GWG Holdings (GWGH), the parent company of GWG Life and Life Epigenetics, has formed a strategic relationship with The Beneficient Company Group (BEN).
“BEN is partnering with GWGH because they’ve identified the life insurance asset class as a key enhancement to their diversified endowment portfolio of high-quality alternative assets for which they provide loans and liquidity,” said said Jon Sabes, GWGH CEO. “And while GWGH will continue to execute our announced strategies to our utmost capacity, we also look forward to rolling out BEN’s innovative alternative asset liquidity products to independent broker-dealers and RIAs once BEN obtains its pending regulatory approvals.”
As part of the strategic relationship, GWGH will acquire 82 percent of the outstanding BEN MLP units from existing unitholders of BEN. BEN will have in excess of $800 million of tangible financial assets pro forma for the transaction. GWGH will also enter into a $400 million, four-year commercial loan with BEN to enable BEN to continue building out its suite of liquidity products.
“We have been committed to adding the life insurance asset class to our business plan and our mix of alternative asset classes that we administer and lend against,” said Brad Heppner, CEO and founder of BEN. “GWGH’s expertise in the life insurance secondary market, as well as management’s commitment to growth and innovation, blend perfectly into the emerging opportunity to provide liquidity and administrative services to the alternative asset investors we serve.”
GWGH has experienced 28 percent growth, year-over-year, in its portfolio of life insurance policies, becoming one of the largest buyers of life insurance policies in the secondary market in 2017. In addition, GWGH launched Life Epigenetics, a wholly owned subsidiary that is commercializing innovative epigenetic technology designed to revolutionize the underwriting, pricing and sale of life insurance for the global insurance industry.
