Alternative asset manager Abacus Global Management just closed a $400 million securitization, backed by a portfolio of life insurance policies, its largest sale of such bonds to date.
The private placement, closed on September 22, was offered to investors through class A and B notes, and the deal includes a residual interest, according to a company announcement.
Proceeds from the bond sale will allow Abacus to originate more policies and fund general corporate operations, the company said. The transaction is also part of Abacus' shift toward recurring, fee-related revenue.
"This is a platform strategy," according to a statement from Elena Plesco, chief investment officer at Abacus. "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, an build a durable, management fee driven revenue base."
The investment-grade notes, as per a third-party rating agency, priced at spreads over the five-year Treasury, with maturities that align with its underlying assets, and received the company said. Abacus will continue to service the policies in the asset pool through its affiliates, the company said.
Abacus uses longevity-based assets, including life insurance policies, to provide a range of services, including wealth management and personalized financial planning.
