Thank you, everybody, for coming. Rob Phillips, I joined Abacus Life on October 1st as SVP of Investor Relations and Corporate Affairs. Prior to that, I was with Nasdaq for 13 years, working with listed companies, including Abacus Life. So, very fortunately, got brought aboard by one of the clients as well. So, thrilled to be here. One of the questions I've been getting asked in my one-on-ones is, what made me join Abacus Life? And what does Abacus Life do? So, oh, sorry, lawyers say hello. By the way, this was one of the things that had grabbed me. It's two things.
If you're doing a screen for a public company with mid-teen, top and bottom line growth, that's smaller cap, call it $500 million-$2.5 billion, financial sector, and that has 18% ROE and 50% adjusted EBITDA, that'll get you to the one company, and that's Abacus Life. So, that had grabbed me. And the time that I had spent working for Nasdaq had seen a lot of SPACs since 2021. Abacus went public in July of 2023 by SPAC. Excuse me, the wrong way. Here we go. And this is one that is not one of the SPAC stories. So, a fascinating business. Then I'll do a quick background on myself. Spent 13 years at Nasdaq. Prior to that, had worked in an alternative strategy asset manager for about five years.
Traded bonds for 10 years before that, and then way back in the day, actually worked on the floor of the New York Stock Exchange. For the asset manager that I had worked with, by the way, this was at the time purportedly an uncorrelated strategy or asset class. In fact, in 2008, 2009, 2010, as we all know, all correlation went to one. When I was working directly with Abacus, looking at what they had going on and the underlying asset that we're talking about, this is a fascinating, truly uncorrelated asset that can be a little bit morbid. We're looking at it in a very dispassionate kind of way. What is a life settlement? Is there anybody out here who's worked with life settlements before? So, here's the basis. Life insurance in the United States.
There's a Supreme Court case from 2000, sorry, 1911, that defines a life insurance policy here in the United States as an asset. And because it's an asset, it's the property of the insured individual. In any other jurisdiction, life insurance is a contract between the individual insured and the underwriter. Because it's an asset here, or as my Canadian wife likes to say, everything in America is a business and can be turned into one, life insurance policies can be sold. That was the nature of the decision, Grigsby versus Russell in 1911. And that was the origin of what we call the life settlements business. What is a life settlement? It is the sale of a personal life insurance policy for an amount less than the face value, that is the death benefit, but more than the surrender value.
So, imagine, like our CEO, Jay Jackson, says that in your house, which is typically our largest asset, can only be sold back to the party that sold it to you, and that they can define the price. Life settlements is a growing asset class that's truly uncorrelated, and Abacus Life has spent the last 30 years developing our expertise in this kind of space. I think there's a pointer here. So, it's about typically the policy owner and the life insurance company are the counterparties for this as well. With the life settlement and Abacus Life, we're in the process, or our process is to obtain the life insurance settlements or policies from individuals and individual insured, and then we don't hold those assets. We're, for the most part, placing those with investors. So, where we're seeing the opportunity in this space is twofold.
First of all, more and more individuals are approaching us with an interest for surrendering their life insurance policies for the current cash value, and what we're seeing is a growing institutional interest for allocation to that asset class. What we do is we step in the middle of that, but also we originate. In order for life insurance policies to be surrendered, they can only be surrendered to a licensed life settlements provider, of which Abacus is the largest one, and we're the only public one as well. I've been asked questions about, is it possible that the institutional investors could just go directly to the policy owners? They could, but you have to get licensed in each state in which you're doing business.
And if the asset class is that compelling with those return characteristics, which we're going to get to, then the value in them is obtaining the policies versus obtaining the licenses to do so. And that's where we come in. As a matter of fact, what we're seeing is if there's more institutional growing institutional investment or investment in this space, then the policies that we're holding have more of a bidding interest. We have a portfolio that we turn over roughly every 116 days. So, back to going public as well. Abacus went public in July of 2023 by SPAC. I've been asked, why SPAC? Frankly, what I've been doing here and what our CEO's been doing since day one is we're explaining our value proposition by explaining the whole life settlements market. The SPAC was an opportunity to get public quickly.
