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Alpha Growth shares surge after it announces big marketing push

Last updated: 08:51 09 Apr 2021 BST, First published: 07:51 09 Apr 2021 BST

Alpha Growth PLC -

Alpha Growth PLC (LON:ALGW) said the trend of growth and improved operational and financial performance continued in the first quarter of 2021.

The Black Oak Alpha Growth Fund saw US$5mln (£3.6mln) of additional inflows during the quarter. Assets under management (AuM) at the end of the quarter stood at US$25.5mln; at the end of 2020, AuM were said to be “over US$22mln”.

Since its inception 19 months ago, the Black Oak Alpha Growth Fund has achieved a net return of 15.65%, the company noted.

Alpha Growth, a specialist in the senior life settlement class, is looking to substantively increase the marketing of the Black Oak Alpha Growth Fund in 2021, to which end it has announced the appointment of Michael Molloy, who has significant experience within the alternative investment sector and who will be responsible for growing the fund.

"Michael is a key hire for the company, his sector knowledge and expertise further builds upon our teams' capability and I look forward to working closely with him as we continue to grow the business and deliver exceptional returns for our investors,” said Gobind Sahney, the executive chairman of Alpha Growth.

The company had previously announced it was in discussions with an asset management company about Alpha’s revolving credit facility; the unnamed asset management company is now planning to invest directly in a block of life settlement assets, which means Alpha Growth will benefit from the fee revenue associated with the ongoing management of these assets without the costs of a new structure.

The company expects to make a further update regarding this before the end of April.

“2020 was a foundational year for the fund and a significant growth year for the company overall. Despite the impact from COVID, we were able to implement various strategies across the company which are now enabling the phenomenal growth. During 2021 we will continue to further invest in these strategies to ensure we accelerate growth, increase AuM and substantially build our fee revenue,” Sahney said.

The key focus over the coming months will be completing the revolving credit facility; increasing AuM across the group; implementing its new digital marketing strategy; and executing on its build and buy strategy.

Shares in Alpha Growth were the second-best performers in London after the update, trading 19% higher at 4.35p. 

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