DALLAS – Beneficient (NASDAQ: BENF), a provider of liquidity solutions for alternative assets, announced that it will fund liquidity transactions for three funds managed by ff Venture Capital. Upon completion, this could potentially increase Beneficient’s loan portfolio collateral to $121.5 million, subject to full participation by the limited partners involved.
The transactions include the opportunity for limited partners to exchange their interests in the funds’ alternative assets for shares of Resetable Convertible Preferred Stock valued at up to $62 million.
These preferred shares are convertible into shares of the company’s Class A common stock, accompanied by potential payouts over a ten-year period. Closing of these transactions, expected in the third quarter of 2024, is subject to shareholder approval and satisfaction of other closing conditions.
If all limited partners agree to participate, Beneficient will complete liquidity transactions (NAV) of more than $1.1 billion with the general partners through fund restructuring and continuation arrangements. ff Venture Capital will continue to manage the alternative assets acquired by the special purpose vehicles created for this transaction.
Brad Heppner, Beneficient’s CEO and founder, emphasized the deal’s role in providing new liquidity opportunities for high-value alternative assets and allowing 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 his limited partners.
Beneficient’s goal is to democratize alternative asset investing by offering liquidity solutions to middle- and high-income individuals and smaller institutions. Its technology platform includes the AltQuote™ tool and AltAccess® portal, which provide early exit capabilities, custodial services and investment decision analytics.
The preferred shares being issued have not been registered under the Securities Act of 1933 and may not be sold in the United States absent registration or an exemption from registration requirements. This press release is based on a press statement and does not constitute an offer to sell or buy any securities.
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