REG - Alpha Growth PLC - Business Update - 2022 Focus and the 2B Plan

Alpha GrowthAnnouncement

28/02/2022 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:20220228:nRSb9386Ca&default-theme=true

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
(http://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 (mailto:info@algwplc.com)

 BlackOak Alpha Growth Funds                                   +1 949-326-9799

                                                               www.boagf.com (http://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 (mailto: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.

 

ENDS

 

 

 

 

 

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  UPDTFMITMTTTBMT