Luxembourg’s Carlisle Management Successfully Concludes Full Deployment of Absolute Return Fund II

29 September, 2022

Carlisle Management Company SCA, a leading investment manager in the life settlements space, has finalized the deployment of its second in a series of closed-end funds, Luxembourg Life Fund: Absolute Return Fund II FCP RAIF. The portfolio has been deployed within 18 months after capital raise completion, fully in line with our expectations. With over $290M in committed capital invested in over 600 life settlement policies, the fund is diversified across multiple parameters including but not limited to face value, insurance carrier, age, mortality profile, carrier rating and gender. At the same time the purchase gross expected returns are above our original targets. 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 II offers several advantages for investors. Liquidity risks are limited due to its closed-end structure to exploit the uncorrelated nature of the asset class. Assets are valued at cost and income is 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 Absolute Return Funds to continue performing with near zero correlation to financial markets and begin to provide liquidity back to the investors as originally projected. Carlisle has successfully executed the drawdown on the Fund’s leverage, provided by the renowned household lender. The leverage is used as premium facility to minimize cash drag on performance and further amplify actual returns.

“Having been in the life settlement industry for decades and having worked with some of the world’s largest investors, provides the Carlisle management team with a unique positioning and sourcing. 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. “Investors having originally rushed into the asset class based on the premise of easily available cheap capital may now be forced to exit at rather discounted prices. We believe Carlisle can continue to capitalize on current and future opportunities as well as potential for increased supply given the demographic changes in the US.”

“Given the so called “crisis of value” which certainly impacts many of the private assets given continuously tightening money supply many institutional investors turn to Life Settlements as one of the few sources of truly uncorrelated returns.” concluded Oleksandra Polishchuk, Carlisle’s Chief Marketing Officer.

Carlisle is currently deploying Absolute Return Fund III, launched in 2021 and has begun fund raising capital for Absolute Return Fund IV, due to begin its deployment in 2023