BroadRiver Asset Management is helping to end a long-running life settlement company bankruptcy story.
The New York-based alternative asset manager today announced that it has completed the purchase of the non-cash assets of Life Partners Position Holders Trust.
NorthStar Life Services will continue to provide customer service and accounting services for the Life Partners life settlement portfolio, BroadRiver said.
The trust itself, which was formed in 2016 to oversee the Life Partners operations as a result of the Life Partners bankruptcy proceedings, will shut down, according to BroadRiver.
Details about the assets transferred and the deal price were not immediately available.
What It Means
The deal could affect the investments of any clients who invested in Life Partners stock, including some who may have invested in the stock through IRAs.
Mike Quilling, the trust trustee, acknowledged that the deal "represents the end of a long and painful road for many original investors in Life Partners."
But the deal appears to be in the best interests of the investors, Quilling said.
"We are pleased to find a buyer with deep longevity expertise," he added.
The History
Life Partners was a Waco, Texas-based pioneer in efforts to help investors invest in pools of in-force life insurance policies. The company sold stock to members of the public in 2000, and its shares traded on Nasdaq.
The company also had investors who were classified as partners rather than as public shareholders.
The company ran into trouble when some investors and others alleged that the company had underestimated the life expectancy of life insurance policy insureds and given investors unrealistic return projections.
The company filed for bankruptcy in 2015, and Nasdaq delisted its stock later that year.
