Investing in secondary market for US life insurances


Between 2004 and 2008 the core team behind Argo Venture ́s capital markets subsidiary Argo Capital Solutions structured and supported raising multiple equity funds with a total volume of € 222 m for LIFETRUST; the funds were initiated for its client and portfolio company Berlin Atlantic Group and attracted more than 8000 private investors.

Stefan Beiten and Nikolaus Weil, who are also representing the institutional investors with a seat on the board of Berlin Atlantic Group, initiated a total of 12 funds with varying equity structures ranging from private placements to zero bonds and public funds. The team that benefits form first-hand insight into the American investment landscape wanted to enable German investors to partake in a substantial and intriguing US asset class and related financial products.

An external – secondary – market for reselling life insurance policies is vital to counter-balance the insurers’ otherwise limitless power over the repurchase value of policies surrendered by their owners. A secondary market creates possibilities to profit for policy owners and investors alike. Unfortunately, the inherent risks make life settlements an inappropriate investment for most small investors. That’s why the North American Securities Administrators Association, Inc. (NASAA) established guidelines to ensure that only accredited life settlement investors are permitted to buy life insurance policies in said secondary market. That is where Beiten and Weil came in with their funds. Some of the first to be dissolved yielded pre-tax returns of 12.7% p.a. and 13,0% p.a., respectively, for their investors.

Lawyers and finance experts Beiten and Weil are key figures at both Argo Capital and take on board seats securing their investors interests in various portfolio companies.

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