Abacus Global Management - Earnings Call - Q1 2025

Transcript

Operator (participant)

Greetings and welcome to the Abacus Global Management First Quarter 2025 earnings call. At this time, all participants are in a listen only mode. A brief Question and Answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star and then zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Robert Phillips. Thank you. You may begin.

Robert Phillips (Senior VP of Investor Relations and Corporate Affairs)

Thank you, Operator, and thank you everyone for joining Abacus Global Management's First Quarter 2025 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 First Quarter 2025 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 8-K 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.

Jay Jackson (Chairman and CEO)

Thanks, Rob, and thank you to everyone joining us today for your interest in Abacus Global Management. Welcome to our First Quarter 2025 earnings call. After Bill and I conclude our prepared remarks, we'll open it up to your questions. We are pleased to kick off the new year with a record First Quarter of profitable growth while continuing to execute our strategic initiatives to scale and diversify our business. For the First Quarter of 2025, we more than doubled total revenue year-over-year to 44.1 million and recorded strong adjusted earnings, more than doubling adjusted net income to 17.3 million and adjusted EBITDA to 24.5 million year-over-year. Our strong performance was driven by robust demand for policyholder liquidity.

Our excellent First quarter performance positions us very well to achieve 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% and 68%. Bill will be along shortly to discuss our First quarter financial performance in further detail. While the macro environment remains uncertain in the near term, we strongly believe Abacus remains well-positioned to successfully navigate through any challenges posed by the current market volatility. Abacus's unique business model provides us with clear strategic advantages. During times of market volatility, policyholders and their financial advisors often look for different ways to access liquidity. Abacus specializes in helping clients unlock the value from their life insurance policies, driving more business opportunities. Market uncertainty also drives increased investor demand for uncorrelated alternative assets to diversify their portfolios from traditional market performance.

Abacus's specialized investment products continue to attract increased interest from registered investment advisors looking for differentiated yield products for their clients. Meanwhile, our expanded private fund offerings through our Longevity Funds have generated strong demand from advisors seeking alternative investment options. By serving both consumers seeking liquidity and investors pursuing uncorrelated assets, we have established a durable business model that we believe can succeed in any market cycle. Additionally, our balance sheet and liquidity position has never been stronger, with cash and cash equivalents of 43.8 million and balance sheet policy assets of 448.1 million as of March 31st, 2025. While we continue to monitor the macro-environment closely, we are poised to take advantage of any opportunities that may be caused by any market dislocations.

In the First Quarter, our asset management offerings continue to gain strong traction with new AUM inflows of 151 million due to our expanded offerings, geographic reach, and the growing institutional interest of private funds that are being stood up specifically to allocate to life insurance policies. Our expanded private fund offerings that launched in late February this year are off to a strong start, with approximately 123 million in new capital inflows in just the first month since launch. Further, our ETFs also saw a positive increase in asset flows in the First Quarter, with the Real Assets ETF increasing net new inflows by 44 million. As we highlighted on our prior call, we recently rebranded our company to Abacus Global Management to reflect our evolution and our expanded global market presence. The feedback we received and continue to receive has been extremely encouraging.

To that end, in the months ahead, you will see us expand our new brand recognition, including via the launch of a new ad campaign that will focus on all of Abacus Global Management distinct yet complementary business verticals, namely Abacus Life Solutions, which provides premium liquidity solutions for life insurance assets, helping thousands of clients maximize the value of their life insurance assets. Since 2004, Abacus has purchased over $10 billion in face value of life insurance policies. Abacus Asset Group, which serves institutional investors and select private clients with specialized uncorrelated and longevity-based assets and investment strategies, fixed income replacement strategies, and free cash flow-based investment solutions. The platform uses proprietary analytics to identify unique investment opportunities that deliver consistent results across market cycles while maintaining strict risk asset management.

Abacus Wealth Advisors, which redefines wealth management through our 20+ years of proprietary data and algorithms that create truly customized financial plans based on health, longevity, and overall financial well-being. ABL Tech, which leverages our decades of experience in proprietary data to revolutionize the life planning industry through innovative technology solutions serving pensions, insurance companies, and asset managers. The division has developed platforms that conduct real-time mortality verifications, locate missing participants, and service the secondary life insurance market with unprecedented speed and accuracy. Looking ahead, we are building on our momentum as our growing brand recognition is leading to greater policy originations, increased interest in our asset management offerings, and our expansion into wealth management. As a result, we remain well on track to achieve our full year financial targets.

