Abacus Global Management, Inc.

Company Overview

Business Model: Abacus Global Management, Inc. is a vertically integrated financial services company specializing in alternative asset management, data-driven wealth solutions, technology innovations, and institutional services. The Company leverages proprietary data analytics and industry expertise to optimize financial outcomes for individuals and institutions globally. Its core operations revolve around originating and managing longevity-based assets, primarily life insurance policies. Revenue is generated through origination fees, active management (trade spreads and realized returns on held policies), third-party portfolio servicing fees, asset management fees (based on Assets Under Management and performance), fixed annual contracts for technology services, and insurance commissions. The Company operates through four integrated verticals: Life Solutions, Asset Management, Private Wealth Management, and Health and Longevity Technology.

Market Position: Abacus Global Management, Inc. is a leading player in the life settlements industry, holding approximately 26% market share based on 2023 capital invested. The Company operates in 49 states, a key differentiator given the significant regulatory requirements. As of December 31, 2025, its Assets Under Management (AUM) reached approximately $3.33 billion. The Company transferred its listing to the New York Stock Exchange on December 30, 2025, reflecting its evolution into a scaled, diversified alternative asset manager. The U.S. life settlements market presents a substantial annual opportunity of $224 billion, with only about 2% market penetration in 2024, indicating significant growth potential for the Company. The underlying life insurance policies are characterized as a largely non-cyclical asset class with minimal payout risk and generally uncorrelated returns, backed by high-quality investment-grade insurance companies (over 90% rated "A" or better).

Recent Strategic Developments:

• Corporate Rebranding: Changed its name to Abacus Global Management, Inc. on February 27, 2025.
• Strategic Acquisitions (2024):
  • Acquired Carlisle Management Company S.C.A. and Carlisle Investment Group S.A.R.L. (collectively "Carlisle") on December 2, 2024, a Luxembourg-based investment manager in the life settlement space.
  • Acquired FCF Advisors, LLC ("FCF Advisors") on December 2, 2024, a New York-based asset manager and index provider specializing in free cash flow-focused investment strategies.
• Strategic Acquisitions (2025):
  • Acquired National Insurance Brokerage, LLC ("NIB") on April 24, 2025.
  • Acquired AccuQuote, an online life insurance brokerage company, on October 6, 2025, enhancing its financial services platform and expanding access to insurance solutions.
• Capital Markets & Funding:
  • Added to the Russell 2000® and Russell 3000® Indexes in September 2025.
  • Completed a $50 million investment-grade securitized note backed by life insurance assets in October 2025, establishing a repeatable, lower-cost funding mechanism.
• New Investment Strategy: Launched an asset-based finance (ABF) strategy within Abacus Asset Group in January 2026, targeting the $20 trillion-plus asset-based finance market.
• Shareholder Returns: Approved an annual cash dividend of $0.20 per share and a $10 million share repurchase program in November 2025.

Geographic Footprint: The Company's primary operational regions include the United States, where it is licensed as a life settlement provider in 49 states, and Luxembourg, where its Asset Management business operates through Carlisle. In 2025, the United States accounted for $202,360,482 of total revenue, Luxembourg for $29,928,823, and other regions for $2,948,331. The Company has 326 employees, with 25 based outside the United States.

Financial Performance

Revenue Analysis

Profitability Metrics:

• Gross Margin: 87.73%
• Operating Margin: 37.73%
• Net Margin: 15.86%

Investment in Growth:

• R&D Expenditure: Not explicitly stated as a separate line item, but the Company prioritizes investment in its technology and marketing infrastructure to drive growth.
• Capital Expenditures: $931,443 (2025)
• Strategic Investments:
  • Carlisle Acquisition: Approximately $145.7 million in combined Fixed Rate Senior Unsecured Notes and common stock (December 2024).
  • FCF Acquisition: Approximately $10.2 million in combined cash and common stock (December 2024).
  • NIB Acquisition: Approximately $2.1 million in cash (April 2025).
  • AccuQuote Acquisition: Approximately $9.3 million (note receivable as consideration) (August 2025).
  • $50 million investment-grade securitized note backed by life insurance assets (October 2025).

