Sat, Aug 1, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Pensions, endowments, family offices reconsider life settlement investments

Thursday, April 10, 2014

Bailey McCann, Opalesque New York:

Hedge funds were once the largest investors in the life settlement industry, now the industry is seeing more interest from pensions, endowments and family offices directly. Life settlements have always been considered a niche part of the investing landscape, and their high rate of return was attractive to hedge funds. However, as hedge funds have shifted to more short term investing allocators themselves are stepping in.

"The typical timeline for an investment like this is minimum 7 years, that can be a long time for a hedge fund to be locked up in an investment in the current environment," Scott Page, president and CEO of The Lifeline Program tells Opalesque. "Instead, we're seeing more interest from pensions, endowments and family offices that have a longer term investment horizon and can stay with these vehicles for the long haul."

The Lifeline Program provides life insurance settlement options for life insurance policyholders that wish to get out of unwanted or underperforming policies. Typically one of these policies is considered underperforming if a policy holder took out universal life coverage when interest rates were much higher and now sees little help from interest rates in terms of cost and coverage. Depending on the age of the policyholder, investors who wish to purchase these policies can find a decent return multiple.

"Well constructed life settlement portfolios can have long term returns in the low- to......................

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: Despite bumpy June/July, CTAs hold on[more]

    Bailey McCann, Opalesque New York: To say that things have been rocky in managed futures recently is putting it mildly. In June, the industry saw its worst month on a performance basis in the past four years. Then yesterday,

  2. Investing - Hedge fund billionaires bet on London as revival gathers pace[more]

    From Bloomberg.com: London’s fund industry is bouncing back, and U.S. billionaires Steven A. Cohen and Ken Griffin are grabbing a piece of the action. Griffin’s Citadel and Millennium Management, a hedge fund run by Israel Englander, have bulked up in London, where asset growth is outpacing the U.S.

  3. Other Voices: Same day reporting and the evolving role of fund administrators[more]

    By: Scott Price, Head of Business Development and Client Management for North America, Maitland Ernst & Young’s latest glob

  4. Cowen Group, Inc. to acquire Conifer Securities[more]

    Cowen Group, Inc. and Conifer Securities, LLC had announced the signing of a definitive agreement under which Cowen will acquire Conifer Securities, the prime services division of Conifer Financial Services LLC. The transaction, the terms of which have not yet been disclosed, was approved by the boa

  5. Cargill’s Black River Asset to shut down four hedge funds[more]

    Komfie Manalo, Opalesque Asia: Cargill Inc.’s $7.4 billion Black River Asset Management said it was closing four hedge funds with a combined $ 1 billion in assets and start returning investors money over the next several months, various media said. The hedge funds represent 15% of Black River’

 

banner