Beneficient Closes Initial Series of Liquidity Transaction Financings of Limited Partner Interests Sourced Through Preferred Liquidity Provider Program (“PLP Program”) (2024)

Rhea-AI Impact

(Low)

Rhea-AI Sentiment

(Neutral)

Tags

Rhea-AI Summary

Beneficient (Nasdaq: BENF) has closed a $2 million liquidity financing and has sourced nearly $10 million from its PLP Program. The company has entered into additional PLP Program agreements, increasing the total amount of committed capital to funds party to the PLP Program to $1.5 billion. The PLP Program is now offered alongside Beneficient’s New Primary Commitment Program for General Partners. The company has executed PLP Program agreements with 19 separate alternative asset funds, representing an increase of approximately $1.2 billion in committed capital from the previous year. The PLP Program provides alternative asset general partners, the investment funds they advise, and their limited partners an opportunity for enhanced reporting and trust and custodial services, as well as early exit capabilities for their illiquid alternative investments financed by Beneficient. The company also offers the PLP Program alongside its newly launched Primary Commitment Program for general partners of alternative asset funds in their fund-raising process.

Positive

  • None.

Negative

  • None.

Beneficient's announcement of securing $1.5 billion in committed capital through its Preferred Liquidity Provider Program (PLP Program) is a significant financial development. This influx of capital represents a substantial year-over-year increase, indicating strong growth and investor confidence in Beneficient's business model. The closure of $2 million in liquidity financing is part of a broader strategy to provide liquidity solutions to limited partners of alternative asset funds. Such financial maneuvers could potentially enhance Beneficient's revenue streams through interest, fees and net income associated with these transactions.

From an investor's perspective, the expansion of the PLP Program and the launch of the Primary Commitment Program for general partners could diversify Beneficient's offerings and may lead to increased market share in the alternative investment industry. The company's focus on technology-enabled solutions like AltAccess positions it at the intersection of finance and technology, potentially increasing its appeal to tech-savvy investors and clients looking for innovative liquidity solutions.

The alternative investment industry is witnessing a growing demand for liquidity solutions, as evidenced by the rapid expansion of Beneficient's PLP Program. The integration of technology to facilitate early exits for limited partners is a competitive advantage that could attract more funds and investors to the platform. By offering a secure, regulated and cost-efficient means of accessing liquidity, Beneficient is tapping into a niche market that has historically been underserved due to the illiquid nature of alternative assets.

Moreover, the strategic initiative to create a private-labeled experience through AltAccess may foster partnerships with financial services firms, fund sponsors and wealth managers. This could lead to a broader customer base and enhanced brand recognition. The emphasis on compliance with SOC 2 and SOC 3 certifications underscores a commitment to security and trust, which is critical in the financial services industry and could further solidify client relationships.

The regulatory aspect of Beneficient's PLP Program is a key component of its value proposition. By operating under the oversight of state banking regulators and emphasizing certifications like SOC 2 and SOC 3, Beneficient is addressing potential legal and regulatory concerns proactively. This level of regulatory compliance can be reassuring to investors and limited partners, especially in an industry that is closely scrutinized for its adherence to financial regulations.

Additionally, the introduction of new financial products, such as the Primary Commitment Program, requires careful navigation of legal frameworks to ensure that they are in line with existing laws and regulations. Beneficient's approach to regulation may also set a precedent for how liquidity services in the alternative investment sector are structured and delivered, possibly influencing industry standards and practices.

– Closing of $2 Million Liquidity Financing Caps Nearly $10 Million Sourced from PLP Program –

– Entered into additional PLP Program Agreements, Increasing the Total Amount of Committed Capital to Funds Party to the PLP Program to $1.5 Billion –

– PLP Program now Offered alongside Beneficient’s New Primary Commitment Program for General Partners –

DALLAS, Jan. 22, 2024 (GLOBE NEWSWIRE) -- Beneficient (Nasdaq: BENF), a technology-enabled platform providing liquidity and related trust and custody services to holders of alternative assets through its proprietary AltAccess® online platform,today announced key milestones and liquidity transaction financing closings sourced through its expanding Preferred Liquidity Provider Program (“PLP Program”) for general partners.

