Stockholm (HedgeNordic) – After reaching $100 million in assets in the fourth quarter of last year, Ress Life Investments – an alternative investment fund investing in the secondary market for U.S. life insurance policies – now manages over $150 million. “Continued strong capital inflows from both existing and new investors in Europe and Asia has led to a record level of assets under management,” wrote Stockholm-based alternative investment manager Resscapital in an announcement.
Ress Life Investments buys and holds life insurance policies until they pay out. The alternative investment fund buys existing insurance contracts from policy owners at a discount to face value in an attempt to turn a profit when the insured passes away by collecting the death benefit. This secondary market for life insurance policies allows policy owners to cash out of unnecessary life insurance policies. According to Gustaf Hagerud (pictured), managing director of Resscapital, “the market remains very active and we’re busy purchasing new policies at attractive IRR’s.”
Last year, Ress Life Investments achieved its best annual performance since launching in April of 2011, booking a yearly return of 9.9 percent. The fund gained 4.6 percent in the first seven months of 2019. Ress Life Investments, which first reached the $100 million-milestone in the final quarter of last year, had $151.5 million in assets under management at the end of July. The fund first reached more than $50 million in assets in the second quarter of 2015.
Commenting on the growing assets under management, Hagerud says “volatile equity markets have created awareness and increasing interest among both institutional investors and family offices and we are positive regarding the future.”