L Bonds are fixed income, non-traded bonds of GWG Holdings, Inc. (GWGH), a public company. With L Bonds investors have the potential for higher income and increased diversification.
L Bonds are secured by the assets of GWGH which includes a large, actuarially diverse portfolio of life insurance policies of highly rated life insurance companies as well as a strategic investment in The Beneficient Company Group, L.P. (BEN), a financial services company providing proprietary liquidity solutions to owners of alternative assets. Obligations under the L Bond will also be guaranteed by GWG Life, LLC, a direct wholly owned subsidiary of GWGH, and a pledge by that company of collateral security in all of its assets.
MINIMUM INVESTMENT: $25,000
UNCOVER POTENTIAL OPPORTUNITIES WITH GWGH
Potential for Higher Income
Alternative investments offered by GWGH may deliver higher yields than traditional investments.
Asset allocation strategies to diversify a portfolio that worked a decade ago may fall short in today’s complex market environment. Alternative investments may add diversification to a traditional portfolio and may help mitigate overall portfolio risk. Diversification and asset allocation strategies do not guarantee investment returns and do not eliminate the risk of loss.
Reallocate a percentage of assets away from traditional investments (e.g. publicly traded stocks and bonds) and add a separate, ongoing allocation to alternative investments. In this strategy, the alternative investments are treated as a separate sector within the portfolio.
Complement existing sectors with alternative investments of the same broad asset class. GWGH offers an alternative asset investment in the fixed income asset class.
Investing in L Bonds may be considered speculative and subject to a high degree of risk, including the risk of losing the entire investment. The prospectus provides a comprehensive listing of risks. A summary of those risks include but are not limited to: GWGH’s limited operating history, a continued need to access financing, changes in economic environments including interest rates, the fact that the L Bonds are subordinate to senior debt of GWGH, including any senior credit facility, actuarial experience and other factors. Investors should purchase L Bonds only to the extent they are able to bear the risk of loss of their entire investment and have no need for immediate liquidity. Lack of liquidity is a result of certain restrictions on transfer, and no public trading of L Bonds is expected to develop.
Information is subject to change without notice and may not be updated. GWGH is under no obligation to update any information included herein. The information and expressions of opinions are subject to change without notice and speak only as the respective dates in which they are made.
Bonds are secured by the assets of GWGH and a pledge of all common stock by its largest stockholders. Importantly, GWGH most significant assets are cash and its investment in subsidiaries. Obligations under the L Bonds are also guaranteed by its subsidiary. The majority of the life insurance policy assets are held in GWG DLP Funding IV, LLC, which is a direct subsidiary of GWG Life, LLC. The life insurance policies held by GWG DLP IV will not be collateral for obligations under the L Bonds, although the guarantee and collateral provided by GWG Life will include its ownership interest in GWG DLP IV. These facts present a risk to investors that the collateral security granted by the subsidiary for obligations under the L Bonds may be insufficient to repay the L Bonds upon an event of default.