RYE, N.Y. (HedgeWorld.com)–Tremont Partners* launched a new platform of single-manager vehicles and funds of funds for exclusive use by insurance companies in private placement life and annuity contracts and corporate-owned life insurance.
Called LifeInvest, the platform initially will offer three strategy-specific funds of funds specializing in long/short equity, convertible arbitrage and event-driven. Tremont expects to add global macro and fixed-income arbitrage over the next several months.
LifeInvest also will allow investment with some of the single managers who underlie the funds of funds. An event-driven fund and a statistical arbitrage fund will be the first available for this purpose. Tremont, a fund of funds operator, can add or replace managers as needed.
The launch comes after a recent Internal Revenue Service ruling confirming that private placement insurance products must use funds available only to insurance providers and not controlled by policyholders in order to qualify for insurance tax status .
“Our new LifeInvest platform is designed to help insurance companies meet the need for hedge funds in their private placement insurance products,” said Sandra Manzke, co-CEO of parent company Tremont Capital Management Inc., in a statement.
According to Ms. Manzke, another benefit of LifeInvest is that it offers investment choices designed to help achieve an array of risk and return objectives within various time horizons. In addition, the structure allows for smooth transitions to new managers in cases where a hedge fund might close.