Life Partners Position Holders Trust and BroadRiver Asset Management Complete Sale of Life Partners Portfolio
Life Partners Position Holders Trust (the "Trust") and BroadRiver Asset Management, L.P. ("BroadRiver") announced that on September 6 the Trust and BroadRiver completed a transaction for the sale of all non-cash assets of the Trust to certain affiliated entities of BroadRiver. The transaction provides valuable final closure to a lengthy bankruptcy process for clients of Life Partners, Inc. NorthStar Life Services, LLC will continue in its capacity as servicer of the assets.
Mike Quilling, Trustee of the Trust, said "This represents the end of a long and painful road for many original investors in Life Partners. After several years improving the position of the Trust, the Trust's board determined it was in the best interests of investors for the subject portfolio of policies to be sold, and the Trust terminated. We are pleased to find a buyer with deep longevity expertise such as BroadRiver, and the long-term financial resources to support the remaining investors."
Andrew Plevin, Co-Founder and Co-CEO of BroadRiver Asset Management said "This transaction underpins the firm's latest investment program and highlights BroadRiver's distinctive capabilities in this space. BroadRiver is gratified to participate in the resolution of the Life Partners investors' long journey and to provide long-term support for the ongoing holders of fractional interests."
The transaction brings substantial benefits to all classes of investor in the Trust: unit holders, IRA Partnership Interest ("IRAP") holders and continuing fractional holders ("CFH"). After selling the Trust's interests in the life insurance policies held by the Trust, the Trust will make a final distribution to certain Trust participants (unit holders and IRAP holders) and be dissolved. The sale eliminates the burden of administrative and compliance costs borne by these participants, particularly as the size of the pool decreases over time. For CFHs, the transaction provides ongoing liquidity options, with a liquidity mechanism in place for six years following the transaction in the event of individual investor defaults on premiums.
John McFarland, CEO of NorthStar, said "We are pleased that BroadRiver has chosen to continue NorthStar's engagement as servicer to this complex and labor-intensive portfolio. We look forward to working with them and continuing to provide exemplary services to the CFHs and the portfolio as a whole."
About Life Partners Position Holders Trust
The Trust is a publicly reporting grantor trust which is managed by a Trustee and an advisory Governing Trust Board. It has approximately 13,000 investors and approximately 4,000 continuing fraction holders.
About BroadRiver Asset Management
Founded in 2009, BroadRiver is an alternative fixed income firm specializing in the pursuit of uncorrelated investments characterized by attractive yield, high credit quality, low volatility and self-amortization.
Website: https://broadrivercap.com/
About NorthStar Life Services
NorthStar Life Services, LLC offers a full range of premier services to institutional and private investors in life insurance policies, providing assistance at each stage of the life settlement investment cycle. The firm manages every transaction and portfolio with a personalized solution that considers the investor's goals, budgetary requirements and risk tolerance in order to construct a strategy designed to maximize investment returns.
Website: http://northstarlife.com/
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