Alpha Growth Share Discussion Threads

[moneymunch] 08/2/2020 09:33

The life settlement market continued to grow in 2019, and all indications are that this trend will continue.

Life settlements involve life insurance policyowners selling their policies to secondary buyers. Settlement purchasers are mostly financial institutions and hedge funds, but additional buyers have emerged in this industry.

Not only are blocks of life settlement policies attractive to institutional buyers, but they have also become popular as an alternative investment, so there is a flurry of capital available to purchase eligible policies. Buyers are purchasing policies today at lower anticipated ROI’s than ever before. According to the Life Insurance Settlement Association, more than 250,000 policies with a combined face amount of over $57 billion is lapsed annually by U.S. seniors over age 65, and these are just the permanent plans. If term life is added, the total exceeds $112 billion.

[moneymunch] 08/2/2020 09:03

Every chance that CF closure will happen sooner , rather than later imho as per "timely manner" expectations....... the Asset Manager has had at least two months already to complete the necessary documentation, not to mention the many months of engagement on agreement. Gla ;-)

2/12/19

After many months of engagement, the Company is now in the final stages of securing a revolving credit facility up to a $100,000,000 with a leading UK asset manager. The discussions have progressed well whereby the Company and Asset Manager have now agreed life settlement valuation methodologies and acquisition strategies.

This facility will be a key element to enable Alpha to aggregate SLS policies to be vended into investors, in a sufficient transactional value that is relevant to the underlying buyers, whether that be a bond offering or investment portfolio. The Company expects to be able to complete the necessary documentation in a timely manner and looks forward to updating the market on closing of the facility.

[big brother8] 08/2/2020 00:19

GOING TO END IN TEARS.......................

TRUST BB8. YOU ALL KNOW HE SPEAKS ONLY OF THE TRUTH.

IN BB8 WE TRUST

[2mex] 07/2/2020 22:19

We are all looking towards that slam dunk $100m revolving credit facility (RCF) but Alpha only actually need an RCF of $25m initially.

Looking at a projected year 1 assets under management (AUM) of $100million this could be achieved with an RCF of $25million. To achieve projected addition of $250million AUM in year 2 it would need the RCF to increase to $62.5million.

The limit of the credit facility is performance. Performance? We have, perhaps THE best market maker for life settlements, Danny Swick and we have the well established Austin King, with extensive connections for sales.

The market is already increasing rapidly and is expected to take an upturn due to awareness of the opportunity for life settlements and the infusion of internet savvy (marketing-targets) baby boomers. An increase in projected business will drive an increase in credit facility.

[2mex] 07/2/2020 21:56

From what Giles has kindly reported back, Gobind Sahney and Danny Swick have completed the application process. We know that the model has been approved. The paperwork has to tour around the departments / committees for sign-off. The time for that process is out of Gobind's hands. He is acutely aware not to say 'soon'. Personally, I provide services for a company who take 3 weeks even for an item of £100. When we are talking $100million it is easy to understand the time delay caused by committees but the model agreement is there and this is an exciting opportunity for the lender who is also intending to invest...and perhaps down the road buy out.

[moneymunch] 07/2/2020 16:00

Courtesy of gilesfitzh from Lse , and very much appreciated. Gla Holders ;-)

gilesfitzh

Posts: 168

Price: 1.95

No Opinion
The AGM :)Today 14:23

Well I have just got home and will give my reading of what was said, inferred and 'no comment'ed.
The AGM was attended by the following: GS, DS and Jason Sutherland for ALGW. 2 from Link Asset Services, the Registrars, 1 from Novum, ALGW's broker and 2 others, me and another PI who lurks on here but doesn't comment and who shall therefore remain nameless.
The resolutions were read out and voted on and, unless there were postal votes that no one mentioned, all resolutions were passed unanimously.
Then GS opened the meeting to questions.
There were questions which related to the mechanics of how AUM gets put together in BOAGF and, to be honest I'm not sure that I understood exactly what investors in BOAGF are actually buying. I think the term used was nil or zero bonds. Basically what happens is that DS acquires Life policies from several possible sources. These are the primary market which is the actual policy holder who doesn't want/need to continue the policy and wants a lump sum in exchange for transferring the policy. This is NOT the main source as obviously DS is not going to be contacted by individuals. The next is the secondary market which is that DS buys bundles of Life policies that have already been sold by the policy holder to a third party who, for whatever reason, wants to sell on some or all that they previously bought. There is also the tertiary market which is existing funds who for whatever reason need to offload some of the life policies in their fund as the fund is out of balance with what they marketed. At the moment the second of these is DS's focus as ALGW is too small atm to be taken seriously by the major insurance companies but once ALGW have a couple $100 million in BOAGF this will change.
Colva will shortly no longer be part of the equation and I got the impression that the 2 million shares is in lieu of the work that Mr Rabello did last year for ALGW. I guess that if ALGW need more from Mr Rabello he'll get paid for the work rather than being an employee or contracted. GS was keen to emphasise that he is all about keeping costs down.
Which leads me on to SLIM. GS explained that he and DS have know the founder of SLIM for 10 and 15 years respecively and SLIM are basically providing the 'back office' for BOAGF, running offered policies through the 'model' to value them, capitalising the finance and premium costs and making them into bonds for offer to investors. Then making sure that premiums are paid and keeping an eye on obituaries.
The RCF: GS advised that this is not the primary focus for him and DS as they have done what they had to do and it is now going through a laborious round of committees of different departments of the 'lender'. We are dealing with the London office of a US based asset manager who will also be investing in BOAGF after the RCF is in place. (Blackstone?) OOPs running out of space will continue :)

