Mon, Dec 22, 2014
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. Investing - Big hedge funds win again on PetSmart, Riverbed, RBS sells real estate loans to hedge fund Cerberus, Talisman energy speculation: Which hedge funds could benefit?[more]

    Big hedge funds win again on PetSmart, Riverbed From CNBC.com: Another week, another set of wins for activist investors. On Sunday, pet supply retailer PetSmart agreed to the largest leveraged buyout of the year at $8.7 billion. Hedge fund firm JANA Partners had been pushing for a sale a

  2. Outlook - Hedge fund manager who remembers 1998 rout says prepare for pain, Bond guru Bill Gross predicts U.S. economic growth to dip to 2%[more]

    Hedge fund manager who remembers 1998 rout says prepare for pain From Bloomberg.com: Stephen Jen landed in Hong Kong in early January 1997 as Morgan Stanley’s newly minted exchange-rate strategist for Asia. He was soon working around the clock when investors began targeting the region’s

  3. Investing - Hedge funds get boost from healthcare in 2014, Paulson & Co takes stake in Salix on heels of inventory issues[more]

    Hedge funds get boost from healthcare in 2014 From Valuewalk.com: The healthcare sector started the year on a turbulent note, as stocks of many major biotechnology companies were battered. However, most of the players in this sector have bounced back. The BarclayHedge Healthcare & Biotec

  4. Opalesque Exclusive: U.S. legal receivables fund launched in August[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Investing in asset-backed receivables is a strategy that has been an integral part of the alternative investment space within the overall fixed income asset c

  5. Comment - High fees and low performance hit hedge funds[more]

    From FT.com: Disenchantment over high fees and lackluster performance may finally be turning the tide against hedge funds, fresh data suggest. Despite generally weak returns since the global financial crisis, hedge funds have enjoyed positive net inflows every year since 2010. This helped assets und