Beneficient (NASDAQ: BENF) stock jumped 8% on Thursday post-announcement of a new liquidity transaction with ff Venture Capital.
Beneficient (BENF) has revealed its plans to finance liquidity transactions for three funds under the management of ff Venture Capital. This move, once finalized, has the potential to bolster the collateral for Beneficient’s loan portfolio by an estimated $121.5 million, contingent upon full participation from the involved limited partners.
The transactions in question offer limited partners the opportunity to swap their interests in the funds’ alternative assets for up to roughly $62 million in Beneficient’s Resettable Convertible Preferred Stock.
The partners can convert this Preferred Stock into its Class A common stock alongside potential earnout payments over ten years. The closing of these transactions, slated for the third quarter of 2024, is contingent upon obtaining shareholder approval and meeting other closing prerequisites.
Beneficient, with the unanimous agreement of all limited partners, is poised to achieve over $1.1 billion in Net Asset Value (NAV) through liquidity transactions with general partners via fund restructurings and continuation vehicles. ff Venture Capital will remain responsible for managing the alternative assets acquired by the special-purpose continuation vehicles created for this transaction.
Brad Heppner, the CEO and founder of Beneficient, underscored the transaction’s significance in opening up new liquidity avenues for valuable alternative assets while allowing general partners to retain some upside potential for their limited partners.
John Frankel, Founding Partner of ff Venture Capital, conveyed his contentment in delivering this innovative liquidity solution to their limited partners.
Beneficient (NASDAQ: BENF) Stock Movement
BENF stock surged 7.80% to close at $0.11 on Thursday. The traders had exchanged hands with 61,169,866 (61.16 million) shares compared to the average daily trading volume of 1.18 million.
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