Alpha Alternative Assets Fund
(AAACX – I Shares)
(AACAX – A Shares)

The Alpha Alternative Assets Fund’s (the “Fund”) investment objective is current income and long-term capital appreciation.

NAV (6/12/24)

$6.21
$6.14

Ticker

AAACX
AACAX

Alpha Alternative Assets Fund

The Fund seeks to achieve its investment objective by investing primarily in “longevity-based assets.” Longevity-based assets include financial instruments across a range of asset types, qualities, and sectors that produce returns contingent upon (i) the continued aging of the U.S. and global population, and (ii) individual life expectancies within the 70+ age cohort.

Specifically, longevity-based assets consist primarily of derivatives of life insurance and annuity policies known as life settlements and structured settlements; a broader definition includes equity and debt securities of life insurance companies; pharmaceutical and medical patent royalties; and real estate based assets including reverse mortgages and tax liens (lending products used by homeowners as they age), real estate lending secured by senior housing, assisted living facilities, hospitals and other geriatric specific healthcare facilities.

  • Growth of the aging population
  • Investor demand for uncorrelated strategies
  • Growth of portfolio alternatives
  • Experienced team with concentrated background alternative investments and portfolio management
  • Active Management of multiple fund “Sleeves” through the Adviser and Sub-Adviser
  • Carefully selected managers for acquired securities
  • Transparent actuarial advice and valuation policies
  • Liquid and Illiquid “Sleeve” of Portfolio
  • Sub-adviser seeks to mitigate the drag of uninvested cash by investing in liquid securities
  • Illiquid sleeve allows for potential enhanced returns of long-term products
  • Institutional investment access sought by the Fund
  • Emphasis on low correlation to traditional debt and equity markets
  • Approach seeks to withstand volatile market cycles

Overview

The majority of the portfolio is typically comprised of securities with underlying life and structured settlements – private equity, private credit, and hybrids- sourced from issuers with deep experience in the industry. The Adviser works closely with these issuers in acquiring or structuring securities for the Fund. Minority positions in other longevity assets, as broadly defined, may occur on an opportunistic basis where the overlay of an actuarial analysis can be made on the underlying assets of the security that meets the desired criteria.

In order to maintain liquidity of the Fund and enhance returns, the Adviser allocates uninvested cash (typically up to 25% of the portfolio) to the investment sub-adviser, Haven Asset Management (Interval Funds) LLC to invest in highly liquid, high yield securities.

Manager’s Expertise

The principal elements of the Investment Manager’s investment process include: (i) opportunity identification and analysis; (ii) portfolio construction; (iii) liquidity management; and (iv) investment monitoring. The team relies on expertise in the following areas:

Actuarial Science

  • Life-Contingent Analysis
  • Aging Population Trends
  • Actuarial Analysis
  • Life Insurance Underwriting

About the Managers

Alpha Growth Management

Alpha Growth Management Inc (“AGM”), a wholly-owned subsidiary of Alpha Growth PLC, serves as the Fund’s Investment Manager. AGM specializes in alternative investment strategies in Insurance and Longevity Assets. While overseeing and monitoring all investment activity of the Fund, AGM is directly responsible for the management of the “Illiquid” sleeve of the Fund.

Alpha Growth PLC is a London Stock Exchange listed company specializing in longevity asset management. Through its subsidiaries and operating companies, Alpha Growth PLC currently has over $340 million of assets under management as of 6/30/2022.

Through an emphasis on transparency, experience, and strong industry relationships, Alpha Growth PLC has positioned itself as a leader in the field of longevity assets.

Haven Asset Management (Interval Funds) LLC serves as the Fund’s Sub-Adviser, providing expertise and portfolio management services to the “Liquid” sleeve of the Fund. Haven’s portfolio managers bring over 20 years in fixed-income management.

With a track record in fixed-income portfolio management, Haven’s strategic partnership with Alpha Growth unites two specialized enterprises to create an innovate alternative investment product.

Adviser: Portfolio Manager

Gobind Sahney

Gobind Sahney has served as portfolio manager of the Fund since September 1, 2022.

