SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2024

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

The Company evaluated subsequent events and transactions from the consolidated balance sheet date through the date at which the consolidated financial statements were issued. Based upon the review, management did not identify any subsequent events that would have required adjustment or disclosure in the financial statements other than what is disclosed below.

Planned acquisitions

On July 18, 2024, the Company entered into a share purchase agreement to acquire Carlisle Management Company SCA (“Carlisle”), a leading Luxembourg-based investment manager in the life settlement space, for approximately $200 million. Carlisle shareholders will receive consideration in the form of the Company’s common stock and the Company’s Fixed Rate Senior Unsecured Notes due in 2028 representing approximately 62.3% and 37.7% of the purchase price, respectively, which is subject to closing adjustments and certain performance thresholds. This transaction is subject to regulatory approval.

On August 7, 2024, the Company entered into a definitive agreement to acquire FCF Advisors (“FCF”), a New York based asset manager and index provider specializing in free cash flow-focused investment

strategies. FCF sellers will receive consideration split between cash and the Company’s common stock, which is subject to closing adjustments and approvals.

Repayment of long-term debt, at fair value

The investors in the LMATT Growth and Income 1.2026 note agreed to wind down this structured note earlier than originally planned on June 30, 2024. The prior end date would have been July 31, 2026. In anticipation of this new end date, the Company closed its option positions of $110,582 on June 28, 2024 (the last trading day in June). The realized gain on the option of $47,566 was recorded as realized gain on investments line item on the consolidated statements of operations and comprehensive (loss) income. At this new end date, the structured note was valued at its cap of 40% total return based on the original principal committed. The parent Company, LMA, made a $54,000 capital contribution to help cover this investor obligation. During the first week of July 2024, this debt of $784,795 was extinguished.

The investors in the LMATT Growth 2.2024 note agreed to wind down this structured note one month earlier than originally planned on June 30, 2024. In anticipation of this new end date, the Company sold its insurance policies and closed its option positions of $1,296,266 on June 28, 2024 (the last trading day in June). The realized gain on the option of $809,178 was recorded as realized gain on investments line item on the consolidated statements of operations and comprehensive (loss) income. The Company itself had ample assets to cover investor obligations. During the first week of July 2024, this debt of $4,610,009 was extinguished.

Repayment of long-term debt, related party

The Company paid off the SPV Purchase and Sale Note on July 2, 2024 before its scheduled maturity on July 5, 2026 with proceeds received from June’s common stock sale to reduce the Company’s interest costs. On July 2, 2024, the balance of $28,170,326 and additional interest of $18,780 was paid in full.