And we also took in an investor with East Asset Management, the Pegula family. They're still 15% owner, so they have stayed with us. And the principals know this space and have a deep affinity for it. So, it's been a very good partner for us. The other thing we did was in July of 2024, we did an $11 million share offering as well. We consider that to be our IPO as well. And that brought in a cadre of good investors. We have just filed last week an S-3 shelf registration. So, there's not a lot I can talk about, but there are questions, of course, out there about what we're going to do to tap the markets. Our answer to that is we're evaluating all opportunities, hence the shelf. And what do we do with the capital we raise?
Every dollar that we take in, we're going to be buying another life insurance policy with it. What we're seeing, again, is a growing interest in the business. We are, though, balance sheet constrained. We're using our balance sheet. We have very limited debt as well, and if we're seeing more opportunities and more policies than we can bid on, then we're actually able to do so. What we need to do is place the assets and then go back into the market and do this. The other thing to point out, and I can go. I jump around with presentations, so please jump in with any questions. The process of obtaining a policy is a highly individualized one.
So, the underwriting, as we call it, involves us having owners of life insurance policies brought to us, and then we're engaging with them in a very detailed and disciplined process where we get a sense of what the longevity is. Getting back to the morbid for a second. What does it take? What interests us when it comes to a life insurance policy that we may want to acquire? It's what the market's interested in. Our typical life insurance insured is older. They tend to be wealthier. Reason for that is most at this point of our leads are being brought to us by financial planners. So, as they're engaging with their clients and they're looking at their overall portfolios, the older you get, these are individuals who might have taken out a policy 20 years ago.
And the reason they took it down, basically to replace future earnings, if and when, that's been settled and that's been taken care of. From the individual and from the wealth manager's standpoint, we are talking about replacing with roughly 20% across the board of the face value of this. And those are assets that can then be deployed into the portfolio or into the legacy as well. In terms of duration, we have right now 12,000 leads that are coming into us. And they're coming in in a whole variety of ways. Now I'm really going to start jumping around. And some folks have been asking me, by the way, how do I know Abacus? You might see our CEO, Jay Jackson's commercials on CNBC or Fox Business. You know, hey, it's Jay Jackson.
Did you know that your life insurance policy is your asset and that it's surrenderable for the cash value? If so, we'd love to talk with you. Give us a call at Abacus Life. That's generating for us 12,000 leads a month. It's opening up the more direct access to the insured, not going through the intermediaries as well. We're kicking out 10,000 of those leads every month. Why? Because they're too young, they're too healthy, and we think they're going to outlive their policies. In terms of policies of the overall opportunity set as well, there's $13 trillion face amount of life insurance policies in effect. Again, in the U.S., because this is the one jurisdiction where they're an asset, 90% of life insurance policies never pay out.
It was one of the investors or one of the counterparts out there [who] put it, the actuaries are getting it right from that standpoint. That leaves about 10% of policies that do. Of that, roughly $233 billion of what we would consider the characteristics that would be viable for life settlement right now. Of that, only about 10% has been tendered. We're seeing what we're just scratching the surface of this as well. What we have is a growing interest in a truly uncorrelated asset class. And the interest coming at us in both ways that takes that is what we consider wind in our sails is individuals surrendering while the institutions have a greater interest in it. Spend a little time, by the way, with life settlements and a quick overview. That's the opportunity set that I was talking about.
You have $13 trillion out there and about $233 billion in the overall that we would consider biddable and roughly $4 billion a year in face value is coming in for that. That's where Abacus Life comes in, what we consider to be our edge. By the way, people are asking where the opportunity is. Frankly, it's everywhere we look. Having come from exchange space as I do, the way I think about this is, again, Abacus is an exchange because we're not sitting on these assets. We're capturing the spread between originating the life settlements and placing them. That means that we add value at just about every counterparty that we're touching. We're adding value to the institutional investor because we're sourcing this as a policy.
