Life Settlement Funds
Life Settlement Funds on Rise
Lately, through this website and recent networking events I have spoken to many startup and mid sized hedge funds who are working with or in areas connected to life settlements. If you have never heard of life settlements or funds which invest in them please see the article here below that I just came across:
The market for exotic securities hasn’t entirely gone away. It’s just gone underground—-six feet under, to be precise.
Hedge fund Davidson Kempner Capital Management is plunging into life settlements—a market in which speculators buy-up unwanted life insurance policies from wealthy individuals looking to score some quick cash. The $10 billion New York-based fund is planning on selling so-called “death bonds” to overseas investors, as part of a plan to potentially raise cash to finance its life settlements acquisition business.
In January, DK Life Settlements Acquisition Ltd, a foreign company with ties to Davidson, filed an offering statement with Irish regulatory authorities to sell up to $1 billion in “participating notes.’’ The terms of the offering weren’t made public, but the notes are due on Dec. 1, 2058. The long payout on the bonds is leading to speculation that the bonds will be backed, in part, by the death benefits the hedge fund collects on the life insurance policies it acquires—hence the name death bonds. source