BroadRiver Asset Management Raises $366M For New Life Settlements Fund

Nov 17 2016 | 8:56pm ET

Alternative investment manager BroadRiver Asset Management has raised $366 million in capital commitments for its second life settlements fund.

The new fund, named BroadRiver II, L.P., attracted support from institutional investors, public and private pension plans, insurance companies and large family offices in North America, Europe, the Middle East and Australia, the company said in a statement.

The fund 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's highly selective approach to asset acquisition is underpinned by proprietary analytics and a deep commitment to research, the company added. As a result, despite their illiquid underlying assets, BroadRiver's funds comprise carefully structured portfolios with strong, predictable cash flows. 

Due in part to this very deliberate portfolio construction, BroadRiver was able to profitably sell its previous portfolio, Broadriver I, L.P., late last year, only five years into a 10-year investor commitment. 

"We're pleased with the response to our most recent fund from existing and new investors," said Andrew Plevin, 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."

Formed in 2009, BroadRiver focuses on private credit investment strategies involving life settlements. Plevin and co-CEOs Philip Siller have more than 30 years' combined experience investing in life settlements. Prior to founding BroadRiver, they launched and managed the physical longevity desk at Goldman Sachs.

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