Abacus Global Management, Inc.

Good day, ladies and gentlemen, and thank you for standing by. Welcome to Abacus Global Management's fourth quarter 2024 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. Please note this event is being recorded. I'd now like to turn the call over to Robert Phillips. Abacus Global Management's Senior Vice President of Investor Relations and Corporate Affairs. Please go ahead.

Thank you, Operator, and thank you, everyone, for joining Abacus Global Management's fourth quarter and full year 2024 earnings call. Here with me today are Jay Jackson, Chairman and Chief Executive Officer, and Bill McCauley, Chief Financial Officer. This afternoon at 4.15 p.m. Eastern Time, Abacus Global Management released its fourth quarter 2024 results. This afternoon's call will allow participants to ask questions about our results. Before we begin, Abacus Global Management refers participants on this call to the investor webpage, ir.abacusgm.com, for the press release, the investor information, and filings with the SEC for a discussion of the risks that can affect the business. Abacus Global Management specifically refers participants to the presentation furnished today on Form 8K with the Securities and Exchange Commission and to remind listeners that some of the comments today may contain forward-looking statements and, as such, will be subject to risks and uncertainties which, if they materialize, could materially affect results. For more information on the risks, uncertainties, and assumptions relating to forward-looking statements, please refer to Abacus Global Management's public filings. During the call, we will reference certain non-GAAP financial measures. Although we believe these measures provide useful supplemental information about our financial performance, they are not recognized measures and do not have standardized meanings under U.S. generally accepted accounting principles or GAAP. Please see our public filings for additional information regarding our non-GAAP financial measures, including references to comparable GAAP measures. With that, I'd now like to turn the call over to Jay Jackson, Chief Executive Officer.

Thanks, Rob. And thank you to everyone joining us today for your interest in Abacus Global Management. And welcome to our fourth quarter 2024 earnings call. After Bill and I conclude our prepared remarks, we'll open it up to your questions. We close 2024 with another outstanding quarter of profitable growth and achieving significant milestones, capping off a record year for Abacus. In addition to our strong financial results, we effectively executed on a number of strategic initiatives that have meaningfully expanded our business. In 2024 alone, we strengthened our executive team through key hires, successfully raised substantial additional capital to fuel our growth initiatives, achieved capital self-sufficiency on our balance sheet, completed two strategic acquisitions that have significantly expanded our capabilities and market reach. and dramatically grew both the scope and scale of our operations across multiple business lines. First, in terms of our results, for the fourth quarter of 2024, we grew total revenue by 40% year-over-year to $33.2 million and recorded strong adjusted earnings, growing adjusted net income by 126%. to $13.4 million and adjusted EBITDA by 51% year over year to $16.6 million. Q4 was one of the many highlights in what proved to be an exceptional fiscal year 2024 for Abacus. For the full year, we increased total revenue by 69% to $111.9 million. grew adjusted net income by 58% year-over-year to $46.5 million, and adjusted EBITDA, 57% to $61.6 million. Additionally, we increased our policy originations by 63% to 1,034 in 2024 and deployed over $344 million in capital. Much of our growth was driven by our continued marketing efforts, successful capital deployment, increased assets under management, and our expanding institutional relationships. And we're well positioned for a strong 2025. We've initiated our full-year 2025 outlook for adjusted net income to be between $70 million and $78 million, which implies another strong year of growth between 51% to 68%. Bill will be along shortly to discuss our fourth quarter and full-year financial performance in further detail. The fourth quarter saw us make considerable progress in expanding our business operations meaningfully through thoughtful strategic investments, both organic and inorganic. During the quarter, we successfully completed the acquisitions of Carlyle Management Company SCA and FCF Advisors, asset managers, which together added approximately $2.6 billion in assets under management to our portfolio. These strategic acquisitions seamlessly integrate with our long-term vision of providing clients with holistic and tailored financial solutions. Carlyle significantly expands our international footprint and enhances our offerings to institutional investors seeking attractive, risk-adjusted returns with low correlation to other asset classes. Their track record as a fund manager within the life settlement industry is unmatched. Their investment portfolio is truly differentiated, and we could not be more thrilled to welcome Jose Garcia and the expert Carlyle team to the Abacus family. Meanwhile, FCF Advisors brings to Abacus innovative and specialized free cash flow focused ETF investment strategies. Their pioneering free cash flow quality model seeks free cash flow leaders in their industry while maintaining a high return on invested capital. This combination of free cash flow and ROIC allows our investors to capture the leading, most profitable companies in each category with one symbol. We rebranded the company to Abacus FCF Advisors, and in concert with the rebrand, we launched the new Abacus FCF Small Cap Leaders ETF, which carries the ticker ABLS. We also announced management fee reductions of 5 to 10 basis points across all of our ETFs, and an 18-month fee waiver of 20 basis points on four of the ETFs. We have already integrated Carlyle and FCF into our organization. It was the ideal time to rebrand our company to Abacus Global Management, which better reflects our evolution and global market presence. Our evolution to Abacus Global Management represents a significant milestone in our company's journey. to revolutionize financial services through expert asset management and by leveraging advanced technology to deliver personalized, lifespan-based financial solutions. As a result of these investments, we are thrilled to provide our expanded offerings and solutions to our clients through our four distinct, yet complementary business segments, which we will elaborate on further in the weeks and months ahead. Abacus Life Solutions provides premium liquidity solutions for life insurance assets, helping thousands of clients maximize the value of their life insurance assets. Abacus Asset Group serves institutional investors and select private clients with specialized uncorrelated and longevity-based assets and investment strategies. ABL Wealth redefines wealth management through our proprietary data and algorithms that create truly customized financial plans based on health longevity, and overall financial well-being. And ABL Tech leverages our decades of experience and proprietary data to revolutionize the life planning industry through innovative technology solutions serving pensions, insurance companies, and asset managers. We also took a number of key steps during 2024 in terms of enhancing our balance sheet. And as a result, our liquidity position has never been stronger. In addition to our strong free cash generating business, we successfully raised $181.7 million in additional equity in two oversubscribed offerings, including the Green Shoe, in order to fuel our growth initiatives. Then, in December, we further enhanced our capital structure by securing a new private $150 million debt financing facility with Segard and Varde Partners. two premier financial institutions, which ensures that we will continue growing our capabilities in 2025 and beyond without the need for additional equity raises. In 2024, we also added an additional 73 million of assets under management in our private placement LMA Income Fund 2, with more updates to come in our Q1 2025 call. Additionally, in an effort to further simplify our capital structure, Subsequent to year-end, we entered into private warrant exchange agreements, in which we exchanged just under 5 million public warrants for an aggregate of over 1.1 million shares of newly issued common stock, representing a ratio of 0.23 shares per warrant. Looking ahead, we're off to a great start in 2025, as we expect to once again grow our full-year adjusted net income by over 50%. And we're committed to maintaining our momentum to firmly solidify Abacus as a leader in the alternative asset manager space. Our expanding business verticals, proprietary technology, and wealth of data provides us with clear, competitive advantages to capture the vast opportunities before us. With that, I'll now hand it over to our CFO, Bill McCauley, to discuss the specifics of our fourth quarter and full year results.