Abacus Life, a life settlements company and alternative investment manager, announced it has received regulatory approval from Luxembourg for its acquisition of Carlisle Management Co. S.C.A.
The Luxembourg Commission de Surveillance du Secteur Financier granted a non-objection for the transaction, which is expected to close on Dec. 2, 2024.
Abacus Life stated that Carlisle’s addition will bring about $2 billion in assets under management to its ABL Wealth division. The company noted that Carlisle’s clients will now have access to its portfolio of uncorrelated, high-returning insurance products.
Jay Jackson, CEO of Abacus Life, emphasized that the acquisition is an important step in the company’s strategy to expand its global footprint in alternative asset management.
"We expect Carlisle’s addition to be a major milestone in our path toward expanding our global alternative asset management footprint,” he said.
In addition to the acquisition, Abacus Life revealed that ABL Technologies LLC, its technology platform for managing and reconciling mortality data, will make a preferred equity investment in Insured Connect, a platform specializing in insurance data and technology.
On Nov. 25, Abacus Life completed an oversubscribed public offering, selling 12.5 million shares of common stock at $8 per share. The company raised approximately $100 million in gross proceeds, which included $80 million from the offering and an additional $20 million from the sale of 2.5 million shares by existing stockholders.
Despite some historical challenges in the life insurance industry’s relationship with life settlement companies, Jackson has indicated that this dynamic is shifting.
He highlighted that Abacus Life is pursuing a growth strategy that includes selling settled policies back to carriers. Jackson mentioned that the company’s relationship with one large carrier is growing and that he anticipates expanding these partnerships in the future.
“It’s been increasing, and we look forward to growing that relationship and many more," said Jackson.
Abacus Life, which now manages nearly $3 billion in assets, positions itself as the only publicly traded global asset manager focused on lifespan-based financial products, according to the company’s statement.
How do you think this trend will impact the industry? Share your opinion in the comments.
