Source: Abacus Life (ABL) Continues Momentum With Strong 3rd Quarter
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Abacus Life (ABL) is continuing to have a strong year of profitability, according to the company’s recently released Q3 2024 earnings report. Revenue for this leading alternative asset manager reached $28.1 million in Q3 2024, up 33% annually. Adjusted net income hit $14.9 million, up 65% annually. CEO Jay Jackson was pleased with the results, stating:
“It was another great quarter for Abacus as we continued to deliver meaningful growth and profitability, while we successfully executed on our long-term strategy.”
It was a busy quarter for Abacus Life. In addition to posting profitable financial growth, the company made key updates to its product offering, announced two acquisitions, and welcomed new members to its leadership team. This strong performance helped ABL stock secure four Buy Ratings from prominent analysts.
Abacus Life’s Major Wins In Q3
One of the highlights from Abacus Life’s Q3 earnings report was the development of the ABL Tech platform, which CEO Jay Jackson expects to become “a significant driver of our top-line growth over the long term.”
The ABL Tech platform delivers bespoke solutions for companies in the pension and financial services industries. Despite just launching in April 2024, ABL Tech already serves 21 clients including one of the largest union pension funds in the United States. Abacus Life’s management team expects to finish onboarding another 23 clients by the end of Q1 2025.
Speaking of developing new solutions to better serve clients, Abacus also recently launched the newest generation of its Abacus Policy Value Calculator, which helps insureds get an instant estimate of their policy’s value. This valuation tool has received over 150,000 individual submissions from insureds, which accounts to more than $87 billion in face value.
In addition to improving its product offering, Abacus Life also announced two key acquisitions which are expected to finalize before the end of 2024.
Abacus Life’s 2024 Buying Spree
Abacus Life has announced plans to acquire two major companies, which will add billions of dollars in assets under management (AUM) to the Abacus Life brand. These acquisitions will help Abacus Life continue to solidify itself as a leader in the alternative asset management industry:
- Acquisition of FCF Advisors: Abacus Life acquired FCF Advisors, a New York-based asset manager and index provider specializing in free cash flow-focused investment strategies. This acquisition will bring in $600 million in AUM.
- Acquisition of Carlisle Management Company: Abacus Life acquired Carlisle Management Company, a leading Luxembourg-based investment manager in the life settlement space. This acquisition will bring in roughly $2 billion in AUM.
These acquisitions are particularly noteworthy given Abacus Life went public in 2023 and today remains the only publicly traded alternative asset manager in the industry. Strategic acquisitions are typically a strategy that’s reserved for older, more mature companies. Seeing multiple acquisitions in one year from a company that just went public is a testament to Abacus Life’s financial strength and stability. It’s also a sign that the company’s management team is ambitious and exploring multiple avenues for growth.
Speaking of Abacus Life’s management team, the company also improved the quality of its senior leadership in Q3.
Expanding The Management Team
Abacus Life announced two strategic hires during Q3 2024, which will help bring expertise and guidance to the company’s upper management:
- Corey McLaren as Managing Director of Capital Markets: Mr. McLaren brings 15 years of experience in life settlement investment management at Spearhead Capital and FDO Partners.
- Robert F. Phillips as Senior Vice President of Investor Relations and Corporate Affairs: Mr. Phillips has 30 years of experience in capital markets and investor relations and will be a valuable addition to Abacus Life’s leadership team.
Both McLaren and Phillips will bring a wealth of knowledge and experience to Abacus, helping to guide the company forward through 2025 and beyond.
ABL Analyst Buy Ratings
Abacus Life has been garnering positive Buy Ratings from analysts, mainly due to its strong performance through 2024. Four major analysts have initiated Buy Ratings for ABL stock in recent months:
- Piper Sandler reiterated a Buy Rating for ABL on 11/8/24 with a price target of $13/share, representing a potential upside of 50% (at the time this was written).
- TD Cowen reiterated a Buy Rating for ABL on 11/7/24 with a price target of $14/share, representing a potential upside of 56% (at the time this was written).
- Northland Capital Markets initiated a Buy Rating ABL on 10/24/24 with a price target of $14/share, representing a potential upside of 56% (at the time this was written).
- B. Riley Securities reiterated a Buy Rating for ABL on 8/29/24 with a price target of $16/share, representing a potential upside of 85% (at the time this was written).
Abacus Life has enjoyed strong momentum in 2024 in terms of revenue growth, product development, and strategic management hires. It should be fairly unsurprising that Abacus Life now leads the life settlement industry in funds paid to clients in 2023 with a 26% market share, according to The Deal.
Investors – particularly those interested in attractive risk-adjusted returns with low correlation to other asset classes – will want to keep a close eye on ABL stock in 2025 and beyond.
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Source: Abacus Life (ABL) Continues Momentum With Strong 3rd Quarter
