2022 Annual Recap and Fund Results

RNS Number : 9229R

Alpha Growth PLC

06 March 2023

 

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (as amended). 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")

2022 BlackOak Alpha Growth Fund performance update and recap of the year

Alpha Growth Plc (LSE: ALGW and OTCQB: ALPGF), a leading financial services specialist in the growing longevity asset class and insurance linked asset management, is pleased to provide a general update on the Company's activities within its fund and insurance business segments and a review of achievements in 2022.

2022 was yet another transformational year for Alpha Growth plc,  a year which saw the BlackOak Growth Fund deliver consistent returns far in excess of major stock market indexes and where the Company completed and successfully integrated two further acquisitions into the group. The Company also launched a new Fund during 2022 which introduced a new category of investor into the group. In addition to the Company delivering on its strategic aims for the year, it also increased assets under management ("AUM") to circa $700m - a 70x increase from January 2020 and more than doubling in the past 12 months alone.

Alpha Growth's 2B Plan

At the beginning of 2022, Alpha announced its strategic goal to reach $2 billion in AUM by 2025. This ambitious but achievable target demonstrates the Company's drive to establish itself as an industry leader.

Over the last year, Alpha has made substantial progress towards achieving its 2025 goal and demonstrated the efficacy of its business model. Through its successfully completed acquisitions, a strong pipeline of future acquisitions, and expected organic growth, Alpha is positioning itself to surpass expectations in growing its AUM and in doing so is creating an organisation of real scale which the Board anticipates will be highly cash generative once its goals are met. 

Head of Affiliated Funds Appointment

On 26 September 2022 Chad Schafer began his new role as Head of Affiliated Funds.  Chad is a recognised expert in structured securities and is responsible for the growth and strategic direction of the Alpha funds.

Chad brings invaluable expertise and experience to the team and has been making significant progress since his appointment.

Change of Adviser

In October 2022 the Company announced the appointment of Allenby Capital Limited ("Allenby Capital") as the Company's sole broker. 

Allenby Capital advises or acts as a broker for more than 70 corporate clients who are listed on the AIM, Standard List or AQUIS markets.  This brings Alpha Growth access to a diverse range of investors, including institutional investors, family offices, private client brokers and high net worth individuals.

The appointment is an exciting development that marks a significant shift in strategic opportunities, as Allenby Capital's proactive approach and shared passion for Alpha Growth's future promises to bring about positive change.

Broker Note

The Company is pleased to note that its new broker, Allenby Capital, has recently initiated coverage of Alpha Growth with the publication of a detailed research note. This research note provides a very good overview of the Company and will be a useful tool when introducing new investors to the Company. The note can be found at: https://www.allenbycapital.com/client/alpha-growth-plc

Warrants

The Company would like to confirm that, as announced on 11 February 2021, pursuant to a placing to raise £3.75 million, the Company granted 187,500,000 warrants ("Warrants") to the placees, exercisable at a price of 3 pence per share, for a period of 24 months following the date of grant, being 15 March 2021.

Due to circumstances whereby the prospectus was not published and the admission for the shares issued was not completed until 21 December 2021, the Directors have resolved that, following the statements made in announcements in relation to the same, the final exercise date for the Warrants relating to the 2021 placing be amended so that such references in the warrant instrument to the final exercise date for the Warrants be fixed at 21 December 2023. All other terms of the Warrants remain the same.

These Warrants can, if exercised by warrant holders, provide the Company with a useful source of additional cash which may be used to further accelerate the growth of Alpha.

The Alpha Funds

Alpha Alternative Assets Fund - Interval Fund

On 28 September 2022, the Company announced that its wholly owned subsidiary Alpha Growth Management LLC ("AGM") had been named investment manager of the Alpha Alternative Assets Fund with current assets under management of ~$5 million.  The Alpha Alternative Assets Fund is a unique longevity-based interval fund, providing access to institutional-grade assets for (US-Based) mainstream investors through its low minimum investment size of $2,500 and the ability for prospective investors to buy-in daily.  It offers a 5% annual dividend yield making it attractive to both income and capital investors.

The fund charges a 1.5% management fee earned by AGM.  Alpha's team is actively repositioning the fund to focus on longevity assets to ensure current and prospective investors into the fund can enjoy the benefits of this uncorrelated and low volatility asset class.

(Please note that this is not a solicitation to invest in the Alpha Alternative Assets Fund and restrictions do apply for US and non US investors)

BlackOak Alpha Growth Fund returns

The Company is pleased to report that the BlackOak Alpha Growth Fund returned 7.20% during 2022. During this period it reported positive returns every month and won multiple awards from Barclay Hedge for its performance.

Since inception in September 2019 up until end December 2022, the fund has produced returns of over 27% compared with the FTSE 100 which has only increased by circa 2% over the same period. Over the same period the fund recorded positive returns in all but one month with zero negative returns versus the much more volatile FTSE100 which recorded losses in 5 months.

(Please note that this is not a solicitation to invest in The BlackOak Alpha Growth Fund which only available to accredited and institutional investors.)

Accretive Acquisitions to the Group

Guernsey Life Insurance Company

On 6 December 2022 the Company announced the successful completion of the acquisition of Old Mutual International (Guernsey) Ltd and this Guernsey based insurance company has since been renamed Alpha International Life Assurance Company (Guernsey) Ltd. which, at that time, added ~$275m of AUM to Alpha Growth.

This acquisition provides an excellent platform for Alpha to offer both life insurance-based wealth management products and life insurance linked funds, either originated by Alpha or through other partners, to a broad base of European based UHNWI, family offices and institutions.

Havelet Assignment Company Ltd

The Company reported on 12 December 2022 that it had successfully finalised the acquisition of Havelet Assignment Company Ltd.  This Barbados based financial services company is a strategic acquisition which has added $9m AUM to the Company. 

This strategic acquisition not only expands Alpha's abilities to accumulate assets under administration but also provides a complementary source of business to Alpha's Providence Life Assurance Company ("Providence").

This strategic acquisition carries a two-fold benefit to Alpha's business.  Firstly, it bolsters its ability to accumulate assets under administration, thus expanding capabilities in this area.  Secondly, the acquisition brings with it a complementary source of business which can serve as an additional revenue stream for Providence.  Overall, the acquisition has the potential to contribute significantly to the growth and development of Alpha's business.

Gobind Sahney, Executive Chairman, commented: "2022 was a very productive year for Alpha Growth which saw AUM almost doubling to circa $700m, bringing us significantly closer to achieving our stated goal of managing over $2bn of AUM by 2025. During the year, we completed two significant acquisitions and launched a significant new fund which we expect to attract a new category of investor into the Company."

"We start 2023 with a robust list of exciting opportunities which will allow us to continue to rapidly scale the organization both organically and through further acquisitions, none of these opportunities are expected to require a raise. Throughout 2023, we will also look to bolster our team of experts to support our 2B plan and ensure we continue to grow AUM and revenue significantly."

** ENDS **

For more information, please visit www.algwplc.com or contact the following:

Alpha Growth plc	[phone]
Gobind Sahney, Executive Chairman	[e-mail]
Allenby Capital Limited	[phone]
Amrit Nahal (Sales and Corporate Broking)
Nick Athanas / Piers Shimwell (Corporate Finance)
UK Investor Relations - Mark Treharne	[e-mail]

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.

 

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