The LGC Way
LotusGroup Capital focuses exclusively on uncorrelated private asset investing. We combine industry veterans with fresh analystical thinking to deliver offerings that target consistency and above average outcomes. 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 July 31, 2020 and include sister firm LotusGroup Advisors.
Where We Invest
The LGC Way – Life Settlements
Life settlements have traditionally delivered uncorrelated returns. However, putting too much capital to work at once may lead to sub-optimal results.
We seek investment alpha by matching capital raise functions to real-time sourcing capabilities. The firm focuses on purchasing smaller-face policies (< $2MM face) and predominantly sourcing in the secondary market .
Our team includes in-house underwriting, bidding and portfolio management.
LotusGroup marries industry veterans with mathematical and process-focused disciplines to target uncorrelated returns.
A critical element of our process is to manage life settlement-specific investment risks:
- Policy tail risks
- Cost of insurance optimization and increase mitigation
- Medical and life expectancy updates
- Cash reserves
- Maturity proceed collections
We have negotiated cost savings throughout the entire life settlements supply-chain, including discounts from third-party providers in sourcing, servicing, custody and administration.
It is our utmost belief that cost reduction is one of the few “free lunches” in investing.
The LGC Way – Multi-Asset Private Alts
LotusGroup has historically created asset-backed fund-of-funds in the private alternatives space, investing in areas such as infrastructure, specialty finance, and defensive real estate.
Funds have historically targeted quarterly distributions and NAV returns with a typical 4-6 year hold period.
We work hard to reduce aggregated minimums to a more accessible level than investing directly in all underlying managers. We also try to minimize J-curve effects so that investors enjoy immediate distributions. Finally, we deliver on the simplicity of a single K1 for a variety of asset class exposure.
Our underlying investment partners often enjoy the efficiency of receiving a cumulative investment as a single slot, which can help their distribution and investor relations efforts. We also try to creatively add value to partners rather than just twisting arms with volume leverage.
Discounted fees or improved access are typically negotiated.
Price discounts from investment funds, managers and third-party providers help to offset the added burden of the fund-of-fund layer of fees.
Access to direct co-investment opportunities and older vintages may also help increase returns versus investing in full-fee or current vintage offerings.
It is our utmost belief that cost reduction is one of the few “free lunches” in investing.
LotusGroup Capital’s management team has over 65 years of collective investment management history, working with our investors and partners to develop and integrate investment solutions. LotusGroup companies have a 16-year regulatory track record as an RIA fiduciary. 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
