Loyalty economy is a vast global ecosystem growing 3x faster than global GDP
Points of Value: tracking the global Loyalty currency bullionUSD billions by book value
The Loyalty ecosystem straddles the world’s largest consumer verticals, and is projected to grow 3x faster than global GDP. At current price-to-book, 2020 capitalization of the sector would exceed US$ 1trillion.
Note: Figures excludevalue associated with non-currency based loyalty or customer incentive programs.
Source: Affinia Volo Loyalty World Market Forecast 2015, Bloomberg, equity research reports, ACE
Loyalty currencies today represent the largest non-sovereign bullion in the world
Loyalty points create value by changing consumer behavior
Institutional sales of loyalty points exceed US$ 60 billion each year
without a Central Bank
* Values as of 4/30/2016
** Varies by carrier type and industry cycle
Source:U.S. Bank research, Colloqui Loyalty Survey, IATA Economic Outlook, Nilson
Three main roles in Loyalty-related money flow today
|Loyalty Operators (e.g. program entities or parents)||Financial Sponsors
(Private Equity, Hedge Funds, Institutional Investors)
|Examples||AA Advantage, Airmiles||Citi Cards, AMEX||General Atlantic, AEP|
|Profiles||Currency-based captive or coalition loyalty program, typically in partnership with participants from other industry verticals||Buy rights to use points in own business as marketing incentive||Seek exposure to the industry due to favorable economics and risk performance relative to underlying industries|
|Focus and conduct||
ACE is designed as an effective solution to short-term challenges and accelerator of long-term growth in Loyalty
|Current challenges||How ACE helps resolve|
New global accounting standards:
Global regulation changes:
No market for Loyalty assets:
How it works - PBS trading on ACE
|Airlines||Banks/Credit cards||Investors/Financial Sponsors|
ACE technology footprint features Nasdaq’s leading X-Stream™ platform and custom suite of value-added applications
The ACE Team
ACE’s Leadership team and advisors have over 70 years of experience in strategy, corporate finance, M&A, and Loyalty. ACE is led by Atanas Christov, as the Founder and CEO. He is a seasoned executive and advisor to some of the biggest names in loyalty, finance and travel. He pioneered Loyalty Finance and proven results delivering value in multi-disciplinary environment and financial markets. He held positions as CEO of venture-backed VAYANT Travel Technologies and Senior Consultant at McKinsey.
Rest of the ACE leadership team brings expertise in co-brand credit card portfolio transactions, credit card securitization, loyalty program transactions, developing and improving ongoing loyalty programs for leading airlines, hotels and co-brand credit card issuers. The team also brings in extensive experience in leading a broad range of technology solutions for travel suppliers.
Current ACE team has strong insight and the right relationships to develop, launch and guide the company forward.