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Beneficient Company Group to Go Public Following Combination with SPAC
Thursday 22 September 2022

US-based special purpose acquisition company (SPAC) Avalon Acquisition Inc. (NASDAQ: AVAC) has entered into a merger agreement with alternative asset solutions provider The Beneficient company Group, L.P., providing liquidity, data, custody and trust services to holders of alternative assets, to list as a public company expected to list on NASDAQ, the company said.

The combination implies an enterprise valuation of USD 3.5bn, including approximately USD 200m in gross proceeds from Avalon's cash in trust assuming no redemptions.

Upon the closing of the transaction, and assuming no public stockholders redeem their shares, existing Beneficient shareholders are expected to continue owning 88% of the combined company, with public stockholders expected to own 10%, and Avalon sponsors expected to own 2%.

Beneficient's end-to-end digital platform provides financing for liquidity and related services to a growing number of investors who are seeking liquidity for their alternative assets through regulated fiduciaries.

The company's cybersecure-certified AltAccess portal is the first widely available venue for exchanging alternative assets from a balance sheet provider acting as a regulated fiduciary, is subject to regulatory oversight and is powered by over 800,000 lines of proprietary code.

Beneficient has a growing network of wealth management partners, including broker dealers, RIAs and private banking platforms, and general partners.

Lazard served as sole financial advisor to Beneficient and Haynes and Boone, LLP acted as legal advisor. Houlihan Capital provided a fairness opinion to Avalon acquisition Inc. and Venable LLP acted as legal advisor.

Beneficient is focussed on helping foster economic development in its local communities. Beneficient's transactions have resulted in contributions of cash and assets with a value of more than USD 15m in the aggregate to the Kansas Department of Commerce, the city of Hesston, the Kansas Economic Growth Trust and the Beneficient Heartland Foundation, each of which is dedicated to rural economic development in Kansas.

Avalon acquisition Inc. is a blank check company whose business purpose is to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganisation or similar business combination with one or more businesses.
Date Published: 22/09/2022