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SCS Ventures, LLC was formed to capitalize upon current market opportunities within the lucrative Life Settlements Industry and the rapidly emerging secondary markets. We coordinate origination, organize, finance, and manage life insurance portfolios for eventual sale in the secondary markets. We have established the right team and structure to maximize profitability and limit risks in order to sustain growth into the future.
Currently, billions of dollars are being poured into life insurance portfolios by hedge funds, large banks, and pension funds. Credit Suisse, Wells Fargo, and Berkshire Hathaway are just a few of the mega players in this emerging market. The development of a robust and rapidly growing secondary market for life insurance policies has created a new asset class that is enabling lenders to deploy capital into highly standardized and secure contracts with returns triple that of intermediate bonds. In most cases, policies are organized into blind-pooled trusts (to protect the identity of the insured) with duration of 10 years or less. Financial intermediaries organize these blind pools, then either hold them to term or sell them off in the secondary life settlement market. Industry insiders estimate that $2 billion in loans were established in 2004 and by the end of 2005 $8 billion or more will be in effect. To date, the market has developed three independent roles that make the business possible: the agents, the financial intermediaries, and the lenders. At SCS Ventures, our unique advantage is that we manage the agents and function as the financial intermediary. Unlike our competition, we have first-hand knowledge of the insureds and can more adequately assess the risk inherent in each policy. With this in mind, we will organize the policies we acquire into the most advantageous and lucrative asset pools. These pools will be prearranged as blind trusts overseen by a third-party trustee to insure the privacy of the underlying insureds.
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