16/06/2010 Author: Elana Margulies

Tranen Capital set to launch longevity fund 

Tranen Capital, a British Virgin Island-based $80m life settlements hedge fund manager, is gearing up to launch a longevity fund later this year, HFMWeek has learned.

The Tranen Capital Life Fund, which is anticipated to roll out within the next few months, will buy and sell life policies held for an average of five-to-six years, compared to the firm’s flagship vehicle, which purchases contestables – policies two-years-old or less.

Arthur Bowen, director, said Tranen has decided to pursue a longevity strategy due to increased demand from investors.

“Demand for longevity risk has increased globally and Tranen launched this fund to respond to this risk,” he said.
Bowen and Kenneth Landgaard will manage the new portfolio. Before the duo co-founded Tranen, Bowen had a career practicing law where he focused on corporation law and financial and estate planning. Meanwhile, Landgaard previously consulted for multiple investment groups on life settlements.

The fund will have a $1bn capacity, €250,000 ($302,800) investment minimum, 2/20 fees and an anticipated soft lock-up. Tranen is also in the process of registering with the Irish Financial Regulator.
Tranen’s flagship fund, Tranen Capital Alternative Investment Fund, is up 7.4% YTD through April. Last year it returned 39.5%.