its future strategy for growth whilst
updating shareholders on overall company performance and
communication initiatives.
The Company's development has been transformational in 2021 and
with the new year, the Directors wanted to provide the shareholders
with the following details on the Company's focus for 2022 to set
the stage for its continued growth.
The 2B Plan
We are very excited to put forth our future growth strategy -
The Alpha Growth 2B Plan.
The 2B plan is Alpha Growth's ambitious but achievable objective
to be managing over $2bn of AUM by 2025, this will provide the
Company with a significant source of predictable and recurring
revenue. This significant growth in AUM will be achieved by
continuing to execute upon our build and buy strategy, as well as
by offering a number of new, complementary and innovative
strategies to our clients.
To support our buy strategy, we have an established acquisition
methodology with a strong pipeline of targets which will
substantially increase AUM. We expect to update our shareholders
this quarter on the progress of this part of the strategy.
The Company does not anticipate an equity raise to complete any
of the current targeted acquisitions and believes that future
acquisitions can be supported, where required, by the exercise of
the outstanding warrants.
To support our build strategy, we will aggressively grow AUM
organically by continuing to market our strategies to institutions,
family offices and high net worth individuals. However, we also
plan to offer our strategies to a wider audience of investors by
launching a product with reduced financial entry commitments on
both the insurance and fund segments of the Company, we expect this
to be a key driver of future fund growth.
In addition, our build strategy will be further supported by a
number of initiatives to expand our marketing and distribution in
both our fund and insurance segments.
Further information regarding our 2B strategy will be provided
in due course.
BlackOak Alpha Growth Fund Update
Following on from its previous statements earlier this month on
the BlackOak Alpha Growth Fund ("Fund"), the Directors are pleased
to report that the Fund has enjoyed a strong start to the year and
achieved new subscriptions into the fund in January and February of
approximately $4m. This brings our total AUM for the fund closer to
$50m and increases the visibility of the fund to a larger investor
audience which uses the $50m minimum as a benchmark.
Recent market volatility caused by world events further
underpins the appeal of a fund which provides returns that are
uncorrelated to the stock market. We expect further strong interest
moving forward.
Insurance Business Update
Further to its previous announcement earlier this month, the
Company's insurance business, Providence Life Insurance Company Ltd
(PLAC) continues to add to the Company's combined assets under
management.
Private Placement Life Insurance continues to be a highly sought
after insurance linked wealth management strategy by ultra-high net
worth individuals and family offices. As a segregated account
company, PLAC offers private placement life insurance (PPLI) and
annuity (PPVA) policies.
Since the acquisition, PLAC has put in place the systems and
processes for the direct origination of PPLI and PPVA policies. As
part of its future growth strategy, PLAC has commenced a plan of
distribution for its policies through registered investment
advisors and other professionals that advise ultra-high net worth
individuals and family offices on PPLI.
PLAC will issue its first policy this month for $5m in total
premiums. The premiums in a PPLI are essentially the assets under
management.
Since acquiring PLAC in March 2021, the assets under management
in the segregated accounts are over $277m with total assets of
approximately $290m and producing total business income,
essentially the fees earned on asset management, of circa $1.1m for
2021.
Whilst the client base remains steady, due to the more
correlated nature of the insurance offering, the value of assets
does fluctuate, and the stated figures are just snap shots in time.
With the broader market experiencing volatility in the fourth
quarter, the figure does represent a slight decrease to where the
market was mid 2021. PPLI's are structured for multi decade asset
holdings and the AUM will fluctuate over time, as markets recover
the AUM will increase.
This underpins the Company's strategy of providing different
investment options within both the longevity asset sector and
insurance linked wealth management sector, investors choose their
preferred strategy based upon their investment objectives.
Shareholder Communications
The Company recognises the importance of good shareholder
communications and has launched an initiative to ensure we provide
both current and prospective shareholders the information they
need, when they need it.
This initiative has 5 pillars.
1) Explain our company: As Alpha Growth continues to grow and
adapt we need to ensure we provide everyone with a complete
overview of who we are and what we do as a company.
2) Promote our achievements: We have already achieved a huge
amount with lots more to come, we now need to actively promote our
achievements to the investment community.
3) Communicate our strategy: We have a well-defined growth
strategy; we need to build this into an investment proposition and
communicate it to both current and future shareholders.
4) Attract Institutional Investors: Our shareholder base is
primarily retail based currently and we believe we can further
support the share price by attracting institutional investors onto
our share register.
5) Engage our shareholders: We have an engaged and active
shareholder base. We want to build upon this by ensuring we provide
a platform to give you a voice and to have your questions
answered.
Please keep checking our Investors Relations page on
www.algwplc.com for updates on these 5 pillars.
Chairman's statement
Gobind Sahney, Executive Chairman, stated "We have been
progressing the 2B strategy internally over the last 12 months and
are making great progress against our objective of managing over
$2bn of AUM by 2025 in both the fund and insurance segments of the
business.
We are very pleased with the foundational work we have brought
to PLAC since the acquisition and it is now well positioned to
build its AUM organically, whilst also supporting our buy strategy.
Interest in the BlackOak Alpha Growth Fund is at an all-time high,
driven by recent world events and investors looking for an asset
class which is not impacted by the volatility of stock
markets."
Gobind continued, "2022 will be yet another transformative year
for Alpha Growth and we expect our fund and insurance business to
grow substantially. I look forward to keeping our shareholders
up-to-date on progress and will provide a further update before the
end of Q1."
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
BlackOak Alpha Growth Funds +1 949-326-9799
www.boagf.com
Arden Partners plc +44 (0) 20 7614 5900
Ruari McGirr / Alexandra Campbell-Harris
(Corporate Finance)
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 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.
About BlackOak Alpha Growth Fund
The Fund was established by two highly experienced longevity
asset management companies. The Fund invests in life settlements,
is a Cayman LP with a tax efficient Master/Feeder structure in an
open-ended format with quarterly redemptions. The Fund seeks to
provide well-diversified, non-correlated returns. The Fund aims to
achieve this objective through the acquisition of secondary and
tertiary Life Settlement policies that will be structured and
purchased to mitigate longevity risk and other investment and
business risks and where the Company's expertise can add value.
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