DALLAS - Beneficient Company (NASDAQ: BENF), a provider of liquidity solutions for alternative assets, has announced it will finance liquidity transactions for three funds managed by ff Venture Capital. Upon completion, this could potentially increase the collateral for Beneficient's loan portfolio by up to $121.5 million, contingent upon full participation from the limited partners involved.
The transactions involve the option for limited partners to exchange their interests in the funds' alternative assets for up to approximately $62 million in shares of Beneficient's Resettable Convertible Preferred Stock.
This Preferred Stock is convertible into the company's Class A common stock, accompanied by potential earnout payments over a ten-year period. The closing of these transactions, expected in the third quarter of 2024, is subject to shareholder approval and other closing conditions.
If all limited partners agree to participate, Beneficient will have completed over $1.1 billion of Net Asset Value (NAV) in liquidity transactions with general partners through fund restructurings and continuation vehicles. ff Venture Capital will continue to manage the alternative assets acquired by the special purpose continuation vehicles created for this transaction.
Brad Heppner, CEO and founder of Beneficient, emphasized the transaction's role in providing new liquidity avenues for valuable alternative assets and enabling general partners to retain some upside potential for their limited partners. John Frankel, Founding Partner of ff Venture Capital, expressed satisfaction in offering this creative liquidity solution to their limited partners.
Beneficient aims to democratize alternative asset investments by offering liquidity exit solutions to mid-to-high net worth individuals and smaller institutions. Its technology-enabled platform includes the AltQuote™ tool and the AltAccess® portal, which facilitate early exit opportunities, custodial services, and investment decision-making analytics.
The Preferred Stock to be issued has not been registered under the Securities Act of 1933 and may not be sold in the U.S. absent registration or an exemption from registration requirements. This press release is based on a press release statement and does not constitute an offer to sell or a solicitation to buy any securities.
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