Beneficient Secures $7.44 Million in AI Fund Investment

Beneficient has finalized a $7.44 million primary capital commitment to Quartus AI Fund II LP, enhancing its investment strategy in technology and artificial intelligence ventures. This transaction marks Beneficient's second investment in an AI-focused fund managed by Quartus Capital Partners this year, underscoring the company's commitment to supporting growth-stage AI companies.

The capital infusion into Quartus AI Fund II LP is structured to scale with the fund's total capital commitments, with potential growth up to $26.25 million if the fund reaches its target of $150 million. In exchange for the investment, Quartus will receive shares of Beneficient’s Resettable Convertible Preferred Stock, which can be converted into Class A common stock at the holder's discretion.

This transaction is expected to bolster Beneficient's ExAlt loan portfolio by adding approximately $7.44 million in alternative asset interests, thereby increasing the tangible book value for its shareholders. Year-to-date, Beneficient's GP primary capital transactions have contributed roughly $17.2 million to its tangible book value.

James Silk, Beneficient's CEO, expressed satisfaction with the partnership, stating, "We are pleased to expand our relationship with Quartus by closing this Transaction with a second AI-focused fund that Quartus manages." Silk highlighted the growing significance of artificial intelligence in the technology market and the role of Beneficient’s GP Primary Commitment Program in facilitating access to capital for private investment funds.

Quartus AI Fund II is targeting growth-stage companies in sectors such as HealthTech, EdTech, and robotics. The fund aims to invest in businesses generating at least $5 million in revenue, focusing on those with substantial growth potential. Quartus believes that its diversified approach can mitigate risks while maximizing growth opportunities in the rapidly expanding AI market.

Beneficient's GP Primary Commitment Program is designed to provide essential capital solutions to general partners during fundraising efforts, addressing a significant demand for primary commitments in the investment sector. This program aims to unlock value for a diverse range of investors, including mid-to-high net worth individuals and small institutions.

The information regarding this transaction was distributed via GlobeNewswire.

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