We remain committed to executing our growth strategy to firmly solidify Abacus as a leader in the alternative asset manager and wealth management space. Our differentiated business model, along with our offerings of uncorrelated assets, positions us well to successfully navigate the current uncertain environment and come out even stronger than before. With that, I'll now hand it over to our CFO, Bill McCauley, to discuss the specifics of our first quarter results.

Bill McCauley (CFO)

Thanks, Jay. Hello, everyone. As Jay mentioned, we had another strong quarter of top-line growth and profitability. Total revenue in the first quarter 2025 more than doubled to 44.1 million compared to 21.5 million in the prior year period. Our revenue increase was primarily driven by greater life solutions, formerly active management and origination revenues, as well as significant contributions from asset management fees. The key driver of our life solutions performance continues to be our highly efficient origination platform, as capital deployed increased 128% to 124.9 million in Q1 2025 compared to 54.6 million in the prior year. With the growth in policy origination and capital deployment, as of March 31st, 2025, Abacus holds 753 insurance policies with a value of 448.1 million on the balance sheet.

We're very excited about the contributions from the asset management business, as this is the first full quarter of asset management fees from our acquisitions that closed in late 2024. Q1 2025 had 7.8 million in revenue in that business segment. Turning to expenses, total operating expenses, excluding unrealized and realized gains and losses on investments and the change in fair value of debt for the First quarter 2025, were approximately 19.6 million compared to 15 million in the prior year. The increase from the prior year period was primarily due to the incorporation of operating expenses of the companies that were acquired in Q4 2024, greater depreciation and amortization, and higher investments in SG&A and marketing to support our growth profile. The company typically realizes the benefit of marketing spend within 90 to 120 days.

On an adjusted basis, excluding non-cash stock compensation, business acquisition costs, amortization, and change in fair value of warrant liability, adjusted net income for the irst quarter of 2025 more than doubled to $17.3 million compared to 6.7 million in the prior year, which represents a 158% increase over the prior year. Adjusted EBITDA for the quarter also more than doubled to 24.5 million compared to 11.6 million in the prior year. Adjusted EBITDA margin was 55.6% for the quarter compared to 53.9% in the prior year. GAAP net income attributable to stockholders for the quarter was 4.6 million compared to a GAAP net loss of $1.3 million in the prior year, primarily driven by higher revenues, partially offset by increased operating costs from our acquisitions.

Now turning to our balance sheet metrics, for the First quarter 2025, annualized adjusted return on equity was 16%, and an annualized adjusted return on invested capital was 16.7%, both reflecting our highly profitable business model. As of March 31st, 2025, the company had cash and cash equivalents of 43.8 million, balance sheet policy assets of 448.1 million, and outstanding long-term debt of 238 million. As Jay mentioned in his remarks, despite current market volatility, we remain confident in our ability to achieve our full year 2025 outlook for adjusted net income to be between 70 million and 78 million. The range implies growth of between 51% to 68% compared to full year 2024 adjusted net income of 46.5 million.

In summary, we are off to a strong start to the year, and as we delivered record growth on our top line, as well as significantly growing profitability on an adjusted basis. We expect to maintain our momentum and execute our growth plans to capture the growth opportunities ahead of us. I will now turn it back to our CEO, Jay Jackson, for our closing comments.

Jay Jackson (Chairman and CEO)

Thanks, Bill. In conclusion, our record first quarter performance further validates our resilient and differentiated business model. We are well-positioned to successfully navigate the current uncertainty as we deliver on our unique value proposition to policyholders and investors seeking uncorrelated assets. We remain very excited about the vast market opportunity in front of us, and we're committed to building on our two-decade track record of financial success to deliver long-term profitable growth. Again, thank you all for joining us today, and we appreciate your interest in Abacus Global Management. With that, we look forward to your questions.

Operator (participant)

Thank you. We will now be conducting a Question and Answer session. If you'd like to ask a question, please press star and then one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star and then two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we pull for questions. The first question we have is from Patrick David of Autonomous Research. Please go ahead.

Patrick Davitt (Analyst)

Hey, good evening, everyone. Theoretically, there's an argument for policyholders to potentially be looking for more liquidity in uncertain times. I’d be curious to hear your thoughts on any noticeable uptick in inquiries since Liberation Day.

