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Alpha Growth on the acquisition trail supported by £3.75mln, oversubscribed share placing

Published: 02:55 11 Feb 2021 EST

Alpha Growth PLC -

Alpha Growth PLC (LON:ALGW, OTCQB: ALPGF) said it is acquiring an unnamed Bermuda-based insurance company supported by an oversubscribed £3.75mln share placing.

The financial services and asset management group said the deal, which will be earnings accretive, “represents a significant building block in the company's continued evolution”.

“Today's acquisition announcement is a significant step forward for the company and demonstrates the ambition of Alpha Growth as well as the scale of the future opportunity,” added chief executive Gobind Sahney

The Class C licensed insurer has assets under management of US$290mln and in-force policies of US$750mln.

Once the transaction completes, Alpha will have around US$300mln assets under management compared with just US$10mln at the start of last year.

In a wide-ranging update, the company said its BlackOak Alpha Growth Fund achieved a net return of 10.63% for 2020.

This placed it in the top five BarclayHedge yearly performance rankings in its category. Assets under management for the fund have doubled in this period.

The company also said it “continues to progress” the Alpha Growth & Income strategy.

This is a combination of life settlements and life contingent structured settlements hedged by a life insurance policy that is suitable for investors seeking cash flow and growth.

It will be funded in either a separate managed account or as a co-mingled fund with a minimum investment of US$50mln.

“It is anticipated that this strategy is complementary with the announced acquisition,” Alpha added.

Finally, the company said it has almost completed discussions to secure a short term credit facility.

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