Vida Capital, an alternative asset manager with around $3.5 billion under management in various insurance-linked strategies has raised $886 million for a new closed-end life settlement fund, which is predominantly focused on longevity-contingent risk.
The company had been targeting a $750 million capital raise for its new Vida Insurance Credit Opportunity Fund II, but raised $886 million in capital commitments from institutional investors including U.S. and global public pension plans, insurance companies, foundations, family offices, as well as some high-net worth individuals.
The Vida Insurance Credit Opportunity Fund II will target allocating its raised capital commitments to longevity-based investments within the institutional life settlement and insurance-linked assets space, the company said today.
The aim will be to leverage Vida Capital’s experience in the insurance-linked strategies space to construct a diversified portfolio of longevity-based investments, with assets targeted that have a strong cash-flow and that are largely uncorrelated with broader financial markets.
Vida Capital is integrated with Magna Life Settlements, a licensed life settlement provider. As a result, the firm can source a proprietary deal flow of life settlement investment opportunities, giving it immediate access to origination.
The new life settlements focused fund is the third capital raise for a closed-end fund that Vida Capital has completed since its inception in 2009.
The life settlements investment space continues to expand, with activity seemingly picking up in the space in 2018.
A number of insurance-linked securities (ILS) fund managers do allocate to life settlements via their life related ILS funds, however as we’ve said before there remain hurdles that need to be overcome before broader adoption of life settlements is seen across the ILS market.