Jay Jackson (Chairman and CEO)

Hey, Patrick. You know, it's interesting. The answer is that yes, we have seen noticeable intake upticks related to interest. What's interesting is that how do we correlate that then with the amount of advertising that we're already doing? I think the way that we're starting to see that is that the advertising that we're doing is potentially having a larger impact with the potential, I would argue, uncertainty that's been developing in our markets post-Liberation Day. We have seen a positive impact from the position of inquiries, interest. As we've talked about in the past, the other side to this is that we've certainly seen a very significant interest from investors seeking a less correlated asset. These assets are traditionally, from an origination point of view, one of the few places that they can get these assets in.

In the launch of our funds, and we had added two additional follow-on offerings in mid-February or late February. In just that short amount of time, you saw in the release, we were able to raise from investors 123 million, which was certainly impressive from our perspective, considering that was even before Liberation Day. I think that just investors in general are certainly seeking this kind of uncorrelated yield that we've talked about in the past. In addition to that, we have seen certainly a rise in inquiries from policyholders who are interested in learning more about what the market value of their policy might be.

Patrick Davitt (Analyst)

Great. Thanks. As a follow-up, on the new repurchase authorization, how do you think about using that to take advantage of the low stock valuation versus not wanting the stock to be more illiquid?

Jay Jackson (Chairman and CEO)

Yeah. When we looked at that, it's from a repurchase option. Obviously, if you kind of look at the numbers and the way that we positioned it over an 18-month time period, it wasn't a significant amount of our very large amount of total dollars. What we were optically looking at was when we went to the board to have that discussion, that post kind of tariff conversations, the overall market had sold off quite significantly. The math that we looked at was, based on a valuation basis, was our stock significantly more discounted than what we felt like we had on ROE against policies that we were acquiring. When the math falls in the favor that the stock appears like it was at a higher discount than what we might receive on an ROE, it made sense to consider what that plan looked like.

I think that it was a very thoughtful decision on our end, and we think that it was successful and continues to be a successful plan. Now, as we're seeing some results and we continue to see the performance of the stock, certainly that math equation starts to flip. It always comes down to it has to be more accretive than the asset we're buying.

Patrick Davitt (Analyst)

Thank you.

Operator (participant)

The next question we have is from Crispin Love of Piper Sandler. Please go ahead.

Crispin Love (Director)

Thank you. Good afternoon, everyone. You deployed nearly 125 million in the First quarter, which I think has to be a record. Following the capital raise and debt raise late last year, would you consider Abacus to be fully deployed today? As you recycle capital, what do you think a run rate level could be for capital deployed in the coming quarters?

Jay Jackson (Chairman and CEO)

Sure. We've certainly built into this, and you're correct, this was a higher level of capital deployment, particularly in a Q1 than we had seen historically. A lot of that's driven to a couple of factors. Certainly, our origination efforts are certainly coming into play here where we're able to deploy capital in a very successful way. In addition to that, with the increased investor demand for the asset, what we're seeing is that we're also able to put those policies either back into market or into other investment products that then frees up more capital on the balance sheet to continue to purchase policies.

I think that we're very much in a very strong position here that as we look into 2025 and we think about how we either recycle capital or continue to add capital to the balance sheet, specifically through policy sales or any other activity that we may be able to take advantage of, we're just in a really good spot right now. I think that that trend will continue. When we looked at our guidance for this year, there's a reason why we didn't make any adjustments to it, just because I think we're well-positioned from a cash perspective. Yes, we put a lot of money to work in Q1, but we still have $43 million to $44 million of cash on the balance sheet to put to work.

Plus the success of the capital raise in the longevity funds for Q1 gives us a lot of flexibility and puts us in a really strong position for the rest of the year.

Crispin Love (Director)

Great. Thanks, Jay. And then just second question from me, can you share some of your latest thoughts on the carrier buyback program? Was it active in the First quarter? And then what are the opportunities for potentially new relationships through 2025?

Jay Jackson (Chairman and CEO)

Sure. Yes, we still saw activity in Q1. We noted some of that activity. That activity can be a little bit chunky in a sense of depending on the size of the transaction and kind of whether they're looking at a larger block or individuals. What we're seeing is that this is continuing to evolve in different types of structures and strategies. We're continuing to engage with and have conversations with both carriers and reinsurers where this is suitable for them. As this kind of concept continues to grow, we think as we look into 2025 that the carrier buyback program or the policy buyback program will only continue. The other way that we're looking at this as well is that there's also such investor demand for the asset.

To be quite frank, the carriers themselves are potentially having more competition for the asset than they've had in the past.

Crispin Love (Director)

Great. Thank you Jay. Appreciate you taking my questions.

