Thu, May 26, 2022
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

How life settlements managers earn their keep

Tuesday, November 02, 2021

Tony Bremness
B. G., Opalesque Geneva:

Life settlement managers operate close to the six-feet-under segment of the financial industry. And provided they manage their biggest risk accurately, which is no small feat, the returns to investors are almost as certain as, well, death and taxes.

Tony Bremness, managing director of Laureola Advisors, a specialised boutique asset manager, explained life settlement investments in a recent Opalesque Virtual Manager Visit.

"The life settlement transaction is one of the few in the financial markets that is a genuine win-win situation," he says. "Both the seller and the buyer win; the seller of the policy wins because investors typically pay three to four times more than the insurance company would pay as surrender value. The investor should be a winner because these policies trade at IRR (internal rates of return) between 12 and 14 percent and sometimes as high as 16 to 18 percent. But for the investor to be a winner, the assumptions that go into that valuation and that go into that calculation of the IRR on purchase must be accurate."

Life settlements have many benefits over other asset classes in that many of the assumptions that go into the investment decision are known: the price on......................

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: Long/short equity hedge fund with bear market experience has a winning quarter[more]

    B. G., Opalesque Geneva: Experience during a Russian bear market lasting five years enabled Christian Putz to identify certain investment patterns in the market which he now applies to his current investment strategy. London-based ARR Inv

  2. Opalesque Exclusive: Global equity manager focuses on symbiotic value chains[more]

    B. G., Opalesque Geneva: A global equity manager has made a point of focusing on the phenomenon of shrinking supply chains and avoiding zero-sum business models. London-based Tollymore Investment Partners is a private partnersh

  3. Satori Capital intros energy transition fund, a long/short equity strategy[more]

    Laxman Pai, Opalesque Asia: Dallas-based alternatives manager founded on the principles of conscious capitalism, Satori Capital has launched Satori Environmental, a long/short equity strategy that primarily invests in securities impacted by the global energy sector's shift from fossil-based s

  4. The Big Picture: With the war, E, S, and G have collectively moved back to the fore[more]

    B. G., Opalesque Geneva: In this interview, Dr. Patrick Welton, founder and CIO of Welton Investment Partners, offers his observations on the major macro themes expected to affect the comm

  5. Other Voices: The selloff is overdone[more]

    Authored by Heeten Doshi, founder of Doshi Capital Management. Anyone who is still bearish and calling for more downside is foolish. The selloff is overdone. To point to further declines from here is poor risk management. With the Nasdaq 100 down 22% and S&P 500 down 13% for the year