REG - Alpha Growth PLC - 2022 Annual Recap and Fund Results

Alpha GrowthAnnouncement

06/03/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230306:nRSF9229Ra&default-theme=true

RNS Number : 9229R  Alpha Growth PLC  06 March 2023

The information communicated within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulation (EU) No.
596/2014 as it forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 (as amended). 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")

2022 BlackOak Alpha Growth Fund performance update and recap of the year

Alpha Growth Plc (LSE: ALGW and OTCQB: ALPGF), a leading financial services
specialist in the growing longevity asset class and insurance linked asset
management, is pleased to provide a general update on the Company's activities
within its fund and insurance business segments and a review of achievements
in 2022.

2022 was yet another transformational year for Alpha Growth plc,  a year
which saw the BlackOak Growth Fund deliver consistent returns far in excess of
major stock market indexes and where the Company completed and successfully
integrated two further acquisitions into the group. The Company also launched
a new Fund during 2022 which introduced a new category of investor into the
group. In addition to the Company delivering on its strategic aims for the
year, it also increased assets under management ("AUM") to circa $700m - a 70x
increase from January 2020 and more than doubling in the past 12 months alone.

Alpha Growth's 2B Plan

At the beginning of 2022, Alpha announced its strategic goal to reach $2
billion in AUM by 2025. This ambitious but achievable target demonstrates the
Company's drive to establish itself as an industry leader.

Over the last year, Alpha has made substantial progress towards achieving its
2025 goal and demonstrated the efficacy of its business model. Through its
successfully completed acquisitions, a strong pipeline of future acquisitions,
and expected organic growth, Alpha is positioning itself to surpass
expectations in growing its AUM and in doing so is creating an organisation of
real scale which the Board anticipates will be highly cash generative once its
goals are met.

Head of Affiliated Funds Appointment

On 26 September 2022 Chad Schafer began his new role as Head of Affiliated
Funds.  Chad is a recognised expert in structured securities and is
responsible for the growth and strategic direction of the Alpha funds.

Chad brings invaluable expertise and experience to the team and has been
making significant progress since his appointment.

Change of Adviser

In October 2022 the Company announced the appointment of Allenby Capital
Limited ("Allenby Capital") as the Company's sole broker.

Allenby Capital advises or acts as a broker for more than 70 corporate clients
who are listed on the AIM, Standard List or AQUIS markets.  This brings Alpha
Growth access to a diverse range of investors, including institutional
investors, family offices, private client brokers and high net worth
individuals.

The appointment is an exciting development that marks a significant shift in
strategic opportunities, as Allenby Capital's proactive approach and shared
passion for Alpha Growth's future promises to bring about positive change.

Broker Note

The Company is pleased to note that its new broker, Allenby Capital, has
recently initiated coverage of Alpha Growth with the publication of a detailed
research note. This research note provides a very good overview of the Company
and will be a useful tool when introducing new investors to the Company. The
note can be found at: https://www.allenbycapital.com/client/alpha-growth-plc
(https://www.allenbycapital.com/client/alpha-growth-plc)

Warrants

The Company would like to confirm that, as announced on 11 February 2021,
pursuant to a placing to raise £3.75 million, the Company granted 187,500,000
warrants ("Warrants") to the placees, exercisable at a price of 3 pence per
share, for a period of 24 months following the date of grant, being 15 March
2021.

Due to circumstances whereby the prospectus was not published and the
admission for the shares issued was not completed until 21 December 2021, the
Directors have resolved that, following the statements made in announcements
in relation to the same, the final exercise date for the Warrants relating to
the 2021 placing be amended so that such references in the warrant instrument
to the final exercise date for the Warrants be fixed at 21 December 2023. All
other terms of the Warrants remain the same.

These Warrants can, if exercised by warrant holders, provide the Company with
a useful source of additional cash which may be used to further accelerate the
growth of Alpha.

