RE: Big buys31 Dec 2019 11:47
From another BB. Best post I’ve ever read. This has to be one of the best opportunities ever.
A few points to summarise:
1. Alpha has probably the top life settlements market maker, Danny Swick, with $8Billion of trading experience.
2. Alpha with SLIM has in-house actuarial expertise specific to life policies - a quality not found in usual settlement businesses
3. The above two points are validated in the progress towards $100million credit facility
4. Points 1&2 are inlet and processing. Austin King, with extensive connections has been brought in for the outlet; the sales.
5. KPMG has validated a 16.2% annualised return on this uncorrelated asset
6. "this uncorrelated asset": the asset class is not affected by general market
7. Alpha has structured a tax-efficient system which will bring in global investors
8. Black Oak fund has already received commitments for seed capital of $15 million
9. The market is absolutely massive at $19Trillion with $57Billion policies lapsing each year
10. Only $2.8Billion of policies are settled each year. The $57Billion lapsing is there to be taken.
11. The market will climb over the next 10years as baby boomers retire
12. Note the wave retiring is more tech-savvy, internet dependent: ideal for targeted marketing
13. Point 12 also means that social media / marketing will build life settlement awareness
14. Perhaps THE key point: Life settlement is a great option, far better than surrender or lapsing
15. The $100million credit facility could be used to buy $500m of face value and repeated 4x per year
16. Alpha has assembled the best in class to manage this specialist business
17. Legislation is already present in 6 states to ensure life policy holders are made aware of the settlement option.
18. 2019 Annual report: "..For 2020, we expect to be generating material revenues and as 2019 closes, at the date of this report, the company has approximately £450,000 of cash balances, so the group is very well positioned as we move into this new phase.."
£450,000 cash balance going forward
$100million revolving credit facility about to be inked with asset manager.
Sign In
Follow the stocks
