Abacus Global Management has completed a securitization valued at more than $400 million, backed by a diversified portfolio of life insurance policies. The transaction represents the company’s largest securitization to date and expands its ability to connect longevity-based assets with institutional fixed-income investors.
The financing features a dual-tranche structure consisting of Class A and Class B notes, alongside a residual interest. The combined value of the notes and residual interest exceeds $400 million.
The notes received an investment-grade rating from a third-party rating agency, while the offering attracted sufficient institutional demand to become oversubscribed and was subsequently upsized.
Abacus expects to use the transaction’s net proceeds to support continued life insurance policy origination and general corporate purposes.
More broadly, the financing advances the company’s strategy of expanding its alternative asset management business and increasing its contribution from recurring management fees.
The transaction was structured through a special-purpose vehicle that issued notes collateralized by a pool of life insurance policies.
Abacus will continue servicing the underlying policies through its affiliated businesses.
This arrangement allows institutional investors to gain exposure to longevity-based assets through securities backed by an established portfolio rather than directly purchasing and administering individual insurance policies.
Abacus specializes in financial services built around life insurance and other longevity-related assets, using proprietary data analytics, underwriting, and servicing capabilities.
Its business model includes originating life insurance policies, analyzing their investment characteristics, managing portfolios, and providing servicing capabilities for institutional investors.
The latest securitization brings those activities together in a structure designed for the fixed-income market.
By packaging policies into investment-grade securities, Abacus intends to expand the pool of investors able to participate in the asset class.
The transaction also provides an additional distribution channel for the company’s Asset Group.
Rather than relying exclusively on transactional income associated with acquiring or selling policies, Abacus is pursuing a business model that generates more predictable revenue through ongoing asset management and servicing activities.
The company expects the securitization to increase assets under management, although it did not disclose the precise incremental amount.
The offering also allows Abacus to recycle capital into additional policy acquisitions while retaining opportunities to earn fees from managing and servicing securitized assets.
Management identified this ability to originate, securitize, and continue servicing life insurance portfolios as an important part of its long-term strategy.
The transaction’s oversubscription and subsequent increase in size indicate that investor demand exceeded the initially contemplated offering.
However, the company did not disclose the individual sizes of the two note tranches, their coupon rates, maturities, or the identity of the third-party rating agency.
The notes were offered through a private placement to accredited investors under an exemption from registration requirements in the Securities Act of 1933.
They have not been registered under the Securities Act or applicable state securities laws.
Abacus Global Management is headquartered in Orlando, Florida, and operates across alternative asset management, data-driven wealth solutions, technology, and institutional financial services.
Its latest securitization expands its capital markets activities while supporting a strategy centered on growing recurring, fee-related earnings.
KEY QUOTES:
“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.”
Elena Plesco, Chief Investment Officer Of Abacus Global Management
“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.”
Jay Jackson, Chairman And CEO Of Abacus Global Management