Jay Jackson (Chairman and CEO)

Sure.

Operator (participant)

The next question we have is from Randy Benner of B. Riley. Please go ahead.

Randy Binner (Analyst)

Hey, good evening. Thanks. I guess I just have a couple of follow-ups to the prior questions. I guess just on your kind of carrier buyback, but more I think kind of a broader relationship with insurers and reinsurers, Jay, as you said. I think you said it was engaged in the quarter, but was that kind of a notable item in Life Solutions? Is there a way to kind of quantify that versus third parties?

Jay Jackson (Chairman and CEO)

Sure. The way that we look at the carrier program versus selling the policies outright is that from our perspective, it's important that obviously that area will continue to grow. Beyond that, we're looking at this from who can pay the most for the contract, right? In this example, we're looking at this and we're seeing pretty strong investor demand, and it's going to be a little more competitive process than it was in the past, whether it was a carrier or a reinsurer. That said, the growth potential and opportunity is significant and continues to grow as we continue conversations and add more relationships. The first part of your question was, I think, a little bit more about how are our relationships growing with carriers and how do they stand with carriers and reinsurers? We have multiple solutions for them.

It's not just the buyback. Some of the things that we're able to offer them is, for example, our mortality verification program, where we've built, I think, a very competitive program there. We're signing up, continue to sign up significant pension funds. You'll see in our public deck how that business, which will be out shortly, has continued to grow. We're adding reinsurers and carriers. What is really interesting is that even beyond the buyback, we're growing into a service provider for them. They're looking at us for other alternative asset solutions that they might be able to invest in. When we think about our ETF strategies and other things that we're doing, we're able to potentially source several types or several areas of revenue from the same carrier beyond just buyback.

I think that's what I'm really absolutely thrilled about, is that we are what I believe to be very good partners. Because of that partnership, it has evolved into other revenue opportunities.

Randy Binner (Analyst)

All right. That's very helpful. I appreciate that. Then I'll jump to maybe the smallest line item, but it's interesting. Technology solutions is its own line item in this new reporting. That's great. Can you give any update just on the number of clients you have there and kind of where that is in its life cycle?

Jay Jackson (Chairman and CEO)

Sure. The way that we tend to track this, and you'll see this in our deck as an ongoing KPI, is the number of lives, right? Because ultimately, this is a business that's charged per life. We are seeing that grow pretty significantly. The number of lives that we have is just under a million as it stands today. We have another 700,000+ in trial, which means that those are clients that we are in process of potentially bringing on. That business will continue to evolve and grow very, very quickly. I think that as you add larger clients, which we have done, you tend to catch by word of mouth through other opportunities with other large pension clients, reinsurers, and even carriers.

What I point out about that business, which also gets me very excited, it can also be an entry point to other revenue sources for us, meaning asset management. Now we're having asset management conversations with some of our mortality verification clients. That is why this is the first time that you're starting to see that breakout. Thank you for noticing it, where you'll see the ABL Tech or the ABL technologies separated from the asset management, separated from, of course, the active management. This is all in our overall goal to be able to show you how we're diversifying our revenue. We're growing substantially. We're meeting all of the targets that we've put out to do, and we'll continue that process.

Randy Binner (Analyst)

All right. Appreciate it. Thank you.

Jay Jackson (Chairman and CEO)

Sure. Thanks Randy.

Operator (participant)

The next question we have is from Andrew Kligerman of TD Securities. Please go ahead.

Andrew Kligerman (Managing Director)

Hey, thanks a lot. Good afternoon. I guess a few follow-ups as well. On the capital deployed for policy originations, 125.9 million, similar to the number last quarter. Jay, you kind of talked a bit in depth about it and seemed very excited. Should we see that start to come up, or do you kind of want to keep it level? How do we see that playing out for the next several quarters?

Jay Jackson (Chairman and CEO)

Sure. I mean, there's a couple of drivers, right? From a crystal ball basis, I'm not sure how that looks, right? What I can share with you is that I think that we're starting to find consistency within our balance sheet. And 125.9 million, in this case, kind of puts us at kind of how we're fully deployed, and then we're able to recycle that capital and continue from there. As policyholder demand continues, meaning that policyholders are still seeking more liquidity and we have more policies to purchase, which we think that we'll continue to see in 2025 and 2026, we expect growth there. When that happens, we're matching capital alongside that growth. That's where I think that the asset management has been really important, and that's why we broke it out for you.

