Financial advisory business Alpha Growth plc said today that it has signed a joint venture agreement with established life settlements specialist SL Investment Management that will see the pair launching a new life settlements fund strategy.
SL Investment Management (SLIM) has been in the longevity risks and life settlements investing space since 2003, providing investment management and advice to institutional investors looking to access this niche of the insurance-linked investments space and with expertise across both UK and US domiciled life policies.
Alpha Growth plc is a longevity asset and senior life settlements investment service provider that is targeting growth through acquisitions and joint ventures in the UK and the US.
This week it was announced that Alpha Growth and SL Investment Management have signed Heads of Terms to launch an Open-Ended investment fund that will invest in life settlements.
The new fund strategy is expected to launch in the first quarter of 2019 and has a minimum seed commitment of $10 million, the firms said.
The firms will both act as co-advisors, with SLIM acting as the regulated manager for the fund. The investment fund will be open to investors globally, targeting those seeking alternative asset classes with a demonstrable lack of correlation to broader financial markets.
The firms said that the joint-venture reflects the fact that their executive teams know and respect each others abilities, giving them the confidence that they can deliver a fund that provides investors the ability to allocate to a life settlements strategy that offers both transparency and alignment of interest.
The firms said the collaboration is seen as the beginning of a long-term relationship.
Gobind Sahney, Chairman at Alpha Growth, commented on the news, “We are really pleased to be working with SLIM on this project and look forward to a long and successful collaboration.”
Patrick McAdams of SL added, “The combination of Alpha and SLIM will be a strong combination unique in the marketplace. We look forward to working with Danny Swick, Gobind Sahney and their team towards the success of the Fund.”
Some insurance-linked securities (ILS) fund managers allocate capital to life settlements within their managed life ILS funds. The life settlements investment space continues to work hard to gain broader acceptance within the ILS investor universe and there is a signficant cross-over within the investor base.
However, being longevity linked assets they don’t suit all pension investors, who often have ample longevity exposure of their own, but appetite to invest in life insurance linked investments across mortality and other areas of risk continues to grow, hence the life settlements space is expected to as well.