Abacus Life, a publicly traded different asset originator and supervisor that focuses on life insurance coverage merchandise, has signed an settlement to accumulate FCF Advisors, a New York-based asset supervisor with about $600 million in property below administration.
FCF, which was rebranded from TrimTabs Asset Administration in 2022, has 5 ETFs, three index methods and individually managed accounts that use free money circulation as the important thing screening standards for inventory choice.
Dynasty Funding Financial institution was FCF’s unique advisor on the deal, which is anticipated to shut within the fourth quarter.
This represents Abacus Life’s second asset administration acquisition in as many months. Final month, the firm introduced plans to accumulate Carlisle Administration Firm SCA, a Luxembourg-based different asset supervisor with about $2 billion in property below administration, for $200 million.
Each FCF and Carlisle will probably be a part of Abacus Life’s wealth division, ABL Wealth, and can present funding methods to the advisors who ultimately be part of the platform.
Abacus Life launched ABL Wealth late final 12 months with the assist of Dynasty Monetary Companions. The agency plans to seed that providing by buying and rolling up RIAs below the ABL Wealth model. It would present these advisors with leads from each the inquiries the corporate receives and money payouts from its life settlements enterprise.
Abacus Life CEO Jay Jackson mentioned the agency has a powerful pipeline of potential RIA acquisitions, nevertheless it wished to get the funding administration piece in place first. The acquisition of FCF was the subsequent step towards constructing a longevity- and lifespan-based monetary planning mannequin.
“Free money circulation is worthwhile companies, and if we’re constructing lifespan/longevity-based fashions, you need to have the ability to put money into corporations which might be worthwhile,” he mentioned. “We all know that long-term, not solely have they traditionally outperformed the market, however they sometimes present decrease volatility.”
Jackson will give attention to the agency’s RIA acquisition technique within the latter a part of this 12 months.
“Our thought was, let’s get the fashions constructed, let’s get this program put out and this concept behind utilizing lifespan as a part of your monetary planning and property planning, and concurrently we’ve been working with, chatting with and prospecting funding advisors all throughout the nation who would wish to be part of this platform.”
Advisors with insurance coverage backgrounds are significantly interesting, he mentioned.
“The core engine of what Abacus does is insurance coverage administration, within the sense that we use actuarial and longevity information to accumulate life insurance coverage insurance policies,” he mentioned. “Having monetary advisors which have a eager understanding of life insurance coverage is de facto useful to us as an organization and actually accretive as a result of they may already be promoting life insurance coverage merchandise or be capable to establish alternatives for us to probably purchase.”
Abacus Life receives some 10,000 inquiries a month from people who could not qualify to promote their coverage however produce other monetary providers wants. These leads are, on common, over age 55 and have $1 million of internet price, and function a differentiator to the corporate because it seems to draw RIAs.
“So many instances, monetary advisors could take into account promoting their enterprise to a rollup technique, and so they’re sort of on their very own,” Jackson mentioned. “They’re not supplied any further sources to really develop their enterprise, the place we’ve acquired hundreds of inquiries month-to-month that we might help them develop their enterprise that fall according to what we’re seeking to set up inside our personal asset administration funds.”