Fri, Aug 26, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Specialist insurance firm finds that more hedge funds buy key man life insurance post financial crisis

Tuesday, June 26, 2012

amb
David Parker
Beverly Chandler, Opalesque London: Specialist hedge fund insurance group SKCG Group reports that institutional investors are pressurising hedge funds to buy key man life insurance to protect against the risk of a manager’s sudden demise.

The firm says that according to a recent survey in Institutional Investor magazine, more than $600 billion is currently managed by hedge funds whose founders will turn at least 60 in the next decade. "The retirement – or death – of star traders can wreak havoc on an asset management firm. "Billions of dollars worth of assets…are at stake," the publication states in its June, 2012 cover story on the dearth of succession plans at hedge funds".

"Hedge funds are unique. Their 'product’ is achieving positive returns and that product is often completely dependent on the intelligence and skill of one or more individuals within the firm," says David Parker, President of the Employee Benefits Division at White Plains, New York-based SKCG Group. "If a fund loses one of those individuals, the next step is often the dissolution of the company. Key man insurance can make the difference between an orderly wind down and a chaotic one," he adds.

According to their figures, SKCG estimates insurance companies wrote 10% more key man policies in 2011, compared to 2008. "It has become one more item on the institutional investors’ check list, a list that has been growing since the financial crisis ca......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Algorithms platform aims to target typical challenges found in quantitative hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva: Last month, Quantopian received investments from Point72 Ventures, the new venture capital arm of Steven Cohen’s Point72 Asset Management.

  2. LatAm hedge funds surge in 1H to +24.4%, emerging markets assets rise[more]

    Komfie Manalo, Opalesque Asia: Hedge funds investing in Latin America posted strong gains through mid-2016, reversing declines in four of the past five years, including the last three years, to lead all areas of hedge fund performance through the first half of 2016, according to the latest HFR Em

  3. Asia - LGT Capital Partners: Alternatives set for continued rise in Asia[more]

    From Asianinvestor.net: More flows are likely into insurance-linked strategies, private equity and trend-following strategies/CTAs, given the benefits of such investments, argues LGT Capital Partners. Despite the numerous quantitative easing programs and bailouts of recent years, the quest for

  4. Opalesque Roundtable: Low and high fee investments often better than mid fee hedge funds[more]

    Komfie Manalo, Opalesque Asia: Hedge funds that charge the low and high fees stuff often provide better returns than "those sort of mid-fee investments", said Keith Haydon, chief investment officer of Man FRM. (Alternative) investment managers who charge high fees would often provide the most int

  5. Hedge fund investors pull $5.7 billion in July[more]

    From Bloomberg.com: Hedge funds suffered a third consecutive month of outflows in July as investors withdrew $5.7 billion, according to industry tracker Eurekahedge. Redemptions totaled $20.7 billion in the three months through July, with money managers betting on equities suffering $18.4 bill