Adding value to anybody who's interested in surrendering a life insurance policy for an amount greater than the cash value that they've put in. Another interesting growing vertical or destination, rather, for us are the underwriters themselves. So, there are underwriters and there were times that they had written some policies that were more aggressive that are sitting on their books. They require larger cash reserves. We know what the characteristics of those are. And if we obtain some of those policies, well, we do, when we obtain some of those policies, the first and natural buyer for those are the underwriters themselves. They can take the policy in, they can release the reserve, and we've added value at every part of that value chain as well. Why don't the insurance companies go directly to the consumers? The answer is, regulatorily speaking, they can't.
They've already declared what the value is for these whole or universal policies. The surrender has not been to them. So, the option is the secondary market, which Abacus has spent 30 years building. That adds wind to our sales. Our Q2 numbers, they reflected that actually. So, that $29 million top line number from Q2 reflected that there was a portion of our portfolio that had been placed in that way. That's a little more of a premium than we tend to see. Another characteristic about this is an asset class at any end of it. It's lumpy because if you think about, yes, it's uncorrelated and yes, from the layering standpoint of the institutional asset managers who are allocating in this space, they're layering in with the expected mortality is. However, there's just no way of predicting.
Same thing, by the way, in the origination end from our standpoint is we know what our pipeline looks like. We're very optimistic about it, but each policy surrendered is very much an individual process. There's also 50 different states that regulate what must be disclosed in the process as well. We're licensed in 49 of those, and you think you're going to get some policies in, we don't always. We know it's going to come in, but it doesn't necessarily hit in a certain quarter. We pre-release some numbers in addition to announcing the S-3 filing as well. The expected range. We're covered by now four analysts. We just picked up Northland this week with the three analysts out there who were still getting their arms around this business as well. What we're showing overall is growth. We're also showing two things as well.
So, let me just go back and forth here because I get questions about growth. Revenue range, by the way, as well, but in terms of the EBITDA margin, what we're seeing is that it's actually holding or going up. Why is that? Back to the commercials that I just showed you. So, those commercials are generating more of the policies that we're sourcing, which means that we don't have to compensate the wealth manager who's bringing it to us as well. Also want to just talk a little bit about growth as where we see it. Back to the 12,000 leads that we're getting and what drives our CEO to distraction. 10 of the 12,000 leads, that's the end of the conversation.
If you think about the history of our company, before going public, if you didn't have a life settlement or didn't have a client with a life settlement interest, then that was the end of the conversation. There wasn't anything else that we were going to be able to offer you. The public securities are now an opportunity to allocate to this asset class, although it'll be in a more indirect way. We're acquiring two businesses right now. We announced them last quarter. They're going to close in Q4. One of them, Carlisle SCA FCF, no relation to the Carlyle we know here, is a $2 billion asset manager, LP structure based in Luxembourg that allocates directly to life settlement space. So, they've been a client of ours and now they're going to be in the fold, and going forward, it's going to be accretive to earnings.
The other acquisition that we've made is FCF. It actually stands for Free Cash Flow Advisors. It's an ETF provider and it's the beginning of the buildout of the wealth management or ABL Wealth business that for us is going to be an opportunity to engage all of the individuals who are interested enough to ask us the questions about their life insurance, and if the answer is you're too young, you're too healthy, and you're of no interest to us, back to the morbid for a second, we're opening up channels to exploit all of the opportunities that we're seeing in this. Two other things in terms of growth of what the coiled spring might be. One is the amount of data that we're sitting on, having been obtained over 30 years in this core business, gives us insights that are second to none into mortality of individuals.
Our CEO has been writing articles recently. You can find them out there like on LinkedIn about how individualized mortality doesn't factor into most financial plans or most financial planning out there, and there's an opportunity to not leave cash on the table when you do that. This is from a strategic standpoint and from an opportunity standpoint out there is we know that there's an insatiable demand out there for data and how it might correlate to different investment strategies, investments, and the amount that we're sitting on is unparalleled and is second to none as well. Other thing about the wealth management or growth part of the business, or sorry, data, sorry, the data part of the business is ABL Tech. What's that? That's a growing business that's going to use our, there it is. That's going to use our technology to help pension plan providers out there.
