Abacus Global Management, Inc. · NYSE:ABX
Abacus Global Management — East Resources Acquisition — SPAC Merger (August 2022)
25 slides from Abacus Global Management's SPAC merger presentation, Aug 30, 2022
Slide 1: Investor Presentation August 2022
Investor Presentation August 2022 Exhibit 99.2 Exhibit 99.1 ABACUS LIFE OPTIONS FOR YOUR LIFE INSURANCE Investor Presentation August 2022
Slide 2: Disclaimer
Disclaimer General. This presentation (this “Presentation”) is provided solely for informational purposes and has been prepared to assist interested parties in making their own evaluation with respect to the proposed business combination (the “Transaction”) between East Resources Acquisition Company
Slide 3: Disclaimer (continued)
Disclaimer (continued) No Offer or Solicitation. This Presentation is for informational purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sa
Slide 4: Today's Presenters
* denotes individuals that will be presenting. Today’s Presenters 4 Jay Jackson * Bill McCauley * Sean McNealy * Terry Pegula Jim Morrow * Adam Gusky * Chief Executive Officer Chief Financial Officer Co-Founder & Managing Director Chairman, CEO & President Director Chief Investment Officer 25+ years
Slide 5: Transaction Highlights / Why Abacus?
Transaction Highlights Sector market leader in defensive / a-cyclical category Highly scalable platform Steady financial performance with strong growth potential Experienced management team Access to capital markets transforms the business Why Abacus? Transaction proprietarily sourced by East Resour
Slide 6: Business Combination Summary
Note: This slide assumes no redemptions from SPAC stockholders. Projected Financial Model as shown on slides 20 and 21 assumes $35 million SPAC Cash in Trust (net of redemptions) upon closing and an incremental $100 million of debt financing raised in Q3-23. Assumes closing cash balance does not exc
Slide 7: Overview of Abacus Life
Source: Market share data per The Deal and based on value of settlements paid in 2021. Includes policies originated, owned, and / or serviced by Abacus over the last twelve months. Overview of Abacus Life We have built a leading vertically integrated alternative asset manager specializing in life in
Slide 8: Investment Highlights
Investment Highlights 8 Investment Highlights I Essentially Uncorrelated Alternative Asset Class with a Large TAM, Institutional Investment Grade Counterparts, and Outsized Growth Potential II Abacus is at the Heart of the Life Settlements Industry III An Origination Machine with a Model to Drive Ec
Slide 9: Large TAM alternative asset class
Sources: Life Insurance Industry per the American Council of Life Insurers Annual Report (2020). American Real Estate Industry per the MSCI – Real Estate Market Size report (2021 / 2022). Percent of insurance policies that do not pay claims per the Life Settlement Insights (Observations and Commenta
Slide 10: Uncorrelated Alternative Asset with Institutional Investment Grade Counterparts
Source: Policy Cash Value Over Time chart based on a $1 million death benefit, ~3% cash value rate of increase, beginning at 35-years old and paying out at 100-years old. A-cyclical and essentially uncorrelated returns based on the average return and associated standard deviation chart – based on 3-
Slide 11: Abacus is at the Heart of the Life Settlements Industry
Source: Market share data per The Deal and based on number of settlements provided from 2017 – 2021. Note: All portfolio trading performance metrics measured from 2019 – 2021. Abacus is at the Heart of the Life Settlements Industry Capital Providers Origination Machine Agents DTC Brokers Hold Portfo
Slide 12: Origination Machine with a Model to Drive Economics
Note: LS abbreviation denotes “Life Settlement”. Abacus’ 20% lower acquisition cost based on the discount between cost basis and final sale price on all policies sold from 2019 – 2021. Origination Machine with a Model to Drive Economics Diversification Across Multiple Origination Channels Creates a
Slide 13: Proprietary Technology Platform Yields Differentiated Underwriting Capabilities
