Abacus Life, Inc. agreed to buy a 51% stake in Manning & Napier to transform into a broad financial services firm. The Orlando-based company announced the deal to combine its life insurance asset business with a traditional investment firm managing $18 billion. Abacus Life will acquire a 51% stake in Manning & Napier by late 2024 to merge life settlement expertise with traditional asset management for global investors.
Abacus Life secures majority control of Manning & Napier
Abacus Life (NASDAQ: ABL) signed a definitive agreement to purchase a controlling interest in Manning & Napier from Callodine Group. Jay Jackson, CEO of Abacus Life, stated the move creates a global alternative asset manager. Manning & Napier currently manages roughly $18 billion in assets for its clients.
The deal allows Abacus to use Manning & Napier’s existing distribution network to sell its life settlement products. Abacus specializes in buying life insurance policies from individuals for an immediate cash payment. They then hold these policies as investments until the death benefit is paid out.
Manning & Napier will continue to operate from its headquarters in Fairport, New York. The firm has provided wealth management and investment services for over 50 years. This acquisition brings a steady stream of management fees to Abacus, which previously relied on the more volatile life settlement market.
From life insurance policies to $18 billion in managed assets
Abacus Life went public in 2023 and has quickly sought ways to expand its footprint in the financial sector. Before this deal, the company focused almost entirely on the life settlement industry. This niche market involves purchasing insurance policies from seniors who no longer want or need their coverage.
Manning & Napier was a public company until 2022, when Callodine Group took it private in a deal valued at $241 million. By selling a majority stake to Abacus, Callodine remains a partner while allowing Manning & Napier to join a larger public platform. This historical shift marks the first time a major life settlement firm has bought a traditional equity and bond manager.
Why retail and institutional investors see a new asset class
This acquisition matters because it gives everyday investors easier access to life settlements, which usually only large hedge funds buy. These assets do not move in sync with the stock market. When stocks fall, the value of a life insurance policy remains tied to the health and age of the insured person, not interest rates.
Pension funds and insurance companies often look for these "uncorrelated" assets to protect their portfolios. By owning Manning & Napier, Abacus can now offer these specialized insurance investments alongside traditional stocks and bonds. This creates a one-stop shop for institutional clients looking to spread their risk across different types of holdings.
Leadership stays as Manning & Napier joins the Abacus platform
The day-to-day operations for Manning & Napier clients will see few immediate changes. Marc Mayer will remain the Chairman and CEO of the firm, and the existing investment teams will stay in place. The company will keep its brand name, which has high recognition in the Northeast United States.
Abacus plans to introduce several new changes to the business model over the next year:
- New investment vehicles that combine life settlements with traditional fixed-income products
- Expanded technology tools for Manning & Napier financial advisors to evaluate insurance policies
- Increased marketing budgets to grow the firm’s $18 billion asset base
Regulatory hurdles and market shifts face the new partnership
The deal faces risks related to the complex rules governing both the insurance and investment industries. Regulators must approve the change in ownership to ensure client funds remain protected. Any delay in these approvals could push the closing date further into 2025.
There is also the risk of cultural friction between a fast-growing insurance firm and a legacy wealth manager. If key portfolio managers at Manning & Napier leave because of the ownership change, the firm could lose clients. Abacus must prove it can manage a traditional investment business without distracting from its core insurance operations.
Closing dates and regulatory filings for the 51% stake
The companies expect to finalize the transaction in the second half of 2024. This timeline depends on approvals from the Financial Industry Regulatory Authority (FINRA) and other state-level regulators. Abacus Life has already filed the necessary documents with the Securities and Exchange Commission.
Following the close, Abacus will report Manning & Napier’s financial results as part of its own quarterly earnings. Investors are watching for the final purchase price, which the companies have not yet fully disclosed. The board of directors for both firms have already voted in favor of the agreement.
Key Numbers and Facts
The confirmed figures behind this story at a glance.
Key Fact Detail Main person or organisationAbacus Life, Inc. and Manning & Napier Main action or decisionAcquisition of 51% controlling stake Date or periodAnnounced March 2024 LocationOrlando, FL and Fairport, NY Amount, figure, or scale$18 Billion in Assets Under Management Previous statusManning & Napier owned by Callodine Group Current statusDefinitive agreement signed Primary effectDiversification into traditional asset management Next confirmed stepRegulatory approval and closing in late 2024A new model for alternative and traditional asset management
The merger of Abacus Life and Manning & Napier suggests that the wall between "alternative" and "traditional" investments is crumbling. By owning both the insurance policies and the firm that manages the money, Abacus controls the entire value chain of the investment. This deal sets a precedent for other niche firms to buy established wealth managers to gain instant scale and credibility. The success of this partnership will likely determine if other insurance-based firms follow this path to diversify their income.
Frequently Asked Questions
Who is buying Manning & Napier?
Abacus Life, Inc. is buying a 51% controlling stake in the firm. They are purchasing this majority interest from the Callodine Group, which took Manning & Napier private in 2022. Abacus is a public company traded on the NASDAQ under the ticker symbol ABL.
Will Manning & Napier change its name after the deal?
No, the firm will continue to operate under the Manning & Napier brand. Abacus Life confirmed that the existing leadership team, including CEO Marc Mayer, will stay in their current roles. The company will maintain its headquarters in Fairport, New York, and continue serving its current clients.
What are life settlements and why does Abacus buy them?
Life settlements are life insurance policies sold by the original owner to a third party for a lump sum of cash. Abacus buys these policies because they offer a predictable payout that does not depend on stock market performance. This acquisition allows them to offer these unique insurance-linked investments to a wider group of people through Manning & Napier.