Business Segment Analysis

Asset Management

Financial Performance:

• Revenue: $33,845,393 (+836.6% YoY)
• Cost of Revenue: $13,856,483 (+630.5% YoY)
• Gross Profit: $19,988,910 (+1064.3% YoY)
• Key Growth Drivers: The significant increase in revenue was primarily driven by a full year of management fees from the Carlisle Funds (approximately $26.4 million), ETF Funds (approximately $4.0 million), and LP Funds (approximately $1.2 million) following the December 2024 acquisitions. The launch of the asset-based finance (ABF) strategy in January 2026 is expected to further contribute to growth.

Product Portfolio:

• Manages alternative investment funds primarily investing in insurance policy settlement contracts.
• Manages Exchange-Traded Funds (ETFs) focused on free cash flow equity strategies, offering over 50 customizable index strategies.
• The ABF strategy targets a broad range of asset classes including consumer credit, equipment finance, receivables, small business loans, intellectual property rights, and contractual cash flows.

Market Dynamics:

• Serves primarily institutional investors and select private clients.
• Specializes in uncorrelated and longevity-based assets, fixed-income replacement strategies, and free cash flow-based investment solutions.
• Assets Under Management (AUM) as of December 31, 2025, totaled $3,278,465,456, comprising $2,427,858,453 in Longevity Funds and $850,607,003 in ETF Funds.
• Average management fees were 1.36% for Longevity Funds and 0.49% for ETF Funds in 2025.

Life Solutions

Financial Performance:

• Revenue: $200,675,058 (+85.3% YoY)
• Cost of Revenue: $12,896,503 (+39.5% YoY)
• Gross Profit: $187,778,555 (+89.6% YoY)
• Key Growth Drivers: The increase was mainly due to a $127,743,398 increase in realized gains from life insurance policies. The average realized gain per policy sold improved from 24.9% in 2024 to 32.5% in 2025, reflecting increased institutional demand. Expanded capital from a $90 million equity raise, a $100 million debt facility, and a $50 million delayed draw financing enabled the acquisition of a larger policy portfolio. Acquisitions of AccuQuote and NIB also contributed new insurance commissions revenue.

Product Portfolio:

• Specializes in policy origination, underwriting, and active portfolio management of life insurance policies.
• Offers a premier digital life insurance origination platform (AccuQuote) for comparing quotes from multiple carriers.
• Provides third-party portfolio servicing for institutional clients.
• Generates insurance commissions from the sale and renewal of policies.

Market Dynamics:

• A leading buyer of life insurance policies in the U.S. for over 20 years, leveraging a network of approximately 30,000 financial advisors and agents, direct-to-consumer channels, and traditional intermediaries.
• Utilizes a proprietary "heat-map" technology platform for risk assessment and valuation.
• In 2025, 1,188 policies were bought (+30.0% YoY) and 1,059 policies were sold (+127.3% YoY).
• The Company serviced 3,628 policies with a face value of $7,821,780,432 in 2025.

Technology Services

Financial Performance:

• Revenue: $717,185 (+2032.7% YoY)
• Cost of Revenue: $2,105,048 (+803.5% YoY)
• Gross Loss: $(1,387,863)
• Key Growth Drivers: Revenue activity commenced in December 2024, and the increase in 2025 was driven by an increase in customers and corresponding lives tracked, which grew to approximately 2.8 million as of December 31, 2025, from 0.7 million in 2024.

Product Portfolio:

• Provides real-time mortality verification services.
• Offers missing participant verification.
• Delivers other specialized services for the life insurance market.

Market Dynamics:

• Serves pension funds, government agencies, insurance-related businesses, and other entities.
• Fees are based on fixed annual contracts.
• Leverages proprietary technology built on health and longevity data sets.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: $43,783,458 was spent to repurchase 6,357,892 shares in 2025. As of December 31, 2025, 7,406,118 shares were held as treasury stock.
• Dividend Payments: $19,550,571 was paid in December 2025, representing an annual dividend of $0.20 per share.
• Future Capital Return Commitments: $4,191,405 remained available for repurchases under the approved plan as of December 31, 2025. The Company anticipates paying comparable annual cash dividends in the future.

