BlackOak Alpha Growth Fund 2021 Year End Results

RNS Number : 3897A

Alpha Growth PLC

02 February 2022

 

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 (as in force in the United Kingdom pursuant to the European Union (Withdrawal) Act 2018). 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")

BlackOak Alpha Growth Fund managed by the Group continues its Growth and Performance

Alpha Growth Plc (LSE: ALGW and OTCQB: ALPGF), a leading financial services specialist in the growing longevity asset class, is pleased to announce the results for the year-ended 31 December 2021 for its BlackOak Alpha Growth Fund (the "Fund") investing in Senior Life Settlements ("SLS").

The Fund in 2021, has seen significant positive inflows of investment, doubling its assets under management to ~$45 million and achieving a compounded annual growth rate (CAGR) of 112% since January 2020.

BOAGF AUM January 2020: ~$10m

BOAGF AUM January 2021: ~$22m

BOAGF AUM January 2022: ~$45m

On a net basis, the Fund produced a total return of 18.9%, annualized 7.7% since inception in September 2019, and monthly returns of 0.6%. The Fund has achieved positive returns in 27 out of the 28 months it has been operational.

At 2021 year end the Fund owned 96 SLS with a total face value of $79,626,819.83 and average life expectancy of 73 months. The minimum is $100,000 and maximum face value is $5,000,000 with an average face value of $829,446.04.

The Company continues to actively market the Fund to registered investment advisors in the US and supplements this direct outreach by showcasing the Fund at virtual events.   

Danny Swick, COO and co-GP of the Fund stated "We continue to go from strength to strength and have received a very positive reception by investors that look for consistent and uncorrelated returns and yield over multi-year periods. We continue to build our portfolio of SLS into a well-diversified pool of policies and remain focused on investing in quality SLS to meet our investment objectives on behalf of our investors."

Gobind Sahney, Executive Chairman, added "The Alpha Growth team continues to perform exceptionally well and have once again more than doubled the size of the Fund over a 12 month period. During this period, the Fund held 25% of its assets in cash, however as the fund continues to grow and mature, we would expect this figure to reduce to circa 15% - this will have a net positive impact on future reported returns."

Gobind continued "Alpha continues to build on its business plan of accreting assets under management and growing long term revenue through its steady focus on the fund and insurance business segments. Providence Life Assurance Company (Bermuda) Ltd continues to perform well and is increasing its balance sheet assets. We have successfully made a number of strategic advances in both business segments recently and I look forward to updating our shareholders when appropriate."

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

Alpha Growth Plc	[phone]
Gobind Sahney, Executive Chairman	[e-mail]
BlackOak Alpha Growth Funds	[phone] www.boagf.com
Arden Partners plc	[phone]
Ruari McGirr / Alexandra Campbell-Harris (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.

This announcement is not an offer of securities for sale into the United States. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the Securities Act), and may not be offered or sold, directly or indirectly, in or into the United States, except pursuant to an applicable exemption from registration. No public offering of securities is being made in the United States. This announcement is not for release, publication or distribution, directly or indirectly, in or into the United States, Australia, Canada, the Republic of South Africa, Japan or any jurisdiction where to do so might constitute a violation of local securities laws or regulations (a Prohibited Jurisdiction). This announcement and the information contained herein are not for release, publication or distribution, directly or indirectly, to persons in a Prohibited Jurisdiction unless permitted pursuant to an exemption under the relevant local law or regulation in any such jurisdiction.

About BlackOak Alpha Growth Fund

The Fund was established by two highly experienced longevity asset management companies.  The Fund invests in life settlements, is a Cayman LP with a tax efficient Master/Feeder structure in an open-ended format with quarterly redemptions.   The Fund seeks to provide well-diversified, non-correlated returns. The   Fund aims to achieve this objective through the acquisition of secondary and tertiary Life Settlement policies that will be structured and purchased to mitigate longevity risk and other investment and business risks and where the Company's expertise can add value.

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