Fortress International has launched a Luxembourg Life Fund, Fortress International Capital & Partners SCS, which allows qualified investors residing in tax treaty countries to take advantage of this transparent and efficient investment vehicle.
The fund, which has started to receive subscriptions, is to issue its first share price on 1 June, 2010 and is targeting annual returns of 8 to 10%.
The fund is based upon Senior Life Settlements and is managed by portfolio managers Peter Dodd and advised by investment advisor Jose Garcia of Carlisle Management Company. It seeks long-term capital appreciation by investing in a diversified portfolio of life settlement assets based on United States life insurance policies. Collectively, the team has more than 25 years of experience in the life settlement industry.
"Fortress International has a long and distinguished history of investing in high-quality life settlement assets," says Peter Dodd, Fortress’s Fund Manager. "This is an opportunity for clients to capitalize on an emerging asset class and diversify their portfolio with non-correlated investments. With Life Settlement assets at historically low acquisition costs, investments in this asset class over a medium to long term timeline will provide our clients with an expanded access to this asset class."
Luxembourg is recognized as the premier domicile for life settlement funds, due to its tax-advantaged status and investor rights-friendly regulations. Assets under management in Luxembourg rose by 24% to EUR 1.9 trillion (USD2.5 trillion) by the end of last year, partially as a result of interest within the Life Settlements industry. Luxembourg provides Fortress International Fund with cutting edge fiduciary operations and a stringent regulatory environment in which to expand the fund’s global operations.
"Recent market pressures and the latest EU creditworthiness turmoil has investors looking away from short and long term bonds, and life settlement investments fill a vacuum and a demand in today’s risk conscious environment," says Jose Garcia, Chief Executive Officer of Carlisle Management Company. "Launching a new fund in Luxembourg, Europe’s premier fund domicile is a very strategic move for Fortress, whose investors will benefit from a transparent and efficient structure, and also give Fortress a competitive edge."