Balance Sheet Position:

• Cash and Equivalents: $38,112,332 as of December 31, 2025.
• Total Debt: $405,818,592 as of December 31, 2025.
• Net Cash Position: $(367,706,259) (Total Debt less Cash and Equivalents).
• Debt Maturity Profile (undiscounted, as of December 31, 2025):
  • 2026: $116,390,540
  • 2027: $1,500,000
  • 2028: $150,993,674
  • 2029: $1,500,000
  • 2030: $142,875,000
  • Total: $413,259,214

Cash Flow Generation:

• Operating Cash Flow: $(25,680,465) in 2025, an improvement from $(208,810,444) in 2024.

Operational Excellence

Production & Service Model: The Company's operational philosophy is centered on leveraging proprietary technology and deep industry expertise across its divisions. In Life Solutions, it employs a highly efficient origination platform and proprietary technology for policy sourcing, screening, and underwriting. The "heat-map" technology platform is crucial for risk assessment and active portfolio management, enabling dynamic decisions to either trade policies for spreads or hold them for maturity. Policy servicing for third parties further supports data analytics and industry presence. The Asset Management division utilizes proprietary analytics and market insights to identify unique investment opportunities and deliver consistent performance. Abacus Intel (Technology Services) develops and deploys technology products for real-time mortality and missing participant verification, revolutionizing life planning for institutional clients.

Supply Chain Architecture: Key Suppliers & Partners:

• Medical Underwriting Firms: Provide critical life expectancy estimates for policy valuation.
• Financial Advisors & Agents: A network of approximately 30,000 financial advisors and agents serves as a primary channel for life settlement origination.
• Life Settlements Intermediaries: Traditional brokers who submit policies.
• Insurance Carriers: Counterparties for life insurance policies, with over 90% holding an "A Rating" or better.
• Carlisle Management Company S.C.A. / Carlisle Investment Group S.A.R.L. (Carlisle): A Luxembourg-based investment manager, a key component of the Asset Management segment.
• FCF Advisors, LLC (FCF): A New York-based asset manager and index provider, integrated into the Asset Management segment.
• AccuQuote: An online life insurance brokerage company, enhancing digital origination capabilities.
• Sagard Senior Lending Partners Holdings II LP and Värde Partners: Lenders for the Senior Secured Credit Facility.

Facility Network:

• Corporate Headquarters: Orlando, Florida, occupying approximately 19,000 square feet under a lease expiring in December 2029.
• Asset Management Office: Luxembourg, with approximately 2,000 square feet of leased office space, expiring in July 2033.
• Research & Development: While no dedicated R&D facilities are specified, the Company's emphasis on proprietary technology implies significant internal development capabilities.

Operational Metrics:

• Policies Bought (Fair Value Method): 1,188 in 2025 (+30.0% YoY).
• Policies Sold (Fair Value Method): 1,059 in 2025 (+127.3% YoY).
• Average Realized Gain on Policies Sold: 32.5% in 2025 (up from 24.9% in 2024).
• Assets Under Management (AUM): $3,087,267,657 in 2025 (+19.0% YoY).
• Policies Serviced: 3,628 in 2025 (+72.4% YoY), representing a face value of $7,821,780,432.
• Lives Tracked (Technology Services): Approximately 2.8 million as of December 31, 2025.
• Employee Headcount: 326 as of December 31, 2025.

Market Access & Customer Relationships

Go-to-Market Strategy: The Company employs a multi-channel approach to market access. Distribution Channels:

• Direct Sales: Leverages a robust network of approximately 30,000 financial advisors and agents for life settlement origination.
• Channel Partners: Engages with traditional life settlements intermediaries.
• Digital Platforms: Utilizes direct-to-consumer advertising (radio, television), a proprietary online "Policy Value Calculator," and the AccuQuote digital insurance marketplace to reach a broader client base and offer comparative insurance quotes.
• Institutional Sales: The Abacus Asset Group primarily targets institutional investors and select private clients for its alternative asset management offerings.