The Alpha Funds

Alpha Alternative Assets Fund - Interval Fund

On 28 September 2022, the Company announced that its wholly owned subsidiary
Alpha Growth Management LLC ("AGM") had been named investment manager of the
Alpha Alternative Assets Fund with current assets under management of ~$5
million.   The Alpha Alternative Assets Fund is a unique longevity-based
interval fund, providing access to institutional-grade assets for (US-Based)
mainstream investors through its low minimum investment size of $2,500 and the
ability for prospective investors to buy-in daily.  It offers a 5% annual
dividend yield making it attractive to both income and capital investors.

The fund charges a 1.5% management fee earned by AGM.  Alpha's team is
actively repositioning the fund to focus on longevity assets to ensure current
and prospective investors into the fund can enjoy the benefits of this
uncorrelated and low volatility asset class.

(Please note that this is not a solicitation to invest in the Alpha
Alternative Assets Fund and restrictions do apply for US and non US investors)

BlackOak Alpha Growth Fund returns

The Company is pleased to report that the BlackOak Alpha Growth Fund returned
7.20% during 2022. During this period it reported positive returns every month
and won multiple awards from Barclay Hedge for its performance.

Since inception in September 2019 up until end December 2022, the fund has
produced returns of over 27% compared with the FTSE 100 which has only
increased by circa 2% over the same period. Over the same period the fund
recorded positive returns in all but one month with zero negative returns
versus the much more volatile FTSE100 which recorded losses in 5 months.

(Please note that this is not a solicitation to invest in The BlackOak Alpha
Growth Fund which only available to accredited and institutional investors.)

Accretive Acquisitions to the Group

Guernsey Life Insurance Company

On 6 December 2022 the Company announced the successful completion of the
acquisition of Old Mutual International (Guernsey) Ltd and this Guernsey based
insurance company has since been renamed Alpha International Life Assurance
Company (Guernsey) Ltd. which, at that time, added ~$275m of AUM to Alpha
Growth.

This acquisition provides an excellent platform for Alpha to offer both life
insurance-based wealth management products and life insurance linked funds,
either originated by Alpha or through other partners, to a broad base of
European based UHNWI, family offices and institutions.

Havelet Assignment Company Ltd

The Company reported on 12 December 2022 that it had successfully finalised
the acquisition of Havelet Assignment Company Ltd.  This Barbados based
financial services company is a strategic acquisition which has added $9m AUM
to the Company.

This strategic acquisition not only expands Alpha's abilities to accumulate
assets under administration but also provides a complementary source of
business to Alpha's Providence Life Assurance Company ("Providence").

This strategic acquisition carries a two-fold benefit to Alpha's business.
Firstly, it bolsters its ability to accumulate assets under administration,
thus expanding capabilities in this area.  Secondly, the acquisition brings
with it a complementary source of business which can serve as an additional
revenue stream for Providence.  Overall, the acquisition has the potential to
contribute significantly to the growth and development of Alpha's business.

Gobind Sahney, Executive Chairman, commented: "2022 was a very productive year
for Alpha Growth which saw AUM almost doubling to circa $700m, bringing us
significantly closer to achieving our stated goal of managing over $2bn of AUM
by 2025. During the year, we completed two significant acquisitions and
launched a significant new fund which we expect to attract a new category of
investor into the Company."

"We start 2023 with a robust list of exciting opportunities which will allow
us to continue to rapidly scale the organization both organically and through
further acquisitions, none of these opportunities are expected to require a
raise. Throughout 2023, we will also look to bolster our team of experts to
support our 2B plan and ensure we continue to grow AUM and revenue
significantly."

** ENDS **

For more information, please visit www.algwplc.com (http://www.algwplc.com) or
contact the following:

 

 Alpha Growth plc                                   +44 (0) 20 3959 8600
 Gobind Sahney, Executive Chairman                  info@algwplc.com (mailto:info@algwplc.com)
                                                    +44 (0) 20 3328 5656

 Allenby Capital Limited
 Amrit Nahal (Sales and Corporate Broking)
 Nick Athanas / Piers Shimwell (Corporate Finance)
                                                    ir@algwplc.com (mailto:ir@algwplc.com)

 UK Investor Relations - Mark Treharne

 

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.

 

 

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 (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCJIMATMTTMBFJ