Alpha Alternative Assets Fund Builds Up Momentum
Alpha Alternative Assets Fund is a new interval fund focusing on esoteric and longevity based assets. In recent months it has made several key strategic investments, and has started to build fundraising momentum.
Alpha Alternative Assets Fund was formerly known as the A3 Credit Income Fund , and was managed by A3 Financial Investments, LLC. In September 2022, shareholders approved the appointment of a new advisor. The fund subsequently changed to its current name.
Alpha Growth Management LLC took over as manager of AACAX in September 2022. They were preparing to launch its own interval fund, but decided to step in as manager of an existing fund in order to get to market faster, and reduce launch costs.
Alpha Alternative Assets Fund Strategy.
Alpha Alternative Assets Fund seeks to open up an asset class that was previously only available to institutions and ultra high net worth individuals. The focus on esoteric and longevity assets is unique in the interval fund sector. In fact, Alpha Alternative Assets Fund is the first registered fund of its type in the world.
Examples of assets the fund is targeting include:
- Structured settlement receivables, portfolios of annuity payments backed by US-based insurances;
- Portfolios of pending personal injury lawsuits;
- Life insurance policies;
- Pharmaceutical and medical royalties.
This may seem like a broad range of unrelated assets, but according to a recent fund pitchbook, a common feature of all esoteric assets is a lack of compeition from other buyers.
In August 2023, Alpha Alternative Asset Fund made an investment in a charitable trust backed by life settlements set up to raise funds to search for a cure for Loeys-Dietz Syndrome. They also completed an investment in an SPV hybrid investment of income producing assets and life settlements. Subsequent to the end of the end of the third quarter, an investment from one of the Sponsor’s insurance company affiliates brought total AUM to just over $20 million. In the coming months, the fund is likely to continue making inroads in the broker-dealer and RIA channels.
Fund Structure
According to the most recent prospectus, Alpha Alternative Asset Fund offers two share classes: Class A(AACAX) and Class I(AAACAX). Class A Shares have a minimum investment of $2,500 for regular accounts and $1,000 for retirement, while Class I Shares have a minimum investment of $5,000. The share classes also differ in terms of fees. Class A Shares have a maximum sales load of 5.0% and a distribution fee of 0.25%. Class I Shares do not have any sales load or distribution fee.
Alpha Growth Management LLC serves as the fund’s adviser, and Haven Asset Management serves as the sub-adviser. The fund charges a management fee of 1.50% of net assets.
About Alpha Growth
Alpha Growth Management LLC is a wholly owned subsidiary of Alpha Growth PLC, a UK based financial advisory business with approximately $700 million in AUM. Alpha Growth PLC is listed on the London Stock Exchange with the symbol ALGW. In recent years they have been expanding in the UK and US through strategic acquisitions and joint ventures in the insurance and alternative investments space.