Customer Portfolio: Enterprise Customers:

• Tier 1 Clients: Includes pension funds, government agencies, and insurance-related businesses for its Technology Services division.
• Strategic Partnerships: Engages in strategic relationships with institutional investors, financial advisors, insurance carriers, and reinsurers.
• Customer Concentration: As of December 31, 2025, four related party customers accounted for 56%, 12%, 11%, and 10% of total related party receivables. One related party customer accounted for 10% of life solutions revenue from life settlement contract sales. Three customers accounted for 15% (related party), 13% (related party), and 12% (related party) of portfolio servicing revenue. Five customers accounted for 36% (related party), 18% (related party), 12%, 11% (related party), and 10% (related party) of asset management revenue.

Geographic Revenue Distribution:

• United States: $202,360,482 of total revenue in 2025.
• Luxembourg: $29,928,823 of total revenue in 2025.
• Other: $2,948,331 of total revenue in 2025.
• Growth Markets: The Company is focused on increasing market penetration in the U.S. life settlements market through enhanced awareness and education initiatives.

Competitive Intelligence

Market Structure & Dynamics

Industry Characteristics: The Company operates within the U.S. life settlements industry, a large and growing market with an estimated $14 trillion in face value of in-force life insurance policies. The annual market opportunity for lapsed policies is approximately $224 billion, yet the industry captured only about 2% in 2024, indicating significant potential for expansion. The total face value of life insurance policies is projected to grow at a 5% CAGR from approximately $6 billion in 2022 to $8 billion in 2028. High regulatory requirements and unique licensing create substantial barriers to entry.

Competitive Positioning Matrix:

Direct Competitors

Primary Competitors: The Company faces competition from numerous life insurance settlement originators, servicers, and investors, as well as alternative asset managers, wealth advisors, and mortality verification companies. Direct competition also comes from originating life insurance companies that offer "enhanced cash surrender value payments" to repurchase policies, and from life insurance brokers and other investment funds.

Emerging Competitive Threats: Potential threats include new entrants, disruptive technologies, and alternative solutions. The industry also faces ongoing political opposition from life insurance companies and risks from negative public perception, as well as potential fraud in policy origination or sales.

Competitive Response Strategy: Abacus Global Management, Inc. plans to maintain its competitive advantage by continuously investing in technology and marketing infrastructure to drive awareness and education in the life settlements market. The Company is expanding its team and outreach efforts to fuel origination growth. It is also transitioning its business model to increase the proportion of policies held on its balance sheet and pursuing securitization activities to achieve a lower cost of capital and scale. Furthermore, the Company is scaling its Asset Management division and fee-related earnings through strategic acquisitions and new investment offerings like the ABF strategy. Compliance with extensive government regulations across its operating jurisdictions remains a core focus.

Risk Assessment Framework

Strategic & Market Risks

Market Dynamics:

• Valuation Uncertainty: The valuation of life insurance policies is inherently uncertain, tied to actual maturity dates and life expectancies. Erroneous valuations could materially impact the business.
• Life Expectancy Forecasting: Inaccurate life expectancy forecasts or general increases in longevity due to healthcare advancements could lead to lower returns on life settlement policies.
• Policy Availability: The Company's ability to acquire policies is limited by market availability and competition, which could be reduced by economic improvements or increased competition.
• Competition: Increased competition from life insurance companies (repurchase offers), other life settlement providers, and investment funds could adversely affect policy acquisition and margins.
• Public Perception & Political Opposition: Historical negative public perception and political opposition from life insurance companies could impact the value and liquidity of investments.
• Liquidation Risk: The Company may face challenges in liquidating its life insurance policies due to market illiquidity, valuation uncertainties, or tax consequences, affecting cash flow needs.
• Credit Risk of Insurance Companies: The Company bears the credit risk of life insurance companies; their failure or bankruptcy could materially impact the value and collectability of policy payouts.

Operational & Execution Risks

Supply Chain Vulnerabilities:

• Third-Party Reliance: Reliance on third-party data and systems for policy tracking, servicing, and origination exposes the Company to risks of errors or disruptions.
• Premium Payment Failure: Failure to accurately and timely track and pay premiums on held policies could result in policy lapses and investment losses.
• Increased Cost of Insurance: Life insurance companies may increase premium costs, adversely affecting investment returns.
• Intellectual Property Protection: Inability to adequately protect proprietary technology, know-how, and brand could harm the business.
• Talent Retention: Success depends on experienced management and talented employees; inability to attract or retain them could harm competitiveness.
• Internal Control Deficiencies: Failure to maintain adequate financial, IT, and management controls could lead to material weaknesses and financial reporting errors.