As a result of recent increased participation in the PLP Program, Beneficient has now executed PLP Program agreements with 19 separate alternative asset funds having an aggregate of $1.5 billion in committed capital across various asset classes, vintage years and fund sizes, which represents an increase of approximately $1.2 billion in committed capital from the 7 alternative asset funds that were participating as of January 22, 2023. Under the PLP Program, Beneficient has financed nearly $10 million of liquidity transactions, including today’s announced successful closing of $2 million, to limited partners of these participating funds who were looking for an early exit solution. Each of the 19 separate alternative asset funds participating in the PLP Program and their collective 1,300 limited partners may utilize AltAccess, Beneficient’s innovative customer-focused SOC 2 Type 1, SOC 2 Type 2, and SOC 3 certified technology platform, to digitize their alternative assets in order to explore early exit opportunities financed by Beneficient.

The PLP Program provides alternative asset general partners, the investment funds they advise and their limited partners an opportunity for enhanced reporting and trust and custodial services, as well as early exit capabilities for their illiquid alternative investments financed by Beneficient. As a strategic, enterprise-wide initiative, the PLP Program also seeks to provide a wide range of financial services firms, including fund sponsors and wealth managers, the opportunity the to engage directly with AltAccess to create a turnkey, private-labeled experience for their customers and investors. Transactions pursuant to the PLP Program may be efficiently closed through our AltAccess platform, which provides customer proposals for liquidity in a secure online environment that is subject to ongoing oversight by our subsidiary’s state banking regulators.

“Our mission to democratize the alternative investment industry was built on the notion that our customers, whether individuals or institutions, general partners or limited partners, would demand a regulated, secure and tech-enabled solution that integrates into their existing platforms and technologies,” said Brad Heppner, CEO and Founder of Beneficient. “AltAccess, which drives our PLP Program, has been built to simplify and accelerate the realization of investors’ desire to exit their alternative investments early and do so in a secure, cost-efficient and regulated manner. Our services and financing products are now available to a growing number of alternative asset funds and investors and currently represents over $1.5 billion of committed capital to 19 alternative asset funds. Additionally, the more than 1,300 limited partners of these funds may determine to access early liquidity directly from Beneficient under the PLP Program in the future.”

Beneficient also offers the PLP Program alongside its newly launched Primary Commitment Program for general partners of alternative asset funds in their fund-raising process, through which Beneficient finances a minority interest commitment being made to new alternative asset funds. The Beneficient Primary Commitment Program expands our general partner solutions offerings and is designed to generate interest, fees, and net income in line with Beneficient’s other liquidity offerings.

“Helping general partners reach their capital raising goals through Beneficient’s financings of limited partners and funds as well as providing a range of value-add fund services, including our growing PLP Program, creates a very strong alignment with the communities that we target,” said Jeff Welday, Global Head of Originations & Distribution at Beneficient. “We believe Beneficient is uniquely positioned to address two of the bigger concerns currently facing general partners and their investors: fund raising and accessing liquidity.”

For more information, visit www.trustben.com or follow on LinkedIn.

About Beneficient

Beneficient (Nasdaq: BENF) – Ben, for short – is on a mission to democratize the global alternative asset investment market by providing traditionally underserved investors – mid-to-high net worth individuals and small-to-midsized institutions – with early liquidity exit solutions that could help them unlock the value in their alternative assets. Ben’s AltQuote™ tool provides customers with a range of potential liquidity exit options within minutes, while customers can log on to the AltAccess® portal to digitize their alternative assets in order to explore early exit opportunities, receive proposals for liquidity in a secure online environment, engage custodial services for the digital alternative assets and receive data analytics to better inform investment decision making. Its subsidiary, Beneficient Fiduciary Financial, L.L.C., received its charter under the State of Kansas’ Technology-Enabled Fiduciary Financial Institution (TEFFI) Act and is subject to regulatory oversight by the Office of the State Bank Commissioner.

This press release does not constitute an offer to sell, a solicitation to buy or an offer to purchase or sell any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The securities that may be issued pursuant to Beneficient’s PLP Program and Primary Commitment Program for general partners have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Forward-Looking Statements

This communication includes forward-looking statements as defined under U.S. federal securities laws. Forward-looking statements include all statements that are not historical statements of fact, including related to the Primary Commitment Program, the PLP Program, and the closing of the transactions described herein, and statements regarding, but not limited to, our expectations, hopes, beliefs, intention, or strategies regarding the future. In addition, any statements that refer to projections, forecasts, or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “will,” “would,” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to significant risks and uncertainties. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and we assume no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

Contacts
Investors:
investors@beneficient.com

Media:
Longacre Square Partners
Greg Marose / Dan Zacchei
beneficient@longacresquare.com

Beneficient Closes Initial Series of Liquidity Transaction Financings of Limited Partner Interests Sourced Through Preferred Liquidity Provider Program (“PLP Program”) (1)
Beneficient Closes Initial Series of Liquidity Transaction Financings of Limited Partner Interests Sourced Through Preferred Liquidity Provider Program (“PLP Program”) (2)

The ticker symbol for Beneficient is BENF.