As you see these numbers begin to increase, it's going to be demand-driven and also investor-driven. That's why I keep kind of bringing us back to this market that we're in today. I don't know of very many companies that are as well-positioned as Abacus is in 2025 for these potentially volatile markets that we're going to continue and certainly remain in for the remainder of the year.

Andrew Kligerman (Managing Director)

Got it. Maybe a little color on Carlyle since you've acquired it. How many months has it been on board now? How do you see assets growing within Carlyle over the next couple of years? What do you think the opportunity is there?

Jay Jackson (Chairman and CEO)

Sure. We obviously think the opportunity is significant, but for a number of reasons. We did close on that transaction in the First-week of December. Now we're through May, now we're approximately six months in. If we're talking about Q1, that would have been December, and then the First quarter of 2025 is what this reporting period is. Over that timeframe, we were quite pleased with a couple of things related to that acquisition. First is the integration. We have successfully begun to integrate what I think is pretty seamlessly a number of the synergies that we spoke about from servicing, the valuation, etc. We've seen that in now our First earnings with those funds included. Secondly, they've been incredibly active out having this conversation and raising capital globally.

The thing to remember, they're based in Luxembourg, but predominantly their assets are from investors all overseas. They've been traveling the world in several different locations from Asia and all over Europe telling this story, and they've begun to have, I think, some significant success. I'll add one additional piece to this. A number of their investors are also interested in the stock, right? Whereas before, they might have been limited to a single discussion just on to invest in the individual funds, and now they're saying, "Gosh, we should maybe even add to our position or add to a larger position in not just the investment within their funds, but also an investment in the stock." I think that is part of the compelling reasons why that asset manager, Carlyle specifically, is going to continue to have success.

As we continue to tell our story, this is a synergy business that not only do we have additional revenue sources, but on top of that, the story itself has become far more streamlined, and it has made it easier for investors to invest both in Abacus as well as in their funds.

Andrew Kligerman (Managing Director)

Got it. Jay, the stock, I mean, you've had a couple, you've been stringing together a bunch of very strong quarters, and the stock is not reacting as one would expect. Given that, do you get inquiries on M&A that companies might want to acquire you for the very reasons why these non-correlated assets are attractive to investors? Maybe just some thoughts on the stock performance because your operating performance warrants a lot more upside in the stock.

Jay Jackson (Chairman and CEO)

Thank you for saying that. We believe that as well, and we're going to continue to tell our story. That's what I believe is the secret to this. One of the things you heard that we announced in this call is that, one, the rebranding is working. As you began to tell that story and people gather a better understanding of what Abacus does on not just our Life Solutions division, but our asset management, our technology, and as we're taking a good look at what we can do in our upcoming Wealth division, as those segments of the business continue to grow and we continue to diversify that revenue, we believe that would be reflected in the stock price. Over time, we think that that's definitely going to occur.

I would say in the short term or in the near term, over the last, let's just say, 30 days, the stock's performed quite well against the Russell 2000, the S&P, and almost every index out there. I've actually been quite pleased the way that investors have viewed our company as the type of company that is well-positioned and performs well in this type of volatile environment. Where we sit today as a stock price, I agree with you. There's certainly a lot of room to go, and I think that that's going to be realized, right? What I know, and you've been in the market a long time, you start to string these quarters together, and ultimately what happens is that the market is incredibly efficient.

As we continue to tell our story with an efficient market over time, the stock, I think, will be potentially much more what you and I both agree would be fairly valued based upon the earnings and the company that we have. We will and will continue to do everything we can to tell this story and get this story out. The great news for us right now in these volatile markets, gosh, shareholders and investors are looking for stories like ours. We are going to get on the front of this, and we are going to start running advertisements in relationship to this, whether that's television, etc., really talking about a rebranding, and it's going to continue to have an impact. Thank you for that question.

Andrew Kligerman (Managing Director)

Yeah. So it sounds like then no urgency for any M&A. It sounds like you're going to continue to execute. Is that the right read?

Jay Jackson (Chairman and CEO)

I think that's the, yeah, it's our job to continue to execute. What I can't control is M&A and inquiries and those kinds of things. Who knows what that means, right? From our perspective, the best thing we can do for our shareholders is to continue to deliver quarters like we just did.

Andrew Kligerman (Managing Director)

Got it.

