The Life Settlement asset class is a non-correlated investment category that offer investors an opportunity for portfolio diversification and balance.
WHAT WE DO
LSX Capital Management (LSXCM) builds customized life settlement portfolios for investors seeking diversification through this non-correlated asset class. We match client-specific guidelines with the right policy inventory to provide end-to-end portfolio management coupled with a results-based fee structure.
Our mission is to provide investors unparalleled access, expertise, and transparency to the growing Life Settlement investment marketplace.
After launching the nation’s largest Life Settlement marketplace, two members of the founding team spun off to create LSX Capital Management. While the marketplace centralized real-time deal flow and data analysis, independent investors still struggled to get deals done. LSXCM goes beyond sourcing to handle underwriting, acquisition, and complete portfolio management of Life Settlement investment portfolios. We also provide investors with access to all sourced policies, including shorter life expectancies that are often purchased inside the supply chain and rarely make it to the secondary market.
HOW IT WORKS
Life settlements allow original policy owners to unlock the otherwise hidden economic value in their policy so they may benefit from a non- correlated asset class.
A Life Settlement is a cash payment given in return for a transfer of ownership and the right to receive the face value of a life insurance policy.
Candidates for life settlements are typically 65 years or older and own a life insurance policy with a face amount in excess of $250,000.
OPPORTUNITY FOR BOTH PARTIES
Before the formation of the Life Settlement market, owners of life insurance policies received little, if any, economic value from policies they no longer wanted, needed, or could afford. More than 90% of all life insurance policies lapse, meaning that no tangible financial value is ever provided to the original policy owner or beneficiary over the lifetime of the life insurance policy. LSXCM provides liquidity for policy owners when there’s greater value in the policy than surrendering the policy to the issuer.
Despite the allure of this non-correlated asset class, most investors don’t have the access, the process, or the expertise to participate. The Life Settlement market represents a significant and growing opportunity given the aging United States population and the number of senior citizens seeking to bolster their retirement savings by selling assets that require periodic payments. Conning Research & Consulting estimates that the United States gross market potential for life settlements will range between $188 billion to $230 billion in face value from 2019 to 2028.
THE LEADERSHIP TEAM
Joey has 30+ years of experience working for companies that range from startups to large caps. Joey leverages his entrepreneurial, technology, sales, and marketing background to assist companies with capital raising and deployment. Joey has been active in the Life Settlement space for nearly a decade, first as an investor and now as Managing Partner at LSXCM.
David is a veteran operator who has led teams across industries at companies ranging from startups to large caps. David has spent the last five years focused on identifying growth and innovation opportunities in the Life Settlement space. David leads operations and finance at LSXCM and holds a bachelor of science degree in management from New York University.
Joel has 25 years of technology experience including architecture and construction of enterprise-level applications for major finance and healthcare companies. For the last seven years, he has worked with other members of LSXCM to pioneer technology solutions that provide efficiency in Life Settlement case acquisition, management, and evaluation for acquisition partners.
Darren is a board certified, practicing anesthesiologist with 30+ years of experience. He leads a team that performs the medical underwriting for each policy under consideration. Darren received his medical degree from the University of North Carolina School of Medicine and trained at the UNC Hospitals in Chapel Hill, NC.
Elliot is a seven-time venture-backed entrepreneur who has built, scaled, and sold several notable internet brands. He has also led strategy and growth initiatives for prominent brands in institutional finance, and syndicated and placed over $500 million of investment capital into various alternative investment vehicles. Elliot is an advisor and partner at LSXCM.
THE LSXCM DIFFERENCE
UNPARALLELED ACCESS TO DIRECT INVENTORY
LSXCM acts as your gateway providing access to all of the policies we underwrite. Our strong industry relationships allow us to aggregate hundreds of policies each month and analyze them through a purpose-built, proprietary platform.
Being a successful investor in the Life Settlement market requires money, diligence, and patience. During underwriting, diligence is the key. Without the right expertise, life settlements can be difficult to value, and under- or over-estimating the life expectancy for the insured party or failing to understand the future costs of the policy can significantly impact returns. If you don’t take the time to understand, you may lose money by mis-estimating either of these factors.
At LSXCM, we take a patient, deliberate approach. The volume and velocity of policies we underwrite allows us to decline marginal opportunities.
The closing process for direct life settlements is especially complex. Not only can it be an emotional time for the seller and the beneficiaries, but the documentation is lengthy and complicated. Documents must be notarized or witnessed and we require sign-off by all beneficiaries. The process is also specifically regulated in 43 states.
LSXCM is your gateway, analyzing each policy submission we receive.
During Financial underwriting, we determine which policies and carriers are financially viable for investment and analyze the costs required to keep each policy in force.
Medical underwriting is a multi-step, proprietary process.
Once a case, which is the combination of a policy and an insured, completes our underwriting process, its viability as a life settlement is determined.
SUCCESS IS IN THE BUYING.