Gobind Sahney has served as portfolio manager of the Fund since September 1, 2022. Gobind is one of the most experienced and recognised professionals within the alternative asset management sector. In addition to Alpha Growth, he is currently Director of Alpha Longevity Management Limited, an investment management company regulated and licensed by the Financial Services Commission of the British Virgin Islands.

He has performed at senior executive level within multiple organisations that specialise in distressed debt and discounted assets totalling in excess of $750m across North America, Europe and the UK. Additionally, Gobind was the Chairman of Stratmin Global Resources plc. His involvement began with its investment and turnaround which consisted of £2 million in distressed assets. As Chairman, he organized and executed a turnaround through the liquidation of those assets and the identification and reverse takeover of a mining company and the associated multi-million pound fundraise.

He has spoken as a subject matter expert on distressed debt and discounted asset investing at ACA International conferences in the US, and at Credit Services Association conferences in the UK. Gobind is a graduate of Babson College, Wellesley, Massachusetts, and holds a Bachelors degree in accounting and finance. He also served on the board of trustees of Babson College from 2001 to 2010.

Adviser: Portfolio Manager

Jason Sutherland

Jason Sutherland has served as portfolio manager of the Fund since September 1, 2022.

Jason Sutherland has served as portfolio manager of the Fund since September 1, 2022.

Mr. Sutherland is the founder and Senior Partner of Citadel Legal Services LLC, and represents clients across North America, Europe and Asia, predominantly within the insurance backed assets industry. Mr. Sutherland is also the Senior Vice President of Capital Markets and Senior Counsel for DRB Financial Solutions which is majority owned by the Blackstone Tactical Opportunities Group.

Since joining DRB in 2015, Mr. Sutherland has negotiated and structured multiple warehousing facilities of up to $600m. He also launched the first ever AAA rated placements of mortality backed linked annuity receivables totalling $151m. Mr. Sutherland recently ran $3bn of policies under the Lamington Road Fund in Dublin, Ireland which was acquired by Emergent Capital, ran Citadel’s London office at the same time, and was Managing Director of DLP funding group out of London under Peach Holdings LLC, with $1.5bn under management. Prior to that Mr. Sutherland spent 12 years with the Peach Holdings Group, most recently as Managing Director of Legal and operations for Peachtree Asset Management based in London and Luxembourg, a Global leader in uncorrelated investments for institutional clients, where he obtained FCA approval, guiding the fundraising efforts, and coordinating with regulatory bodies in UK, US, Cayman Islands, Luxembourg and Ireland. Mr. Sutherland received his Juris Doctorate in Boston in 1999 and was subsequently admitted to the State Bar of Georgia. Mr. Sutherland is also a member of the New York Bar, United States Supreme Court, Georgia Supreme Court among others, and maintains an FCA CF1, CF3, CF10 and CF11.

Subadviser: Portfolio Manager

Max Holmes

Max Holmes has served as portfolio manager of the Fund since October 1, 2022.

Max Holmes has served as portfolio manager of the Fund since October 1, 2022. Mr. Holmes, the Chief Investment Officer of the Sub-Advisor, has a long record of investment experience, particularly in the fixed income markets, and has been previously associated with three registered investment advisors: (1) Jan 2002 to May 2005, Managing Director and portfolio manager at D. E. Shaw & Co., L.P., one of the largest hedge fund managers in the world, currently with $37.6 billion of AUM; (2) May 2005 to May 2012, Founder and Chief Investment Officer of Plainfield Asset Management LLC, with peak $5.4 billion of peak AUM (de-registered in good standing); and (3) March 2019 to May 2020, Chief Investment Officer of Haven Asset Management (Insurance) LLC (de-registered in good standing when the affiliated insurance company client was to be sold). Since January 2015, Mr. Holmes has been a Senior Advisor to American Industrial Partners, a private equity fund manager and registered investment advisor, currently with $8.0 billion of AUM. Mr. Holmes also previously held senior positions with RBC Capital Markets, Gleacher NatWest Inc. and Salomon Brothers Inc (in New York) and Drexel Burnham Lambert (in Beverly Hills, California). Mr. Holmes started his career as a practicing attorney with Vinson & Elkins (in Houston Texas). Mr. Holmes received a J.D. from Columbia Law School in 1984, an M.B.A. from Columbia Business School in 1984, and a B.A. from Harvard College in 1981. Since 1993, Max Holmes has taught “Bankruptcy and Reorganization” at Stern Graduate School of Business at New York University, where he remains an Adjunct Professor of Finance.

