GWG Holdings, Inc. (NASDAQ:GWGH) Q3 2019 Earnings Conference Call - Final Transcript

Nov 21, 2019 • 04:30 pm ET


GWG Holdings, Inc. (NASDAQ:GWGH) Q3 2019 Earnings Conference Call - Final Transcript


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Dan Callahan

Hello, everyone. Thank you, and good afternoon. My name is Dan Callahan, Director of Communication at GWG Holdings. Welcome to our Third Quarter 2019 Earnings Webcast. On the webcast with me today are Murray Holland, our President and Chief Executive Officer; and Tim Evans, our Chief Financial Officer. Following our remarks, we'll be happy to take some questions. You can submit them online through the webcast dashboard, look for the question text box, type your question in, again, we'll be taking questions at the end of the presentation.

Some statements made on the webcast today along with any projected financial results including forward-looking statements are subject to certain risks and uncertainties. Any forward-looking statements made on this webcast are made based on assumptions as of today, and we undertake no obligation to update these statements as a result of new information or future events. A sample list of factors and risks that could cause actual results to be materially different from forward-looking statements can be found in our earnings release and in our most recent 10-K and 10-Q reports.

Please note that everyone, but the participants are in a listen-only mode. Again, questions can be submitted through the dashboard text box, it will be answered at the end of the presentation. Today's webcast is being recorded and will be available on the website at through the Investor Relations tab.

So with that, I'll turn it over to our President and Chief Executive Officer, Murray Holland. Murray?

Murray T. Holland

Dan, thank you very much, and welcome everybody. Today, I'd like to go over a number of items with you that involve the third quarter of 2019, including our business overview, the investment in Beneficient, various corporate events updates, financial metrics and results, and our path forward. The business of GWG is to provide liquidity for alternative assets owned by individuals who need liquidity for life events and investments. These -- traditionally, GWG business has been purchasing life settlements out from individuals who need liquidity and we have furthered our strategy of diversification into these alternative assets by our investment in Beneficent. Today, we have a diversified portfolio of investments. About 52% of our investments are life insurance assets, 42% are investments in Beneficient, and we still retain about 5.5% of cash, for total consolidated assets of $1.5 billion, with shareholders equity of just over $200 million.

The Beneficient asset investment strategy provides a significant diversification of investments for GWG. Beneficient strategy is to invest in professionally managed funds, including private equity, credit funds, real estate funds, other alternatives such as hedge funds and that provides -- our investment in Beneficient provides GWG this diversification as direct exposure into these assets.

A breakdown of global alternative assets in the class of investments that BEN will participate in are contained in the pie chart that's on the screen. The largest portions are hedge funds and private equity funds, real estate investments, private credit, infrastructure and natural resources. And again, these professionally managed funds are the