When I heard about this, I couldn't believe it. Then again, I can't. Public pension plans have no real way of knowing whether the pensioners are still alive. There have been some pretty high-profile instances where there have been millions of dollars paid out to pensioners who were no longer with us. Our data and our processes can help pension plans, specifically public pension plans, verify mortality if the folks that they're paying out are still with us. That's a subscription-based model. We're starting it from a standstill. It's growing. The metrics are going to be discussed in our earnings call next Thursday. What's the incremental cost of taking in another subscription? It's zero. It's the beginning of how we exploit the opportunities that we're seeing from the data.
Again, so back to the core business, which remains 93% of our revenues, is the active portfolio management component of this. We see it growing across the entire spectrum here. We have second to none when it comes to the network and our ability to place these assets. So, it's a growing asset class. And then we're exploiting every opportunity that comes with the longevity planning. So, with that, thank you. Here for any questions as well. And yeah, Barry. Buying the ETF, I mean, I can understand why you just have to have this opportunity. Why do you have to have an opportunity? Why does it provide longer-term revenue by a larger portion? Two things. First of all, it is an opportunity to steer all the individuals who are coming to us with some solution.
So, if their interest or their life policy is not of interest to us, then that's the end of the conversation. We'd like not to end it there. So, we're viewing that as an opportunity. We're also using this platform. It's a potential to incorporate longevity planning and longevity options into different more liquid products. So, it's back to where do we steer, where can we steer at opportunities. So, we're looking at all of our channels and partners and partnerships to not be able to end a conversation there. Yeah. In a couple of minutes, right? So, this might have been your start, but do you hold a very high percentage of the returns policies versus being like a broker to somebody else who holds them till the death happens? No, we are making a market. We're placing the life settlements with investors who are going to hold them.
Oh, everything. So, you don't have to. Just about everything. So, we have a small LP fund that is a targeted return of about 8%-8.5%. And we're putting some of the policies into that. But the vast majority of our business is. We're sourcing the life settlements and we're placing them with the institutional investors who are in turn putting them into their portfolios and layering them in with the expected life settlement or outcome is going to be. So. Is that the choppy business when you're not waiting for death where you can consistently get new policies to turn over to the investors? Choppiness part is we're confident in what our pipeline is, but each individual policy that we acquire is a protracted individualized process. So, you think it's going to come in one quarter, it doesn't always.
It can cut the other way as well. The other potential choppiness, although it's more at the margins, is back to the underwriter purchasing the policies that we acquire. That's a natural premium to the other buyers there as well. And when it comes in, it's nice, but that's a function of acquiring the policies that we know that they're going to want. But in the overall, the steady and the growing part of our business are the institutional asset managers allocating to this asset class. And we're acquiring one of those customers as well. What's a fascinating part to me is it's based in Luxembourg. 90-plus% of their investors are European, family offices, pensions, endowments, foundations, and they're allocating some mortality by coming into the US to do it. Yes, sir.
Part of your business is basically, we'll call it the availability of information.
So, you have way more information on how to price life policies than your investors. But obviously, there's a massive gap between your knowledge and the life insurance knowledge where you're buying them off of. So, my question is, is there more margin to get at that? How do you acquire more information from the actuaries? And obviously, the insurance companies have tremendously more data than you do. How do you bridge that gap to help even juice those margins a little bit further?
The way I see the margins getting juiced, what we do is on the placement end. So, the more institutional dollars that are coming into this space, I mean, they're looking at 30% IRRs on this, albeit choppy as well. And I joke about this, but not really.
You have analysts, by the way, who will look at a number in a spreadsheet, sell, and make a move on half of that. So, where we're seeing there could be more juice isn't necessarily versus the insurance underwriters of the counterpart and the institutions trying to adapt that field. Yes, and the growing acceptance of this is a legitimate, authentic alternative asset class.