Exceeds initial fundraising target by $40 million
Reinforces foundational value of low correlation life settlements investments
LUXEMBOURG, Jan. 21, 2021 /PRNewswire/ -- Carlisle Management Company SCA ("Carlisle"), a leading, multi-award-winning life settlements investment manager and trusted client partner based in Luxembourg, today announced that it has successfully raised $290 million for its new closed-end fund, Luxembourg Life Fund: Absolute Return Fund II FCP RAIF, surpassing its $250 million target. The Fund has attracted a diverse base of institutional investors across Europe, the Middle East, Asia, and the U.S.
Carlisle and its seasoned team of executives have been active investors in low correlation assets for more than two decades. Since its inception, Carlisle has been focused on building a robust independent sourcing model, which has enabled it to have access to unique opportunities in rather niche and underserved tertiary market segments. The firm's Absolute Return Fund II ("ARF II" or "The Fund") will uphold Carlisle's highest global standards of ethics, independence, and professionalism and will further capitalize on Carlisle's sourcing advantage.
"We are extremely proud to have closed our Absolute Return Fund II above target, particularly during a period of significant global economic distress," said Oleksandra Polishchuk, Carlisle's Chief Marketing Officer. "This achievement is not only a testament to investors' confidence in Carlisle and its diligence processes, but also the fundamental importance and advantages of the life settlements industry, which is driven by an isolated mortality variable and thus has limited correlation to the state of traditional financial markets."
The Fund offers a number of advantages to investors, including i) limited liquidity risks due to its closed-end structure and ii) no cash flow disruptions to the Fund's valuation and performance, given that assets are valued at cost and income is only recognized when it is realized. Carlisle expects that both its Absolute Return Fund I and new Absolute Return Fund II will continue to perform with near-zero correlation to financial markets and will provide liquidity back to investors as originally projected.
"Today's milestone builds upon decades of Carlisle's industry experience and complete access to the life settlement markets," said Jose Garcia, CEO of Carlisle. "Smart institutional capital is recognizing the benefit of entering the market now, which has been demonstrated through ARF II's robust capital raise. We expect the current temporary lack of liquidity to soften the tertiary markets, creating sourcing opportunities. Further, we believe that closed-end life settlement funds represent a solid hedge, particularly within the context of the ongoing COVID-19 pandemic."
Deployment of the Fund, which includes several hundred life insurance policies, commenced last year and is diversified across multiple parameters. These parameters include face value, insurance carrier, age, mortality profile, carrier rating, and gender, among others, sourced at predicted return levels in line with Carlisle's expectations. Due to the fact that temporary capital dislocations create opportunities to source policies at higher discounts, Carlisle believes that gross expected returns at purchase have the potential to exceed its original return targets.
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 modeling 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 reputable audit firms' controls at both management company and fund level, we operate independently, which allows us to focus solely on investors' call for transparency and performance. Our regulated framework provides accurate management of the risks involved while maximizing investment returns.
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