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January 27, 2021 at 03:03 AM
Carlisle Management Company SCA says it has raised $290 million for a closed-end fund that will invest in in-force life insurance policies.
The Luxembourg-based company had originally set a funding goal of just $250 million for the new life settlement fund.
(Related: IRS Clarifies Life Settlement Rules)
The investor pool for Luxembourg Life Fund: Absolute Return Fund II FCP RAIF includes institutional investors from the Middle East and Asia as well as from the United States and Europe, Carlisle says.
The new fund will invest in several hundred in-force life insurance policies. Managers say they will try to build a diverse pool of policies, with the policies having different death benefit levels, insurance carriers, insured ages and insured mortality profiles.
Life settlement industry players call the market for deals involving consumers and the life settlement providers that buy their life insurance policies the secondary market.
Industry players call the market for deals involving life settlement providers and investment funds the tertiary market.
Carlisle and other companies that run life settlement funds say the products give investors a way to invest in assets with returns that are correlated with mortality rates, rather than with stock prices or interest rates.
Jose Garcia, the chief executive officer of Carlisle, said in a statement about the new life settlement fund that a “current temporary lack of liquidity” should soften the tertiary market, and help the fund buy policies for relatively low prices.
“We believe that closed-end life settlement funds represent a solid hedge, particularly within the context of the ongoing COVID-19 pandemic,” Garcia said.
In other life settlement community news:
Wm. Scott Page, Atlanta, has introduced PolicyAppraisal.com, a website that can help financial advisors and life insurance agents find the resale value of in-force life insurance policies.
The site, which uses the firm’s Value Finder software, first asks a user a series of questions to determine whether a policy can be sold on the secondary market.
Financial professionals who visit the site can use a built-in text messaging tool to get fast answers to questions.
Berkshire Settlements Inc., Atlanta, a family-owned life settlement provider, says it has received a license to operate as a life settlement provider in Florida.
Berkshire now has the approvals it needs to buy in-force life insurance policies in 42 states.
