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Abacus Global Management Named Top Financial Services Pick by B. Riley on Growth Prospects
Summary
B. Riley Securities initiated coverage on alternative asset manager Abacus Global Management with a Buy rating, citing rising assets under management and expansion into new business lines as key growth drivers.
B. Riley Securities has designated Abacus Global Management Inc. as its top investment opportunity within the financial services sector, initiating coverage with a Buy rating and a $16 price target. The brokerage highlighted the alternative asset manager's strategic expansion and potential for increased recurring revenue as key factors behind its bullish outlook.
Analyst's Rationale
According to B. Riley, Abacus has significantly strengthened its business model over the past year. The firm, which specializes in life insurance as an alternative asset class for institutional and private wealth clients, has benefited from several key initiatives.
These include the expansion of its Abacus asset group, the securitization of acquired policies into income-generating funds, and the creation of a private wealth management platform. These moves are seen as enhancing the company's revenue streams and market position.
Strong Asset Growth and Investor Demand
Abacus has demonstrated robust growth in its assets under management (AUM). B. Riley noted several key performance indicators supporting its thesis:
Ad- Fee-paying AUM reached $3.28 billion in the first quarter of 2026, a 21% increase from the end of 2024.
- The company raised $378 million in Q1 2026 across its longevity funds and exchange-traded funds.
- Abacus is targeting more than $5 billion in AUM by the end of 2026.
Investor confidence appears strong, as evidenced by the LMA Income Fund II, which returned 100% of capital to its investors. B. Riley also reported that approximately two-thirds of those investors chose to recommit their capital, signaling sustained demand.
Future Catalysts to Watch
B. Riley identified several potential catalysts that could drive further growth for Abacus. A second securitization, anticipated for late in the second or third quarter, is expected to broaden the company's distribution channels. The planned launch of an interval fund is also projected to support asset growth.
The brokerage stated it will continue to monitor the closing of this second securitization, as well as any potential merger and acquisition opportunities, as further drivers for the company's stock.
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