Financial & Regulatory Risks

Market & Financial Risks:

• Indebtedness: Outstanding and future indebtedness (approximately $406 million as of December 31, 2025) could adversely affect financial and operational flexibility, including debt service obligations and compliance with restrictive covenants.
• Capital Raising: Ability to timely raise capital in the future may be limited or unavailable on acceptable terms, impacting growth opportunities.
• Accounting Estimates: Use of different estimates and assumptions in accounting policies, or changes in accounting standards, could materially impact reported financial condition and results.
• Foreign Currency Risk: International operations expose the Company to fluctuations in exchange rates (e.g., Euro vs. U.S. dollar).

Regulatory & Compliance Risks:

• Federal Securities Laws: Risk that life settlements could be deemed securities, leading to significant additional regulatory burdens and investment limitations.
• State Securities Laws: Potential non-compliance with U.S. state securities laws could result in fines, sanctions, or rescission of transactions.
• Investment Company Act: Risk of being required to register as an investment company, necessitating a substantive change to the business model.
• U.S. Privacy Laws: Subject to numerous state and federal privacy laws (e.g., TCPA, GLBA, HIPAA, CCPA); failure to comply could lead to investigations, litigation, fines, and reputational harm.
• Insurable Interest Lawsuits: Lawsuits challenging "insurable interest" in policies could invalidate investments, particularly concerning "Stranger-Originated Life Insurance" (STOLI).
• Tax Law Changes: Changes in tax laws or their interpretation could negatively impact cash flows and results of operations.
• Increased Government Regulation: Potential for additional or different government regulation in the future could restrict business operations and increase administrative burdens.
• International Regulatory Compliance: Carlisle is regulated by Luxembourg's CSSF and subject to the AIFM Directive, imposing specific requirements and restrictions.

Geopolitical & External Risks

Geopolitical Exposure:

• International Operations Risks: International operations (e.g., Luxembourg) pose risks related to staffing, data systems, tax changes, protectionism, government actions, and geopolitical instability.
• Trade Relations: Impact of trade tensions and policy changes on business.
• Sanctions & Export Controls: Compliance requirements and business limitations due to trade restrictions.

Innovation & Technology Leadership

Research & Development Focus: The Company's innovation strategy is deeply embedded in its core operations, leveraging technology to enhance efficiency, valuation accuracy, and market reach. Core Technology Areas:

• Risk Rating Heat Map: A proprietary platform that assesses the risk of life insurance contracts on a 1-5 scale, incorporating factors like duration, face value, policy type, carrier rating, life expectancy, and survival probability.
• Policy Value Calculator: An online tool that uses proprietary data to provide instant policy valuations for individuals and financial advisors.
• Abacus Analytics: A standard pricing and valuation platform designed to provide comprehensive visibility into industry transactions and portfolio assessment.
• Longevity Market Assets (Abacusmarketplace.com): A proprietary technology platform aimed at facilitating tertiary trading, servicing, and valuation within the life settlement industry, enhancing market liquidity and transaction efficiency.
• Abacus Intel Platforms: Develops technology products for real-time mortality verification, missing participant verification, and other services for the secondary life insurance market, emphasizing speed and accuracy.

Intellectual Property Portfolio:

• Patent Strategy: While not explicitly detailed, the Company relies on trademarks to protect its intellectual property.
• Trademarks: Holds federal registrations for "Abacus Settlements," "Abacus Life," and "Abacus Global Management."
• Licensing Programs: Not explicitly detailed.
• Proprietary Software: Develops and maintains internal-use software for pricing, valuation, and risk analysis of life settlement policies.

Technology Partnerships: Not explicitly detailed, but the Company's business model implies collaborations with medical underwriting firms and financial advisory platforms.

Leadership & Governance

Executive Leadership Team

Leadership Continuity: The Company's success is stated to depend on the talents and efforts of its highly skilled individuals and its ability to attract, retain, and motivate experienced management and talented investment professionals.

