#USA #Chicago #AIR Asset Management #Life Settlements #AIR Genesis Fund

AIR Asset Management Launches AIR Genesis Fund

AIR Asset Management, a prominent alternative investment firm based in Chicago, has officially announced the launch of the AIR Genesis Fund LP, a closed-end fund designed to meet the surging institutional demand for life settlements. This significant initiative is seeded with a substantial $229 million in assets and represents a strategic pivot from the firm's prior flagship vehicle, the AIR U.S. Life Fund II. The venture is strongly supported by existing investors who have chosen to direct their capital into this dedicated life settlement strategy.

The AIR Genesis Fund aims to achieve long-term capital appreciation by investing in a carefully selected and diversified portfolio of U.S.-domiciled life settlements, an asset class known for yielding noncorrelated and predictable returns. Currently, the fund's initial portfolio includes 283 life insurance policies valued collectively at approximately $458 million in death benefit. As of January 2025, an impressive 93% of these policies, by face value, are backed by investment-grade carriers, with the average age of the insured individuals being 85 years old.

Richard Beleutz, the CEO of AIR Asset Management, expressed enthusiasm regarding the launch, stating, "This launch signifies the next evolution of our platform and offers a focused opportunity to unlock long-term value through a seasoned portfolio of life settlements. We are committed to providing our investors with solutions that align with their structure, return expectations, and long-term planning goals."

With increasing institutional interest in this space, recent surveys reveal that 44% of institutional investors plan to boost their allocations to life settlements in 2025, a stark contrast to only 12% intending to decrease their investment.

Targeted Strategy Built on a Seasoned Portfolio

The investment strategy behind the AIR Genesis Fund emphasizes acquiring and holding life insurance policies until they mature, while also allowing the possibility of selectively selling some policies. This approach is designed to target returns that are less susceptible to fluctuations in macroeconomic cycles. The portfolio itself has been constructed by AIR, utilizing policies that were initially held in the AIR U.S. Life Fund II, following a thorough asset and liability reallocation process completed earlier this year.

While no investment performance can be assured, historical data indicates that the life settlement asset class tends to offer attractive risk-adjusted returns, particularly within closed-end structures which are effective in alleviating liquidity issues. The AIR Genesis Fund anticipates initiating its first cash distributions 24 to 36 months post-capital raise, as policy maturities start to accumulate.

For more in-depth information about AIR Asset Management and its offerings, feel free to visit www.airassetmanagement.com.

About AIR Asset Management

Founded in 2014, AIR Asset Management is a Chicago-based alternative investment manager that specializes in life settlements, annuities, and private credit. The firm has established a commendable track record of managing longevity-linked assets, focusing on delivering noncorrelated returns and long-term value to both institutional and high-net-worth investors. As of December 31, 2024, AIR manages over $700 million in assets across various proprietary and sub-advised strategies, leveraging a fully integrated platform that includes the complete ownership of life settlement provider Q Capital.

Important Disclosures

This article is intended for informational purposes only and does not constitute an offer to sell or a request for an offer to purchase any securities. Any such offer will only be made through the Fund's private placement memorandum and related documentation. Please note that life settlements involve substantial risks and may not be appropriate for all investors. We recommend consulting with your financial, tax, and legal advisors before proceeding with any investment decisions.