GS said that the RCF will be signed off "soon" then said "maybe I shouldn't say soon as people examine his words too closely. So I don't think it will be in the next couple of weeks. GS and DS are currently en-route to places in Europe for more meetings then back to the States. GS also said that the RCF is not the be all and end all of ALGW and he doesn't think they will need it for very long and that we should not focus on it too much. He reiterated that ALGW should break even this calendar year and to do this ALGW only need between $75 and $100 million AUM so maybe we shouldn't expect $100s of millions of AUM too quickly.
Overall GS and DS were open and answered as much as they were legally allowed to do and I'm still very positive about the future but it may take a little longer than some were hoping.

There should be an RNS next week but it will be to update the market on the AGM and maybe some small news details but not the RCF. GS also said he would do another VOX pod cast at some point.

[moneymunch] 07/2/2020 15:58

Lol...i never said that we would get news at the AGM, but there was every chance of a 7am RNS, as is the case at any other working day at 7am when news is expected or over due. ;-)

[7rademark] 07/2/2020 15:54

Like there was every chance there would be a 7am rns, or news at the agm?

[moneymunch] 07/2/2020 15:49

Lol 7trader, don't judge me by your standards...ha ha ha....Gla ;-)

ps every chance we'll get an UPdate next week imho. ;-)

[7rademark] 07/2/2020 15:45

Ah I c. And as for mm, probably gone now.

[lucakane] 07/2/2020 15:43

Yes...that was a bit tongue in cheek! Apologies.Gla

[7rademark] 07/2/2020 15:36

There is no news next week, just the agm points, read lse.

[lucakane] 07/2/2020 15:21

Let's hope it's really good news next week ?

[divmad] 07/2/2020 11:53

It will be all about Danny Swick's distribution connections and selling skills.

[moneymunch] 07/2/2020 11:32

More from GHoliday.

Certainly the impression relayed to me. Just need to keep in mind there are many working pieces so these things aren't quick to set up. Hopes are for initial AUM of £25M for starters. Very much looking forward to Monday. Think it speaks volumes the facility provider will also be investing in the fund.

Once set up, you'd like to think bigger funds and family offices will quickly follow suit.

[moneymunch] 07/2/2020 11:29

Certainly seems that way bullrun. Gl :-)

Coutesy of GrahamHoliday on Lse





All resolutions passed

Just heard from an attendee all resolutions passed, update on progress and CF likely to be Monday as BOD are traveling today.

Seemed very positive and encouraging about progress made....

[bullrun1] 07/2/2020 10:46

Good bit of feedback on the LSE board guys.

[moneymunch] 07/2/2020 09:43

Buying volume picking UP, good news coming sooner or later...Gl :-)

[moneymunch] 06/2/2020 18:15

That's fair enough 7trademark, but they flew into London Tuesday afternoon, which potentially would have given them two days for negotiations , and so the CF deal could have been closed this afternoon, and then it would take time to compile and then log the RNS for a Friday 7am release.

Obviously, this is very much wishful thinking, but the CEO did confirm that negotiations would progress either side of Christmas, and they have brought the AGM forward by a month, presumably because all the team are in London now and hopefully because they were in final negotiations for the CF........not long to find out.Gl ;-)

[bullrun1] 06/2/2020 17:22

I tend to agree with some of the posters on LSE board..I think there is some precondition in one of the resolutions needs passing in order to get the rubber stamp on the CF.. Either way it will all slot into place im sure :)GL

[7rademark] 06/2/2020 17:12

Mm what I'm saying is that any deemed market sensitive news should be released immediately by rns, the agm has been brought forward, yes, but you can't sign a 100m credit facility on Monday and wait till Fridays agm to announce it. A company can however state a time frame during the agm for a likely event, or skirt around what they think is deemed price sensitive.I'd expect the agm to be positive, they mostly are, but if they rns an all resolutions passed get ready for a buying opportunity.As mentioned I hope I'm wrong and perhaps they have signed an agreement tonight knowing it can be announced tomorrow to coincide with the meeting.

[moneymunch] 06/2/2020 16:40

and plenty of Champagne with any luck, otherwise there'll be a rather glum and disgruntled audience who have got up early to get to Canary Wharf for 8am, if no news is forthcoming. Gl and fingers firmly crossed!!! :-)

[bullrun1] 06/2/2020 16:32

They are installing the share price screen at AGM right now, ready for morning.. bacon butties, fresh coffee, Haribo and loads of Carlsberg..

[moneymunch] 06/2/2020 16:24

Ps the majority of price information news will be known the day before the RNS is released...and depending on content, would obviously take time to compile before it's logged for a 7am release for the following day. Gl :-)