Carlisle Management Company SCA, a leading investment manager in the life settlements space, has finalized the deployment of its Luxembourg Life Fund: Absolute Return Fund I FCP SIF. The portfolio has been deployed within 12 months, fully in line with Carlisle’s expectations, and currently includes several hundreds of Life Insurance policies diversified across multiple parameters including but not limited to face value, insurance carrier, age, mortality profile, rating and gender. At the same time the gross expected returns at purchase have exceeded our original targets. This gives us confidence in being able to deliver robust investment performance for Absolute Return Fund I. The recent transactions serve as another demonstration of Carlisle’s unprecedented position in the industry. The establishment of a proven and well diversified network of sourcing partners has ensured sufficient access to the tertiary market and our ability to utilize unique time-to-market opportunities often inaccessible to other market participants.
The Absolute Return Fund I offers a number of advantages for investors beginning with limited liquidity risks due to its closed end structure. Additionally, assets are valued at cost and income only recognized when it is realized, providing that any short-term money supply fluctuations will have no impact on the fund’s valuation and performance. We expect that our Absolute Return Funds will continue performing with near zero correlation to financial markets and begin to provide liquidity back to the investors as originally projected. Finally, Carlisle has successfully executed the drawdown on a new leverage facility, provided by a renowned private lender. The leverage is used as premium facility in order to minimize cash drag and further amplify actual returns.
“As we continue to deploy capital for our Absolute Return Funds, we put our emphasis on a proactive strategy, reinforcing existing market relationships and building new ones,” said Jose Garcia, CEO of Carlisle Management Company. “At the same time, we may be presented with a unique opportunity of buying Life Settlements at discounted prices due to the current economic environment, which would further enhance returns to our investors. Carlisle believes that Life Settlements will have a limited impact from the current economic downturn, as it is a long-term investment strategy with limited correlation, and will outperform relative to traditional financial markets during these uncertain times.”
All in all we believe that for investors willing to bear some illiquidity, the robust and uncorrelated qualities of life settlements make it a unique diversification tool in times of market fluctuations. “Investors in today’s uncertain economic environment are seeing the benefit of life settlements and are realizing that their fundamentals remain unchanged,” concluded Oleksandra Polishchuk, Carlisle’s Chief Marketing Officer.
