Core Insights - Abacus Global Management reported record full-year revenue growth of 69% to $111.9 million for 2024, driven by increased active management revenue and policy originations [4][14] - The company achieved a fourth-quarter revenue increase of 40% year-over-year to $33.2 million, with policy originations growing by 63% to 1,034 for the full year [5][14] - Abacus is initiating its 2025 outlook for adjusted net income between $70 million and $78 million, representing growth of 51% to 68% compared to 2024 [7] Financial Performance - Full-year 2024 adjusted net income increased by 58% to $46.5 million, compared to $29.4 million in 2023 [14] - Adjusted EBITDA for 2024 grew 57% to $61.6 million, with an adjusted EBITDA margin of 55% [14][28] - The company reported a GAAP net loss attributable to shareholders of $24.0 million for 2024, compared to a net income of $9.5 million in the prior year [14] Operational Highlights - The company completed two strategic acquisitions and strengthened its executive team through key hires, enhancing its market capabilities [2] - As of December 31, 2024, Abacus had cash and cash equivalents of $128.8 million and total assets of $874.2 million [6][22] - The company successfully raised substantial equity capital and secured significant debt financing to optimize its capital structure [2] Market Position and Strategy - Abacus rebranded to better reflect its evolution and global market presence, indicating a strategic shift towards a broader market opportunity [2] - The company is well-positioned to capitalize on its momentum and drive long-term growth, with expectations of over 50% growth in adjusted net income for 2025 [2][7]

Group 1: Stock Market Corrections and Dividend Opportunities - Stock market corrections, defined as a decline of 10% or more from recent highs, present opportunities for dividend-seeking investors as falling stock prices lead to rising dividend yields [1] - The recent market correction has prompted increased purchases of dividend stocks, including Blackstone, Starbucks, and Verizon, which are viewed as attractive investments at this time [2] Group 2: Blackstone - Blackstone's stock has decreased nearly 30% from its recent peak, resulting in a dividend yield of 2.8%, significantly higher than the S&P 500's yield of 1.3% [3] - Unlike typical dividend stocks, Blackstone does not pay a fixed quarterly dividend; instead, it returns a significant portion of its distributable income through dividends and share repurchases, with a generally upward trend in payouts over the past 15 years [4] - The global alternatives market is projected to grow from $17 trillion at the end of 2023 to $30 trillion by 2030, which is expected to benefit Blackstone's alternative investment franchises [5] Group 3: Starbucks - Starbucks' stock has declined about 15% from its recent high, increasing its dividend yield to 2.5%, with a history of 14 consecutive years of dividend growth at a compound annual growth rate of 20% [8] - The company has over 40,000 stores globally and plans to continue expanding, albeit at a reduced pace compared to initial targets, which should support ongoing dividend increases [9][10] Group 4: Verizon - Verizon's stock has fallen approximately 6% from its recent peak, leading to a dividend yield of 6.2%, supported by a substantial free cash flow of $19.8 billion after capital expenditures, which comfortably covered its $11.2 billion in dividends [11] - The company is pursuing a $20 billion acquisition of Frontier Communications to enhance its fiber network, alongside significant investments in fiber and 5G, which are expected to bolster cash flow and support future dividend increases [12]

Investment Overview - Leon Cooperman, a billionaire hedge fund manager, manages over $3 billion with 47 different stocks in his portfolio as of 2025 [2][3] Largest Stock Investments - The five largest stock investments by Cooperman are: - Mr. Cooper Group (COOP): $275 million investment, 4.47% ownership [3] - Energy Transfer LP (ET): $248 million investment, 0.37% ownership [3] - Vertiv Holdings (VRT): $239 million investment, 0.56% ownership [3] - Apollo Global Management (APO): $229 million investment, 0.25% ownership [3] - WillScot Mobile Mini Holdings (WSC): $135 million investment, 2.18% ownership [3] Portfolio Characteristics - Cooperman's portfolio is noted for lacking typical high-profile stocks, with only one of the "Magnificent Seven" stocks, Alphabet, included [4] - The portfolio features relatively few household names, indicating a unique investment strategy [4] Company Descriptions - Mr. Cooper Group is a major player in the mortgage servicing industry [5] - Energy Transfer is involved in natural gas transportation and energy storage, offering a 6.8% dividend yield and has a market capitalization of $65 billion [5] - Vertiv provides essential power, cooling, and IT infrastructure services [5] - Apollo Global Management is an alternative asset manager with over $500 billion in assets under management [5] - WillScot Mobile Mini offers mobile storage solutions and modular buildings primarily for businesses [5]

Summary of Abacus Global Management (ABL) Conference Call Company Overview - **Company**: Abacus Global Management (ABL) - **Industry**: Life Settlements and Alternative Asset Management - **Public Listing**: NASDAQ since July 2023 - **Key Participants**: Robert Phillips (SVP, Investor Relations), David Jackson (IR Associate - Capital Markets) Core Business and Value Proposition - **Business Model**: Abacus specializes in life settlements, acquiring life insurance policies from owners and placing them with institutional investors [5][7] - **Market Size**: The U.S. has $13 trillion in life insurance policies, with 90% lapsing, indicating a significant opportunity for life settlements [9][44] - **Target Demographic**: Typically, policy owners are aged 65 or older, having owned their policies for over 20 years [10] - **Financial Metrics**: - Revenue growth exceeding 20% - Return on Equity (ROE) above 15% - Margins exceeding 50% [7] Financial Performance - **Q3 Revenue**: $29.1 million, slightly up from $28.1 million in Q2, with stable EBITDA [15][16] - **Capital Deployment**: $93.2 million in Q3 and $104.7 million in Q2 for acquiring policies [18] - **Policy Originations**: Expected to exceed 750 by the end of 2024 [18] Market Dynamics - **Institutional Interest**: Increased participation from institutional investors is seen as a tailwind, enhancing competition for life settlements and improving market health [22][39] - **Carrier Buybacks**: Insurers are increasingly looking to offload policies, which Abacus can acquire and manage effectively [19][20][21] Growth Initiatives - **Direct-to-Consumer Channel**: Generates 12,000 leads monthly, with a focus on financial planning and wealth management [26][29] - **ABL Tech**: A data tracking service for mortality, recently signed a contract with CalSTRS, the largest teachers' pension plan in the U.S. [31][32] - **Acquisitions**: Recent acquisitions of FCF Advisors and Carlisle Asset Management to enhance direct allocation to life settlements [30] Competitive Landscape - **Competitors**: Coventry is noted as a private competitor, but Abacus is the only public company in this space [37][38] - **Market Position**: Abacus leverages 30 years of experience and a strong network to maintain a competitive edge [39] Marketing Strategy - **Advertising Channels**: Primarily utilizes traditional media (TV and radio) to drive leads, particularly targeting audiences on Bloomberg, Fox Business, and CNBC [49][52] - **Lead Generation**: The majority of leads come from traditional advertising, with digital efforts being secondary [52] Conclusion - **Overall Assessment**: Abacus Life presents a compelling investment opportunity with a strong growth trajectory, high margins, and a unique position in the life settlements market, supported by increasing institutional interest and effective marketing strategies [33]