Jay Jackson (Chairman and CEO)

That's what matters, right? I think as we continue to execute, all the other things will take care of themselves. I believe that's going to happen in the near term. I think from our perspective, we're more interested in M&A on our end, meaning that are there opportunities we should be taking advantage of, right? We've got great earnings. One of the things I'm most proud of is that our EBITDA margin actually increased Q4 to Q1. We're up to 55% EBITDA margin. From that perspective, what are some great uses of the stock that we might have in our treasury as well as the cash we have on the balance sheet, assuming that they're very, very accretive? On the flip side, Andrew, I would say that we're looking at opportunities.

Andrew Kligerman (Managing Director)

Got it. One last one, just to kind of get a sense of your inbound policies that you're acquiring. Jay, could you give a sense of the mix? What % was direct-to-consumer versus advisors versus specialists?

Jay Jackson (Chairman and CEO)

Sure. We have seen this adjust quarter-to-quarter. It just depends. Historically, and kind of where we saw things in the First quarter, about 40% of our flow was indirect-to-consumer. Approximately 40% was from our financial advisor division, and about 20% was from what we call our brokerage division. That continues to stay fairly consistent. We will occasionally see, it depends on the quarter and the level of advertising we do, we will see that direct-to-consumer increase. Between financial advisors and brokers and indirect-to-consumers, ideally, that split is we will kind of see this 50/50 blend, and we are basically there.

Andrew Kligerman (Managing Director)

Perfect. Thanks a lot.

Jay Jackson (Chairman and CEO)

Awesome. Thank you Andrew.

Operator (participant)

Ladies and gentlemen, just another reminder, if you would like to ask a question, you may press star and then one. The next question we have is from Mike Grondahl of Northland Securities. Please go ahead.

Mike Grondahl (Senior Research Analyst)

Hey, guys. Thanks, and congrats on a nice start. My First question, on the AUM, you mentioned 123 million. Did that relate only to the private funds, and then you had an additional or incremental 44 million inflows on the ETF? Could you just clarify that? Did I hear that right?

Jay Jackson (Chairman and CEO)

Yes. The longevity funds of the private funds brought in new assets in Q1 of just under 123 million. I think it is 122.8 million. In the ETF strategies, the real asset strategy increased in AUM by about 44 million, which, if you consider the market conditions, I think some of that makes sense. The ETF strategies combined with what we did in the longevity fund assets, that totaled, I think we believe we have this in the release, is around 150 million.

Yeah. 160 million in net new flows in the list.

It's about 160 million in net new flows or just under. Part of that, when you look at the ETF, we know the real assets was up 44 million. There were a couple of the other funds that had some lighter redemptions, but it still left them positive net inflows for the quarter. When you look at total net inflows or total net inflows for the quarter, it was almost 160 million between all the assets.

Mike Grondahl (Senior Research Analyst)

Got it. Great. I see in the financials, the asset management revenue of 7.7 million in the First quarter. Did you guys disclose a consolidated AUM balance at March 31st? I did not see that, total AUM.

Jay Jackson (Chairman and CEO)

Yeah. That'll be in our financial supplement. That'll be put out here shortly.

Mike Grondahl (Senior Research Analyst)

Okay. Okay. In the supplement. Okay. And then is there any updated timeline on ABL Wealth, kind of the advisor strategy you're implementing there?

Jay Jackson (Chairman and CEO)

Mike, thanks for asking. We've actually just worked through a recent name change on that from ABL Wealth to Abacus Wealth Advisors. I think we put that in the press release, but it's now being titled Abacus Wealth Advisors. From an update perspective, we are still in process, I think, of some pretty interesting opportunities that we look forward to sharing with you as soon as those come to fruition. Our target for this year is to have that continue to grow and have some significant opportunities there come to realization, potentially Q3, Q4. As we come into 2026, our anticipation is that the financial advisor division will be a meaningful part of our revenue split.

Mike Grondahl (Senior Research Analyst)

Perfect. Perfect. Okay. Hey thanks guys.

Jay Jackson (Chairman and CEO)

You bet.

Operator (participant)

Thank you. At this stage, we have no further questions, and I would like to turn the floor back over to Jay Jackson for any closing remarks.

Jay Jackson (Chairman and CEO)

Thank you again to everyone for joining our call. We are absolutely thrilled after a very strong and historic First quarter for us. What I think that I feel even better about is that we're well-positioned for the remainder of 2025. We are remaining and keeping our guidance intact at $70 million to $78 million of adjusted net income, which is a 51% to 68% increase year-over- year. As we continue our process, Abacus Global Management is well-positioned as a company to continue this growth, and we look forward to speaking to you next quarter.

Operator (participant)

That concludes today's conference. Thank you for joining us. You may now disconnect your lines.