The US based advisory firm has launched a new fund, investing exclusively in life settlements, as the business sets in motion plans for growth in Australia.
With a minimum investment of US$5 million, the fund targets an 8% net return to investors, is denominated in USD and will be between US$250 million and US$350 million.
According to the firm, the fund’s closed-end structure is ideal for institutional investors wishing to access this unique asset class. The initial close is slated for 1 December 2022.
“Life settlements are life insurance policies, no longer needed by the insureds, which are sold to an investor; the investor pays the premiums and in time collects the death benefits,” Laureola managing director Australia and New Zealand Nathan Wares explained.
“It follows that a well-managed life settlement fund can make money regardless of any turmoil in the financial markets.”
The new fund launch comes after the soft entrance of the firm into the Australian market two years ago. According to Wares, however, we can expect a whole lot more from Laureola.
“We certainly plan on growing our business in Australia,” Wares said.
“We already have a feeder fund for private wealth clients, which we attract business to from direct and private wealth firms. This is now our new launch into the institutional market, and we are probably the only player in this asset class in Australia at present.”
He adds: “It’s really good timing for us, because if you look at the volatility in the markets, there is opportunity for us to give investors a steady return in the highest single digits without the volatility we’re seeing in the equity and the bond markets.”