Financial services firm The Beneficient Co Group, L.P. has agreed to go public through a merger with a blank-check vehicle in a deal valuing it at about $3.5bn
Beneficient provides liquidity and services to qualified individuals and smaller institutions invested in private equity, venture capital and other alternative assets.
The company has disclosed providing investors $1.1bn in liquidity, including nearly $400m over the past year.
The merger comes at a challenging time for the special purpose acquisition company (SPAC) market as several returned the money they raised after failing to find suitable targets.
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Beneficient is operating profitably but many SPAC transactions involve companies that are not yet profitable.
The deal with Avalon Acquisition Corp can fetch approximately $200m in gross proceeds for Beneficient following previous private capital raises.
Beneficient says access to public markets will help finance more liquidity transactions in the roughly $12 trillion alternatives sector.
“We are working to democratise the industry starting with a simple, secure, rapid and cost-effective solution to what we saw as investors’ most foundational and pressing need: liquidity,” Beneficient CEO Brad Heppner said in a statement.
Source: U.S. News
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