The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
HullFc the company was not in the postion to deliver 16months ago as it is now. Operationalising the model has taken a long time for the company to complete but as of the last fiscal year it has been completed. That was the risk that was associated with the business. Now that has been cleared I see very little risk and have no doubts that the highly qualified and experienced board will be able to deliver.
The financial industry are 'salivating' at prospect of life settlement investments as indicated in my posts. The regulatory hurdles as you mentioned have been cleared as of the last fiscal year. The purpose of the 'informative' posts is to pass the reasoning as to why this company should be trading closer to 4/5p based on current merit.
Companies involved in life settlements which are listed do not remain in the miniscule market cap level for a long time. There are endless examples from comapnies on the Nasdaq such as National Western Life Group which has a Market cap of $972 million.
Two large life settlement investment funds were announced in 2018. Each of these funds raised nearly $900 million, with significant capital pouring into the asset class from institutional investors such as pension funds and family offices. The Conning study noted that growing investor interest in the category reflects “the stability of the life settlement landscape.” In the year ahead, we anticipate that more capital will flow into life settlements, especially as institutional investors seek out returns that are not correlated to the performance of the increasingly volatile equity markets.
Agents and advisors who may have watched the maturation of the life settlement industry with a skeptical eye would be wise to give life settlements a fresh look in 2019. The industry is now well-regulated, enjoys a healthy flow of capital to fund policy purchases, and is rooted in sound business practices — including policy underwriting — that are powered by advanced technology systems.
The life settlements market could experience a double-digit compound gross market annual growth rate (CAGR) over the next decade, according to a forecast from investment management consultancy Conning.
The company said in its annual study on the life settlements market that 2018 saw the it building on recent year’s of growth, with the third consecutive year of increasing annual volumes giving it a foundation for continued market expansion going forwards.
“Several life settlement funds announced the launch of new funds or the successful closing of funds which reflects the continued interest of capital in the asset class,” commented Scott Hawkins, a Director, Insurance Research at Conning.
“Looking beyond 2019, key drivers are favorable for continued growth in the life settlement market. Life settlements remain an appealing alternative asset class to investors seeking higher potential returns, relative to the current low interest rate environment. In addition, this year’s study examines the positive impact wider consumer marketing could have on growth.”
In fact, Conning is particularly bullish on the prospects for the life settlement market at this time, giving a ten-year forecast that calls for an impressive double-digit CAGR in the annual gross market volume of settlements.
By 2028, Conning expect the market to have seen an impressive $212 billion of life settlements, while on an annual issuance basis the average of its ten-year forecast for the annual volume of new life settlements is roughly $6.4 billion.
Vida Capital is a fund involved in life settlements which started operating around 7 years ago, they now have over $4bn funds under managment, they were recently bought out by a private equity firm. The size and opportunity within this sector is endless. The more time spent researching this company, business set up and sector, increases my confidence of this being very quickly able to attract huge funds. The only hurdle for this company was operationalising the business of which since the end of the last fiscal year they completed. The only listed life settlement company in the UK, this will offer investors buying here at 2p a remarkable return on their investment. Once the deals begin to flow, they will not stop, it is very easy to understand why Danny Swick has a 100m valuation target.
Positive move over the last few days, despite this I still maintain that 4/5p is where this should be valued at as things stand. Therefore, plenty of upside still to be had from here. On top of that as mentioned previously the company has set it self up to put itself in prime position to execute and deliver on deals. Still maintain my initial target of 20m valuation which is around 13-16p.
Yes. As the latter posts show the board members individually are experienced in this sector that Alpha Growth are involved in. The likes of Danny Swick have been involved in this for the majority of their careers, and has closed over $4billion of such deals. My point is now that the structure of the company has reached this stage, there is no reason why the accomplished board members would not be able to complete deals in this sector for Alpha Growth.
Mr. Swick served as Founder and Chief Executive Officer for Life Distributors of America, LLC (LDA), a life settlement market maker specializing in the distribution of longevity risk insurance products to institutional investment portfolios. While at LDA, Mr. Swick was responsible for the closing of over $4 billion in life settlements.
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 insurance policies with $18 billion in death benefit. This is the Chief Actuary for Alpha Growth. The board clearly lacks no experience in attaining funds and closing deals in this sector.
Johnny my first target which, is very realsitic considering the strucuture and set up of the company is 20m valuation which is around 10-15p. As mentioned before, Danny Swicks target is 100m market cap, which is not an unreasonable target, due to the size of the tickets and sector of life settlements. Once my first target is hit I will be re-evaluating as this company has the know how to become the a leader for life settlements within the European markets.
It has been a good move and 2p still values this company under 3m. I believe in the credentials of the board and that they will deliver as this is what they have been doing for their whole careers and that my target of 20m market cap will be very easily reached. GLA