The total amount of committed capital to funds party to the PLP Program is $1.5 billion.

Beneficient has closed a $2 million liquidity financing.

Beneficient has executed PLP Program agreements with 19 separate alternative asset funds.

The PLP Program provides alternative asset general partners, the investment funds they advise, and their limited partners an opportunity for enhanced reporting and trust and custodial services, as well as early exit capabilities for their illiquid alternative investments financed by Beneficient.

The Beneficient Primary Commitment Program is designed to finance a minority interest commitment being made to new alternative asset funds and is offered alongside the PLP Program.

As a seasoned expert in the field of alternative investments and financial technology, I can provide a comprehensive analysis of the concepts mentioned in the article, "Rhea-AI Impact (Low) Rhea-AI Sentiment (Neutral) Tags Rhea-AI Summary Beneficient (Nasdaq: BENF)."

Firstly, let's discuss the key points highlighted in the article:

  1. Beneficient's Financial Developments:

    • Evidence: The article mentions that Beneficient has closed a $2 million liquidity financing and sourced nearly $10 million from its PLP Program.
    • Analysis: This financial development is crucial, indicating strong growth and investor confidence in Beneficient's business model. The increase in committed capital to $1.5 billion is a significant year-over-year expansion, showcasing the company's success in attracting funds.
  2. PLP Program Expansion:

    • Evidence: Beneficient has executed PLP Program agreements with 19 separate alternative asset funds, representing an increase of approximately $1.2 billion in committed capital from the previous year.
    • Analysis: The expansion of the PLP Program reflects a growing demand for liquidity solutions in the alternative investment industry. The integration of technology for early exits is a competitive advantage, attracting more funds and investors to the platform.
  3. Technology-Enabled Solutions:

    • Evidence: The article emphasizes Beneficient's focus on technology-enabled solutions like AltAccess, positioning the company at the intersection of finance and technology.
    • Analysis: This approach could appeal to tech-savvy investors, and the emphasis on compliance with SOC 2 and SOC 3 certifications underscores a commitment to security and trust.
  4. Private-Labeled Experience through AltAccess:

    • Evidence: Beneficient aims to create a private-labeled experience through AltAccess, potentially fostering partnerships with financial services firms, fund sponsors, and wealth managers.
    • Analysis: This strategic initiative could lead to a broader customer base and enhanced brand recognition, offering a unique and secure platform for alternative asset digitization.
  5. Regulatory Compliance:

    • Evidence: The article highlights Beneficient's commitment to regulatory compliance, operating under the oversight of state banking regulators and obtaining certifications like SOC 2 and SOC 3.
    • Analysis: This regulatory compliance addresses legal and regulatory concerns, reassuring investors and limited partners. It may also set industry standards for how liquidity services in the alternative investment sector are structured.
  6. Introduction of New Financial Products:

    • Evidence: Beneficient has introduced new financial products like the Primary Commitment Program, requiring careful navigation of legal frameworks.
    • Analysis: The company's approach to regulation may set a precedent for structuring and delivering liquidity services in the alternative investment sector, potentially influencing industry standards.

In conclusion, Beneficient's recent financial developments, expansion of the PLP Program, focus on technology-enabled solutions, and commitment to regulatory compliance position it as a key player in the evolving landscape of alternative investments. The company's strategic initiatives and innovative approach could reshape industry practices and attract a diverse range of investors.

Beneficient Closes Initial Series of Liquidity Transaction Financings of Limited Partner Interests Sourced Through Preferred Liquidity Provider Program (“PLP Program”) (2024)
Top Articles
Latest Posts
Article information

Author: Prof. An Powlowski

Last Updated:

Views: 6270

Rating: 4.3 / 5 (64 voted)

Reviews: 95% of readers found this page helpful

Author information

Name: Prof. An Powlowski

Birthday: 1992-09-29

Address: Apt. 994 8891 Orval Hill, Brittnyburgh, AZ 41023-0398

Phone: +26417467956738

Job: District Marketing Strategist

Hobby: Embroidery, Bodybuilding, Motor sports, Amateur radio, Wood carving, Whittling, Air sports

Introduction: My name is Prof. An Powlowski, I am a charming, helpful, attractive, good, graceful, thoughtful, vast person who loves writing and wants to share my knowledge and understanding with you.