DALLAS – January 22, 2024 – 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.
For more information, visit www.trustben.com or follow on LinkedIn.
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Forward-Looking Statements
Some of the statements contained in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are generally identified by the use of words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and, in each case, their negative or other various or comparable terminology. These forward-looking statements reflect our views with respect to future events as of the date of this document and are based on our management’s current expectations, estimates, forecasts, projections, assumptions, beliefs and information. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. All such forward-looking statements are subject to risks and uncertainties, many of which are outside of our control, and could cause future events or results to be materially different from those stated or implied in this document. It is not possible to predict or identify all such risks. These risks include, but are not limited to, our ability to consummate liquidity transactions on terms desirable for the Company, or at all, and the risk factors that are described under the section titled “Risk Factors” in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings with the Securities and Exchange Commission. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this document and in our SEC filings. We expressly disclaim any obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law.