Marquee’s investment strategy is designed to convert a diversified pool of existing life insurance contracts into a professionally underwritten portfolio with return drivers that differ meaningfully from traditional public markets.
In a life settlement transaction, a policy owner sells an existing life insurance policy to a third-party buyer. The purchaser pays the seller, assumes responsibility for future premiums and ultimately receives the death benefit if and when the policy matures, subject to the policy contract and carrier claims process.
Marquee’s planned fund strategy focuses on policies covering older insureds, generally age 80 and above, to concentrate underwriting on a defined longevity segment. Age alone does not determine value; life expectancy, medical underwriting, policy type, premium schedule, carrier quality and acquisition price all materially affect economics.
The timing of mortality cannot be predicted with certainty for any individual. Portfolio construction is therefore designed to spread longevity exposure across multiple insureds and policies rather than depend on a single outcome.
Multiple policies can reduce dependence on any single maturity event or insured life expectancy.
Issuer strength, policy documentation, contestability status and claims-paying considerations are evaluated as part of due diligence.
Premium requirements and liquidity needs are modeled under base, delayed-mortality and stress scenarios.
| Factor | Effect on Life Settlement Economics | Management Focus |
|---|---|---|
| Longevity | Longer-than-projected survival generally increases premium cost and delays death-benefit receipt. | Independent life-expectancy inputs, diversification and stress testing. |
| Purchase Price | Acquisition cost directly affects expected return. | Policy-level pricing and disciplined bidding. |
| Premiums | Future premium requirements can materially affect total invested capital. | Carrier illustrations, premium optimization and cash reserves. |
| Carrier / Policy | Policy validity, contract terms and carrier claims performance affect collectability. | Legal, policy and carrier due diligence. |
| Public Markets | Mortality itself is not driven by equity-market performance; however, fund operations and financing may still be affected by broader economic conditions. | Conservative liquidity planning and transparent risk disclosure. |
Life settlements can have lower direct sensitivity to public-market movements, but they remain exposed to longevity, liquidity, premium, carrier, legal, tax and regulatory risks.