Nov 05. 13:17
Alpha Growth PLC Registers the Alpha Alternative Assets Fund
The Alpha Alternative Assets Fund, registered on 10/1/2021, is an interval fund focused on "longevity-based assets," a broadly-defined range of investments related to supporting an aging population in the U.S. and globally.
Other reinsurance interval funds such as Stone Ridge Trust II have some longevity exposure, but the Alpha Alternative Assets Fund is the first interval fund to make longevity its explicit primary focus.
The "generational wealth transfer" is a hot topic among asset managers and financial advisors, referring to a massive rolling inheritance by Gen X and Millennials that is forcing a widespread reckoning that encompasses fee compression, FinTech adoption and ease of use accessing financial products, a flood of real estate transactions across a new geographic distribution, new classes of entrepreneurs, and the long-term environmental and social implications of the ways we deploy capital.
Millennials became the nation's largest generation in 2019, eclipsed by Gen Z just a year later - and with Baby Boomers and the Silent Generation holding a full 70% of the nation's wealth, compared to less than 5% for Millennials, the $70 trillion inheritance that will play out over the next two decades will represent the largest redistribution of wealth in human history.
This phenomenon is fully underway, but it's still only 2021. There are more than 94 million Americans born after 1947 living in this country, and Alpha Growth PLC launched the Alpha Alternative Assets Fund to finance the immediate and future needs of this population segment, while seeking to provide current income and long-term capital appreciation to institutional investors who participate.
The Fund intends to concentrate more than 25% of investments in the insurance industry, primarily securitized life settlement contracts and annuities, but expects to gain exposure to senior living real estate, as well as associated private debt and private equity funds. Because longevity-related investments are inherently illiquid (perhaps increasingly so with advancements in medical science and technology), Alpha Growth hired sub-adviser Haven Asset Management to invest in highly liquid, high yield securities along with leverage not to exceed 1/3 of the Fund's net assets plus borrowings.
Alpha Growth PLC (LON:ALGW) is headquartered in the United Kingdom with offices in London and Newport Beach, with over USD $300m under management.
Thompson Hine LLP serves as the Fund's legal counsel.
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