Carlisle raises $290m for second absolute return fund

Luxembourg-based Carlisle Management handily exceeded its initial fundraising target with its Absolute Return Fund II FCP RAIF, attracting $290 million in investor capital. The new closed-end fund’s strategy is in the area of life settlements, which has been a growing area in recent years within alternative asset management. The firm boasts a model that offers access to niche and underserved tertiary market segments. “We are extremely proud to have closed our Absolute Return Fund II above target, particularly during a period of significant global economic distress,” said Oleksandra Polishchuk, Carlisle’s chief marketing officer. “This achievement is not only a testament to investors’ confidence in Carlisle and its diligence processes, but also the fundamental importance and advantages of the life settlements industry, which is driven by an isolated mortality variable and thus limited correlation to the state of traditional financial markets.” Carlisle has roughly $2.2 billion in hedge fund assets, according to regulatory documents. Absolute Return Fund I and the latest offering are expected to continue to perform with near-zero correlation to financial markets and will be able to provide liquidity back to investors as projected. Especially during the COVID-19 pandemic, the firm sees that closed-end life settlement funds offering a solid hedge, said Jose Garcia, CEO of Carlisle. “Smart institutional capital is recognizing the benefit of entering the market now, which has been demonstrated through ARF II’s robust capital raise,” Garcia said. “We expect the current temporary lack of liquidity to soften the tertiary markets, creating sourcing opportunities.” The new fund is being deployed with several hundred life insurance policies across multiple parameters. These include face value, insurance carrier, age, mortality profile, carrier rating and gender, among others. According to the firm, the fact that temporary capital dislocations create opportunities to source policies at higher discounts, means that gross expected returns at purchase have the potential to exceed original return targets.

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