Our Approach
Institutional investors have historically benefited from attractive risk-adjusted returns and portfolio diversification of private investments. While a wider audience of accredited investors is beginning to gain access, costs often remain high and return opportunities can be watered down.
LotusGroup Capital delivers intelligently-crafted private investment funds with reasonable investment minimums. We combine deep analytical thinking with respected industry veterans to deliver reliable offerings that push the envelope beyond status quo. We also focus on delivering some “free lunch” through cost reduction in the value chain, negotiating price breaks with suppliers, servicers, and administrators. Finally, we select investment opportunities that allow for stakeholder value maximization with sellers, buyers, investors, and partners. This is critical to our mission of “maximizing human potential”.
LotusGroup companies have been in business since 2004. Figures presented are as of March 31, 2020 and include sister firm LotusGroup Advisors.
LotusGroup Funds
LotusGroup Longevity Fund (“LLF”): Available Now!
LLF is an alpha-seeking and open-ended private fund that invests in life settlements, a historically attractive and uncorrelated asset class. The Fund marries industry veterans with the Firm’s mathematical and process-focused disciplines to provide an attractive opportunity for accredited investors.
LLF predominantly aquires small face life settlements in the secondary market. The Fund employs a rigourous underwriting and bidding process to manage tail risks while historically delivering 10-14% targeted annualized returns. Premium optimization and medical reviews are performed annually with the opportunity to trade a portion of the portfolio while holding the majority of policies until maturity.
LLF can be placed in both taxable and retirement accounts, and the Fund is available at many major custodians.
LGC has uncovered and negotiated cost savings throughout the entire life settlements supply-chain. Every LLF partner transacts with the Fund at a contracted dicount to industry pricing, including sourcing, servicing, custody, and fund administration.
It is our utmost belief that significant cost reduction is one of the few “free lunches” in investing, and we are on the forefront of that concept with LLF.
Our mission is to “Maximize human potential.”
LLF and its partners help increase consumer awareness that a life settlement can help fund a retirement plan or provide critical resources to those in need.
LLF investors also benefit from access to an institutional investment at an accredited level with accessible minimums.
Finally, RIA and family office partners can count on LotusGroup as a transparent fiduciary “in their corner.”
LGA IncomePlus Fund (Fund-of-Funds): Closed Q3/2019
IncomePlus is an asset-backed alternative investment that is ideal for investors who believe we are late in the economic cycle. The fund brings together eight of our favorite investment managers to invest in infrastructure, lending & specialty finance, and defensive real estate…all under a single roof and with only one K1.
The offering targets both near-term income (“Income”) and longer term NAV gains (“Plus), with a mid-term 4-6 year hold period until exit. Investors enjoy immediate distributions, diversification from public markets, and the possibility for above average long-term returns.
The fund can be placed in both taxable and retirement accounts, and is available at most major custodians.
It is always our goal to negotiate the best deal possible before committing investor’s hard-earned capital. Often that means discounted fees, while other times it may mean access to an older vintage or a lower minimum.
With IncomePlus, our negotiated underlying fund discounts help to offset the added fund-of-fund layer of fees and in many cases the all-in cost is cheaper than going direct. We have also obtained access to direct co-investment opportunities and older vintages that are no longer available, increasing time-weighted IRRs versus currently available offerings. Finally, we have sourced and secured reduced expense arrangements from our operational partners.
Our mission is to “Maximize human potential.”
With IncomePlus, we have negotiated scenarios for our underlying general partners, including efficiencies with their slot counts, helping their distribution efforts, or simply being a good business partner. Our success doesn’t come from simply twisting arms with volume leverage, but rather by being more creative in how we can help these valued partners.
From an investor perspective, we have reduced the aggregated minimums to a more accessible level. We have also worked hard to minimize J-curve effects so that investors can enjoy immediate distributions. Finally, we have built the offering to create instant diversification to important private asset classes, while having the simplicity of a single K1.
LotusGroup Capital’s management team has over 65 years of collective investment management history, working with our investors and partners to develop and integrate world-class solutions. LotusGroup companies boast a 16-year unblemished regulatory track record. We look forward to meeting you and learning how we can help maximize potential for your business and your clients.
Make. Life. Count.
Key Team Members
