Abacus Global Management has closed a dual-tranche securitisation collateralised by a diversified portfolio of life insurance policies. The total structure is valued at over $400m, including the Class A and Class B notes and the residual interest.
“This is a platform strategy, not a financing strategy. By packaging longevity-based assets into formats that institutional fixed income investors can own, we broaden and diversify our investor base, deepen the distribution channels available to our Asset Group, and build a durable, management fee-driven revenue base, all while continuing to turn our balance sheet multiple times per year,” said Elena Plesco, Chief Investment Officer at Abacus.
“This is the largest securitization to date for Abacus. The investment-grade rating and the demand we saw from institutional investors confirm something we’ve believed for a long time. There’s a deep market for longevity-based assets among the largest fixed income buyers in the world. That validation matters as much as the deal itself, and it tells us the path we’re on is the right one. I also want to thank the entire Abacus team for the work that made this closing possible,” added Jay Jackson, Chairman and Chief Executive Officer at Abacus.
Abacus expects to use the net proceeds from the transaction to support continued policy origination and fund general corporate purposes. The notes have received an investment-grade rating from a third-party rating agency.
