London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Cheers Starbucks. I’ve looked into it and also had a chat with Samantha at Alpha. Seems quite decent. GLA
It's a fund . Under management assets .
I thought alpha were selling the policies in for commission like they said in their prospectus. So are they buying them and holding onto them. ?
Reloads every quarter. So this could be valued so high.
It's 4m cap.
What would a third party have to pay with 400m under management.
4m ???? I think not BUY
Company valuation.
What would a third party have to pay to acquire the business.
Let's look 100m cash. Has the buying power of significantly more.
Typical policies bought at 60 percent discount .
So 160m under management. Then add in the revolving part of the deal. Reload every quarter. You can quickly see that percentage s of 10 percent are not the only thing on offer.
So 160m and a m cap of 4 m what does that tell you .
Answers on a postcard
I thought it was the target return for the people who buy them from Alpha. Alpha say they get 1 to 2 % plus 20% of anything over the target of 7%. Which would be another 1% or so.
Be nearly 10 percent with bonus maybe more .
Peers I've looked at with 800 m under management and 30m per annum are valued at 666m .
So first revolving contract should see us north of 100m.
So what % are they making from the policies. From what I can see it’s only a couple of %. Does anyone have a link to figures. The only one I see if from their prospectus.
Oh I am invested here alright - but clearly haven't done much research !
Steve. If a company like that was interested in alpha .
Then put there backing to it .
It would be a game changer, the market would take it very seriously. Companies like that don't put their name on, unless it's going to seriously effect it's balance sheet.
Strong buy
2/12/19
The addition of the ..warehouse.. we believe will have a material impact on our business going forward.
I and the team will be in London before and after the holiday breaks to progress the above and our other strategies. I look forward to updating the market shortly on the other aspects of the business as we further validate and improve the offering across our various revenue channels, with the addition of new personnel we are seeing increasing appetite and interest to the funds and will be updating the market in the very near term.
Steve205 - the Black Oak Alpha Growth Fund is nothing to do with this company
Black Oak Alpha Growth Fund.....KPMG auditors, rumours of exceptional returns (unconfirmed) DYOR
If you are invested Midas could I respectfully advise that you first of all read the prospectus for the company , from the website and secondly read the rns carefully of early this week . Good luck ....
It seems a decent price with maybe a chance of more growth but even if they were to say use their full $100m available loan. Then to go and sell their newly purchased policies within a year or so it will only amount to a couple of million over the next year or so which after taking off the half a million wages / running costs each year won’t be a huge game changer. Is there something else in the pipeline ? Appreciate any info.
Ive done the research and been here 2 years so...
https://www.investmentweek.co.uk/investment-week/feature/1384625/life-settlement-funds
They should have a 3 minute pitch
http://www.algwplc.com/wp-content/uploads/2019/05/ALGW-Prospectus-2019-final_289168616_1.pdf
Excellent summary SB, big in the US relatively new in UK.
Rajiv Rebello(Chief Actuary)
Rajiv Rebello, is the Chief Actuary & Director of Investment Analytics of Alpha Growth, PLC. Mr. Rebello is a Fellow of the Society of Actuaries (FSA) and a Chartered Enterprise Risk Analyst (CERA). Prior to joining the firm, he was the founding Principal and Actuary of Colva Insurance Services which provides insurance consultancy that helps structure investments in the life settlement space. Prior to starting Colva, Rajiv worked in the Risk Finance Department of Chartis helping to manage and evaluate the risks of a $4 billion dollar alternative asset portfolio of life settlement policies with $18 billion in death benefit. Prior to working at Chartis, he worked in the Pricing and Mortality Departments of New York Life where he helped with the pricing, design, system illustration, and profitability analysis of New York Life’s Universal Life and Variable Universal Life products as well as conducting analysis and review of New York Life’s mortality and lapse experience. Mr. Rebello received his Bachelor of Science degree in Biology from Stanford University.
The business is about senior life settlements (SLS), not buying and selling life insurance policies.
Anyone who has bought a life insurance policy as mortgage cover or funds for the family etc, will know that often the need for the policy disappears as you get older. The mortgage gets paid off early or the kids are somehow richer than you are. Medical improvements extend your life.
At some point you say, “why the hell am I paying these policy premiums when I don’t need it?” Then you try to cancel the policy. You might get nothing in return or 10% at best.
Along comes an offer from a SLS company which says, “I’ll give you 30% of the face value to take the policy over and assign it to us”. The SLS company pays the regular premiums until you die and then collects 100% of the insured amount. That results in double digit returns for the SLS company, but eliminates windfall income from life insurers to balance the books.
You get a big wad of cash to spend as you wish now, while you are still alive … Holiday home in Florida or whatever.
These SLS Deals can be packaged together into bundles which can be sold into the bond market or wherever as 10% + return investments which are unaffected by the state of the world economy or the wider bond market, “uncorrelated” as they say.
Alpha is acting as an intermediate consultant on these deals and enabling the money for the deals, all of which carries a fee profile as income from them. Those fees are the revenue. That is how I see the business.
The Warehouse SPV is there as a revolver to package SLS settlements and sell them on to investment managers looking for high returns.
It thrives it USA, and is now being offered as an investment opportunity in UK.
Does that answer it Mr Wolf?
Wolf you need to do your own research but then again you wont because you're just here to disrupt the board. Thankfully you'll be gone soon enough
The facility is there to buy up bulk policy’s and then utilise them in the fund for high net worth investora
Can you explain how they make the 10 percent return in detail?