Insurance Backed Financing
As liquidity tightens and capital costs increase amid rising interest rates, companies, especially those in higher-risk sectors, face escalating borrowing expenses. Consequently, they are exploring alternative strategies, such as insurance-backed financing, to de-risk their business models and secure cheaper debt in both public and private markets.
In today’s marketplace, where risk-based capital is scarce, we’ve pioneered a proprietary approach using insurance-backed financing to help mitigate risks, enabling companies to raise debt without equity dilution in private and public debt offerings.
Insurance-backed financing allows smaller businesses to leverage the balance sheets of billion-dollar insurers, securing comparatively cheaper debt duration-matched to off-take agreements. Leveraging an insurer’s balance sheet provides clients with a shadow rating, facilitating access to low-cost debt and offering a risk-adjusted path forward for ESG-related investments.
Life Settlement Securitization:
Our firm, in collaboration with partners, has introduced an investment-grade life settlement-backed bond, rated “BBB” or higher by a national rating agency, catering to U.S. and foreign-qualified investors. We’ve identified portfolios of life settlement assets totaling approximately $1 billion for securitization, subject to stringent selection criteria and thorough due diligence.
Biofuel Project Securitization:
We’ve structured an investment-grade biofuel-backed bond, offering consistent, attractive yields with potential residual distributions for investors. This model mitigates risk through a performance guarantee from a globally S&P-rated insurer, financeable off-take agreements, and expert operational management. Our proprietary securitization models, validated by independent U.S. third parties, support projected bond return profiles.
Renewables Private Equity Fund:
Our management team is spearheading Renewables, a private equity vehicle for investing securely in renewable energy projects, providing investors with enhanced opportunities in this promising sector.