After transferring its listing to the NYSE from NASDAQ and entering a partnership with Dynasty Financial Partners in August, Abacus Global Management is facing new expectations from institutional investors. 

Jay Jackson, CEO and chairman of Abacus, outlined how the firm is adapting to that shift. Jackson discussed the operational, governance, and communication priorities management is emphasizing as the firm works to build deeper credibility with shareholders, sharpen its long-term narrative, and position the platform for sustained growth in the public markets. 

The following responses have been edited for clarity and conciseness. 

CM: What does Abacus’ deal with Dynasty Financial mean for the firm, and does this mark Abacus’ entry into the wealth management space? 

It’s certainly a starting point. What made Dynasty appealing to [Abacus] was the kind of breadth of RIAs that they were working with. But predominantly, high-net-worth and ultra-high-net-worth RIAs that had transitioned from traditional brokerage firms to go independent. 

It made a lot of sense to us, because I think RIAs and independents in general are probably leading the charge when it comes to allocating to Alts. And from our perspective, it was the first step into how we can better work more closely with RIAs. 

CM: What does Abacus’s $20 million share repurchase payback program mean for the firm’s longevity and for investors at large? 

This program was on top of a $10 million buyback, which was announced following our Q3 earnings, and we also announced a dividend payout. Being able to capitalize back to shareholders, through the dividend and share repurchase programs, we continue to have a lot of confidence and belief in the success of our business and our growth.  

CM: Recently, Abacus launched on the New York Stock Exchange from NASDAQ. What are your thoughts on the IPO market for the wealth and asset management sectors? Could the IPO market see some pain points? 

We went public in July of 2023, and we thought that the opportunity at the New York Stock Exchange was more valuable — we grew as a business. In our first two-and-a-half years before we changed to NYSE, is that the spread on NASDAQ was much wider.  

I think it’s a small-cap stock that might be a little less traded, and that can create an optic of volatility within your underlying stock. 

The health of the IPO market is driven by capital. That is ultimately what we’re looking at, and I think companies that have either recurring revenue or a history of growth and revenue and profitability — it’s a great IPO market. 
For businesses that are selling more of a concept or an idea of where they hope to make money, they have more challenges. 

CM: Has Abacus incorporated AI models into its offerings? And has there been any specific feedback from clients regarding how AI is used to manage their portfolios? 

We are not using AI to manage portfolios. We are using AI to help us better understand and aggregate data. We have a client interface where we’re engaging with policyholders and direct consumers, and we’re aggregating their health and medical profiles. 

We’re using AI in large language models to aggregate that information into summaries to help us better underwrite what that individual is. What does that mean? Ultimately, the consumer is going to receive a broader set of data in a summary that they can use. 

AI allows us to do verifications much quicker, source broader pieces of data, so that we can put it into a usable format. 

CM: Abacus released a letter to shareholders in January, stating that Abacus aims to be the “servicer of securitized assets.” What are some risks investors may have about the securitized assets market? 

It’s a very broad market, and as people think about securitizing underlying assets over time, it is about what type of assets are sitting inside that securitization. In our case, this underlying asset is a very consistent asset. The asset is a life insurance policy that’s issued by a rated carrier that is cash reserved and that has a default ratio of nearly zero.  

The underlying asset is a very strong asset that institutions would like to own, and the yield itself is uncorrelated — it’s effectively mortality-driven because it’s an insurance policy versus a private credit, which is debt-driven.  

When we launched the securitization, it was just a matter of education and getting institutions, rating agencies, and structures comfortable with understanding what the asset was. 

CM: Over the past couple of years, investors have been critical of Abacus’s role in the asset management industry. Does the firm have a game plan for how it plans to regain investors’ confidence in the company’s outlook? 

If you look at the performance of the underlying company through Q3, we have beaten earnings expectations every quarter since we’ve been public. I think the real issue is about conveying that message to shareholders and potential shareholders of the underlying stock.  

As people start to understand the business better and all the things we do, we are a data-driven presence. It’s using [data] in life insurance and asset management, and soon-to-be wealth management. 

It’s a matter of connecting the education piece to the underlying shareholders and using technology and asset management, which are some things we are looking forward to in the next 2-3 years.