BroadRiver Asset Management has held the closing of BroadRiver II, with committed capital of USD366 million.
The life settlement fund includes commitments from a broad range of institutional investors, including public and private pension plans, insurance companies and large family offices in North America, Europe, the Middle East and Australia.
"We're pleased with the response to our most recent fund from existing and new investors," says Andrew Plevin (pictured), co-CEO of BroadRiver Asset Management. "The breadth and diversity of our limited partner investors affirms the confidence of institutional investors in life settlements. Institutional interest in this space has expanded dramatically in recent years and we expect to see continued long-term growth."
BroadRiver II targets attractive risk-adjusted returns with low volatility and negligible correlation to financial markets by holding hundreds of non-contestable life insurance policies, along with other longevity-risk assets, issued primarily by investment-grade insurance companies.
BroadRiver was able to profitably sell its previous portfolio, BroadRiver I, just five years into a 10-year investor commitment.
"BroadRiver's rigorous approach to underwriting is informed by a curiosity about what we don't know, and a healthy skepticism about our own assumptions," says Philip Siller, co-CEO of BroadRiver Asset Management. "The result is conservative modelling which reduces cash-flow volatility and risk to principal, without sacrificing returns or the timely deployment of capital."