The Beneficient Company Group Sells Initial Loan Participation with Exposure to Alternative Assets to Prosperity
DALLAS — The Beneficient Company Group, L.P. (Ben), a leading technology-enabled fiduciary financial institution serving the new emerging market demand from investors seeking regulated fiduciaries that provide liquidity, custody and trustee management services for their alternative assets, today announced it sold a participation in a loan collateralized with alternative asset funds to affiliates and advised (or related) entities of Prosperity Asset Management, LLC (Prosperity).
The $72.5 million loan participation sold represents a portion of over $245 million of newly issued loans by a subsidiary of Ben that are supported by a broadly diversified pool of alternative investments. Ben’s loans are originated through its core liquidity products under which Ben provides liquidity in exchange for alternative assets from mid-to-high-net worth, small-to-mid-sized institutional and sponsor firm investors. The proceeds of the exchanged assets support the repayment of Ben’s loans as well as loans purchased by loan participation participants. Ben serves as the regulated custodian of the accounts which hold the collateral supporting the loans in addition to serving as the trustee for the funding trusts which facilitate the payment of future capital calls.
“We are thrilled to announce such a successful initial loan participation,” said Brad Heppner, CEO and Chairman of Ben. “We believe this shows how Ben innovates to meet the needs of its partners while seeking to democratize the global alternative asset industry by serving as a regulated fiduciary as liquidity provider, custodian and trustee for alternative asset investors.”
“We are excited to be partnering with such an innovative company in a way that allows us to further diversify our loan portfolio and gain exposure to alternatives in the secondary market,” said Deva Mishra, Chief Executive Officer of Prosperity Asset Management, LLC.
The Beneficient Company Group, L.P. (Ben) provides a unique suite of simple, rapid, and cost-effective liquidity solutions and other financial services for owners of alternative assets. Serving as a custodian, trustee and insurance services provider for investors in alternative assets, Ben is a regulated fiduciary for investors in need of liquidity from their alternative assets. Ben’s liquidity solutions are available for most types of professionally managed alternative asset investments and can be customized to suit individual circumstances. Serving as a principal by using its own balance sheet and lending to fund an exchange for alternative assets, Ben operates as a permanent capital financial institution that helps to remove many of the traditional barriers to liquidity faced by mid-to-high-net-worth individuals and small-to-mid-sized institutions. Ben’s loan portfolio had a carrying value of over $520 million as of December 31, 2021. The loan portfolio had exposure to over 330 professionally managed alternative investment funds, comprised of over 1,300 underlying investments. For more information, visit www.trustben.com.
About Prosperity Asset Management
Prosperity Asset Management (PAM) is an alternative asset manager specializing in credit and niche assets that currently provides investment management services to insurance companies. PAM focuses on acquiring cash flow generating assets that offer superior risk-adjusted returns, both directly and through ownership interests in, or strategic relationships with, complementary asset management platforms that originate differentiated, difficult-to-source assets. PAM is an affiliate of Prosperity Group Holdings, an insurance, reinsurance and asset management franchise focused on the U.S. retirement and life markets.