Luxembourg’s Carlisle Management Successfully Concludes Large Scale Life Settlements Sale6 November, 2017
LUXEMBOURG, November 6th, 2017 — Carlisle Management Company SCA, a leading investment manager in the life settlements space, has finalized the sale of a portion of its Luxembourg Life Fund: Long Term Growth Fund FCP SIF’s portfolio of assets. The recent transactions represent a significant portion of the Long Term Growth Fund’s existing portfolio of life insurance policies, and serves as another example of larger trades being conducted between established institutional participants inside the tertiary market of the industry. Teleios LS Holdings III DE, LLC, an affiliate of funds managed by Oaktree Capital Management, L.P., purchased the largest segment of assets.
Using the leading investment bank, Houlihan Lokey as investment banker for the transaction, the management team at Carlisle secured a sale that was not only beneficial to its investors, but also demonstrated the increased liquidity profile of the marketplace, among other positive benefits.
“Many open-end funds in our industry are reliant predominantly on unrealized gains to generate returns for investors and realize profits only when maturities actually occur,” said Jose Garcia, CEO of Carlisle Management Company. “However, if an open-end fund offers redemptions to its investors, the manager has the fiduciary responsibility to generate realized profits not only from maturities but also from trading. This is the only way an open-end fund can ensure to meet its liquidity needs. Transactions like this, realize profits for investors from policy sales, and provide fund managers with the opportunity to prove to investors that the valuation is indeed mark to market and working as it fundamentally should. To say that an asset is worth a certain value is one thing. To demonstrate that asset’s value through an actual sale, well that is entirely different.”
The Long Term Growth Fund’s portfolio was built slowly over the past decade using a very rigorous origination process and a set of ever-evolving quality standards set by the management team at Carlisle. A transparent and mark to market valuation system has been utilized by the Fund since inception, which has been proven soundly over the course of numerous trades where policies have been sold at book value or at a profit. “We feel it is important for fund managers in our industry to become more comfortable with the auctioning of policies. It is our intention to perform further sales in the future to increase the cash turnover on our open-end fund and further realize income for our investors” added Garcia. “Without establishing a proven and predictable network of buyers, a fund manager cannot ensure sufficient access to the market and therefore the liquidity profile of an open-end fund, investors have no real way of mitigating liquidity associated risks, and the industry is undermined due to lack of transactions. We see a trend towards growing number of transactions, which will increase the liquidity profile of the industry and bring life settlements to the next step of its evolution.”
Potential buyers in the tertiary market for life settlements are most definitely more prevalent then even just a few years ago. “As alternative investing continues its growth in popularity, it is not surprising that institutional interest in the life settlement market has seen such a dramatic uptick,” said Tim Mol, Managing Director and COO of Carlisle. “We were pleased to have the opportunity to work with such a well-regarded firm like Houlihan Lokey to successfully accomplish this transaction. The confidence of our investors as well as our partners in the industry has always been a paramount priority for our organization.”
About Carlisle Management Company
Established in 2008, Carlisle is a leading, highly diversified global investment management firm. Our state-of-the-art facilities and statistical modelling systems incorporate knowledge gained from 60+ years of combined investment experience within the alternative asset sector. Supervised by the Luxembourg regulator and being subject to controls of reputable audit firms at both management company and fund level, we operate independently, which allows us to focus solely on investors call for transparency and performance, within a regulated framework providing accurate management of the risks involved while maximizing investment returns.
About Houlihan Lokey
Houlihan Lokey (NYSE:HLI) is a global investment bank with expertise in mergers and acquisitions, capital markets, financial restructuring, valuation, and strategic consulting. The firm serves corporations, institutions, and governments worldwide with offices in the United States, Europe, the Middle East, and the Asia-Pacific region. Independent advice and intellectual rigor are hallmarks of the firm’s commitment to client success across its advisory services. Houlihan Lokey is ranked as the No. 1 M&A advisor for all U.S. transactions, the No. 1 global restructuring advisor, and the No. 1 global M&A fairness opinion advisor over the past 20 years, according to Thomson Reuters.
Subscribe to News & Updates
Get the latest news from the Carlisle Management Company team.