Literature and Fund Documents

Download materials to learn more about Alpha Alternative Assets Fund 

Prospectus

Download

Statement of Additional Information (SAI)

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Repurchase Offer 6/28/2024

AAAF Repurchase Offer – 6/28/2024

Important Disclosure Information


1
Pursuant to an Investment Advisory Agreement between the Fund and the Adviser (the “Advisory Agreement”), and in consideration of the advisory provided by the Adviser to the Fund, the Adviser is entitled to receive a monthly fee at the annual rate of 1.50% of the Fund’s average daily net assets. The services provided by the Adviser to the Fund, the Adviser is entitled to receive a monthly fee at the annual rate of 1.50% of the Fund’s average daily net assets. The sub-Adviser is paid by the Adviser.

2 The Adviser and the Fund have entered into an Expense Limitation Agreement under which the Adviser has agreed, until at least January 31, 2024 to waive its management fees and to pay or absorb the ordinary operating expenses of the Fund and the organizational and offering expenses of the Fund (excluding interest, dividends, amortization/accretion and interest on securities sold short, brokerage commissions, acquired fund fees and expenses, distribution and shareholder servicing fees, and extraordinary expenses), to the extent that its management fees plus the Fund’s expenses exceed 2.40% per annum of the Fund’s average daily net assets attributable to Class I Shares. The Expense Limitation Agreement may not be terminated by the Adviser, but it may be terminated by the Board of Trustees, upon 60 days written notice to the Adviser.

This is neither an offer to sell nor a solicitation to purchase any security. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Alpha Alternative Assets Fund (the “Fund”). Past performance is not a guarantee of future results. Investing in the Fund involves risks, including the risk that you may receive little or no return on your investment or that you may lose part or all of your investment. Alpha Alternative Assets Fund is formerly known as A3 Alternative Income Fund. This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product or be relied upon for any other purpose.

Investing in the Fund’s shares involves risks, including the following:
– The Fund’s shares have limited pricing or performance history.
– Shares of the Fund will not be listed on any securities exchange, which makes them inherently illiquid.
– There is no secondary market for the Fund’s shares, and it is not anticipated that a secondary market will develop.
– The shares of the Fund are not redeemable.
– Although the Fund will offer to repurchase at least 5% of outstanding shares on a quarterly basis in accordance with the Fund’s repurchase policy, the Fund will not be required to repurchase shares at a shareholder’s option nor will shares be exchangeable for units, interests or shares of any security.
– The Fund is not required to extend, and shareholders should not expect the Fund’s Board of Trustees to authorize, repurchase offers in excess of 5% of outstanding shares.
– Regardless of how the Fund performs, an investor may not be able to sell or otherwise liquidate his or her shares whenever such investor would prefer and, except to the extent permitted under the quarterly repurchase offer, will be unable to reduce his or her exposure on any market downturn.
– If and to the extent that a public trading market ever develops, shares of closed-end investment companies, such as the Fund, may have a tendency to trade frequently at a discount from their NAV per share and initial offering prices. An investment in the Fund’s shares is not suitable for investors who cannot tolerate risk of loss or who require liquidity, other than liquidity provided through the Fund’s repurchase policy.
– Alternative investments are highly speculative and involve a great degree of risk and are not suitable for all investors. Full loss of principal is possible.
– The fund may engage in the use of leverage and other speculative investment practices, such as short sales, options, derivatives, futures and illiquid investments that may increase the risk of investment loss.
– Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost.

BEFORE INVESTING YOU SHOULD CAREFULLY CONSIDER THE FUND’S INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES. THIS AND OTHER INFORMATION IS IN THE PROSPECTUS. PLEASE READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST.

 

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