Board Composition: The Board of Directors is responsible for risk management oversight, with cybersecurity oversight delegated to the Audit Committee. Specific details regarding board independence, expertise, and committee structure are incorporated by reference to the Company's Proxy Statement.

Human Capital Strategy

Workforce Composition:

• Total Employees: 326 as of December 31, 2025.
• Geographic Distribution: 25 employees are based outside of the United States.
• Skill Mix: The Company emphasizes the importance of highly skilled individuals, including talented investment professionals, for its success.

Talent Management: Acquisition & Retention:

• Hiring Strategy: The Company has increased its total employee headcount to meet growing demand and support its growth strategy.
• Retention Metrics: Nearly 80% of employees are shareholders, fostering an ownership mentality that is believed to drive company performance.
• Employee Value Proposition: The Company offers a Long-Term Equity Compensation Incentive Plan, including restricted stock units (RSUs), performance stock units (PSUs), stock options, and unrestricted shares of common stock.

Diversity & Development:

• Development Programs: The Long-Term Incentive Plan provides equity-based awards to officers, employees, and directors.

Environmental & Social Impact

This section is omitted as no material information was explicitly stated in the provided 10-K filing.

Business Cyclicality & Seasonality

Demand Patterns:

• Seasonal Trends: Not explicitly detailed in the filing.
• Economic Sensitivity: The Company describes life insurance policies as a "largely non-cyclical asset class." Their underlying value tends to appreciate over time as policyholders age, largely independent of broader trading market conditions. However, the supply of life insurance policies in the secondary market can be influenced by economic conditions (e.g., higher investment returns elsewhere might reduce the need for policyholders to sell).
• Industry Cycles: The life settlements industry's growth is tied to increasing awareness and education about monetizing life insurance policies.

Planning & Forecasting: The Company's planning includes continued investment in technology and marketing infrastructure to drive awareness and education, aiming to increase market penetration.

Regulatory Environment & Compliance

Regulatory Framework: Industry-Specific Regulations:

• Life Settlement Provider: The Company operates as a licensed life settlement provider in 49 states, adhering to state-specific laws, regulations, and licensing requirements.
• Insurance Laws: Compliance with policyholder-facing consumer protection disclosure requirements is a routine part of its business.
• Federal Securities Laws: Non-variable, non-fractionalized life insurance policies are not considered securities under federal securities laws. The Company operates a limited purpose broker-dealer for transactions in variable and fractionalized policies, which are expected to represent less than 20% of its total policy holdings.
• International Compliance: Carlisle and the funds it manages are licensed and authorized in Luxembourg, regulated by the Commission de Surveillance du Secteur Financier (CSSF) and subject to the European Union's Alternative Investment Fund Managers (AIFM) Directive.

Trade & Export Controls: The Company must comply with differing foreign laws, including anti-money laundering, counter-terrorist financing, and anti-corruption rules, as well as regulations applicable to U.S. business operations abroad.

Legal Proceedings: The Company is occasionally involved in various civil actions as part of its normal course of business. As of December 31, 2025, it is not a party to any litigation deemed material to its ongoing operations. However, the Company faces risks from potential claims by life insurance companies, individuals, or regulatory authorities regarding fraud or misconduct in the secondary market.

Tax Strategy & Considerations

Tax Profile:

• Effective Tax Rate: The Company's effective income tax rate was 29.3% for 2025, compared to (28.2)% for 2024.
• Rate Drivers: The 2025 rate was mainly influenced by state income taxes and permanent differences related to IRS Section 162(m) limitations and IRS Section 264(f) disallowed interest.
• Tax Reform Impact: The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, made revisions to the U.S. tax code, including modifications to fixed asset depreciation, limitations on interest expense deductions, and international tax provisions. The OBBBA did not have a significant impact on the Company's consolidated financial statements for 2025.

Insurance & Risk Transfer

Risk Management Framework: The Company's risk management framework includes insurance coverage designed to address certain aspects of cyber risks. However, there is no assurance that such coverage would be sufficient for all potential losses or claims.

Subsequent Events

Investment Acquisition: On March 12, 2026, Abacus Global Management, Inc. announced a $52.9 million acquisition of a minority position in Manning & Napier, a wealth advisory firm, to further its strategic goals.