Policy Value Calculator Illustrative example. Proprietary Technology Platform Yields Differentiated Underwriting Capabilities Purchase Price Policy Type Carrier Rating Lead Source Policy Face Value Expected IRR Life Expectancy LE Extension Ratio Current Age & Age on LE Survival Probability Proprieta
Slide 14: Optimized Platform Through Active Portfolio Management
Abacus held traded policies for an average of ~100 days in 2021. Estimated annual return figures based on an internal valuation report conducted by a 3rd party actuarial firm. Optimized Platform Through Active Portfolio Management 14 Traded Portfolio – returns driven by velocity of capital Held Port
Slide 15: Seasoned Leadership Supported by Outstanding Operations & Execution Team
Seasoned Leadership Supported by Outstanding Operations & Execution Team Jay Jackson Chief Executive Officer 25+ years experience Bill McCauley Chief Financial Officer 20+ years experience Todd “Sean” McNealy Managing Partner & Co-Founder 25+ years experience Kevin “Scott” Kirby Managing Partner & C
Slide 16: Multiple Avenues to Drive Growth
Source: Life insurance settlement industry data from Conning Research Report (Life Settlements – The Growth Continues – 2022). Based on 2019 topworkplaces.com report of organizations in Central Florida with 35 – 149 employees. Represents growth in headcount from June 2021 to June 2022. Multiple Aven
Slide 17: Abacus' Business Model Transitions as Our Capital Base Scales
Abacus’ Business Model Transitions as Our Capital Base Scales 17 Long-term target of 50% hold / 50% trade Investment grade credit ratings will provide access to lower cost of capital Infrastructure investment increases the number of relationships with strategic partners across the value chain Going
Slide 18: Aggregated Historical Track Record
Aggregated Historical Track Record 18 Traded Portfolio Held Portfolio Total Portfolio 238 Policies Acquired $317mm Total Face Value $1.3mm Average Face Value 12% Projected Return 1 Construct policy tranches for a range of institutional buyers 1 – 2-day trading process given policies are held at secu
Slide 19: Consolidated Historical Financials
based on an average ~$21 million capital base for LMA & Abacus based on an average ~$21 million capital base for LMA & Abacus based on an average ~$21 million capital base for LMA & Abacus Note: Originated Policies, Revenue, Net Income, and Return on Equity based on unaudited financials. Historical
Slide 20: Historical Economic Model Overview
Note: Projected Model Assumptions assumes $35 million SPAC Cash in Trust (net of redemptions) upon closing and an incremental $100 million of debt financing raised in Q3-23. Current Sources & Uses as shown on page 6 shows current SPAC Cash in Trust (net of redemptions as a part of the extension vote
Slide 21: Summary Projected Financials
Note: Summary Projected Financials assumes $35 million SPAC Cash in Trust (net of redemptions) upon closing and an incremental $100 million of debt financing raised in Q3-23. Current Sources & Uses as shown on page 6 shows current SPAC Cash in Trust (net of redemptions as a part of the extension vot
Slide 22: Operational Benchmarking
Source: Financial data per Capital IQ / S&P Global. Note: Return on Tangible Equity not a relevant metric for Alternative Asset Managers. Instead, analysis shows Net Income Margin relative to Abacus Life. Revenue, Net Income, Return on Tangible Equity, and Net Income Margins based on FY’2023E. Abacu
Slide 23: Valuation Benchmarking
Source: Valuation data per Bloomberg as of August 22, 2022. Abacus’ return on tangible equity is based on FY’2024E given normalization of equity post transaction. Assumes $150 million capital raise in Q1’24. Valuation Benchmarking 23 Valuation Benchmarking Specialty Insurance (Non-Cyclical and High
Slide 24: Investment Highlights
Investment Highlights 24 Investment Highlights Essentially Uncorrelated Alternative Asset Class with a Large TAM, Institutional Investment Grade Counterparts, Abacus is at the Heart of the Life Settlements Industry and Outsized Growth Potential An Origination Machine with a Model to Drive Economics
Slide 25: Click to add text Click to add text
ABACUS LIFE OPTIONS FOR YOUR LIFE INSURANCE Click to add text Click to add text 25
East Resources Acquisition — SPAC Merger (August 2022) on 6ix