Investment options
Due to the diverse needs of institutional investor clients, there are many ways for qualified investors to invest in this sector, including:
- Custom managed accounts
- Structured Notes
- Investment in funds focused on life settlements
- Derivative securities and debt instruments
Custom Managed Accounts
Direct investments in life settlements are often managed through a life settlement originator, Life Settlement Solutions, Inc., one of the premier settlement providers in the industry. LSS works with a diverse pool of institutional investors in this marketplace and can assist in developing a purchase program to fit each investor’s needs. Life Settlement Solutions can help customers:
- Arrange, customize and design investment and derivative structures,
- Source, evaluate and acquire portfolio assets,
- Analyze portfolios and produce custom reports, as desired,
- Service policies to make premium payments, monitor insured status and collect death benefits.
Life Settlement Solutions and its management team have collectively participated in the purchase of in excess of $2 billion dollars (FV) for a client base that includes large global banks and other institutional investors. The management team developed the first institutionally-funded life settlement transaction platform in 2001.
The proprietary distribution network of LSS sources several billions of dollars in face value monthly, helping to facilitate efficient fulfillment of investor portfolio requirements and capital deployment. LSS is able to transact settlements nationwide and possesses industry renowned operational, pricing, contracting, compliance and legal capabilities that allow it to respond quickly to the evolving needs of its clients.
For more information on custom managed accounts, contact Kurt Gillhaus at 818/227-5155 or kgillhaus@lifefirms.com, or by visiting www.lss-corp.com.
Structured Notes
The life settlement market has spun off a variety of investment products including structured notes, fund interests, derivatives and debt instruments. Historically, returns in these instruments have varied from low double-digits to the mid/upper teens depending on the product selected.
A variety of structured notes are available with varying degrees of principal protection, coupon rates and leverage. Basic structures that are available include:
- Coupon Notes
- Leveraged Notes
- Principal Protection Notes
Investment in funds focused on life settlements
Investment funds have formed with a variety of structures in geographies worldwide. Their terms vary but most offer investment opportunities in longevity linked assets. They offer a lower barrier to entry for investors that do not have sufficient capital for a managed account and also provide an option for Fund of Funds investment vehicles.
Derivative Securities and Debt Instruments*
The life settlement market has spun off a variety of investment products, including derivative securities and debt instruments. These products include structured notes and fund interests. Historically, returns in these instruments have varied from low double-digits to the mid/upper teens depending on the product selected. Life Solutions International will work to tailor a solution for almost any investor looking to venture into this asset class.
* past returns are no indication of future performance