Bankruptcy & Receivership

The NorthStar Advantage

Our clients and referral sources point to five key advantages that we provide when the chips are down and the stakes are high, as evidenced by the following industry reviews:

NorthStar is comprised of a highly skilled group of life settlement professionals with an executive team that has more than 80 years of combined life settlement experience. I’m confident that NorthStar will continue to enhance the value of the (Life Partners) portfolio and streamline operations of the trust.

Michael J. Quilling

Trustee

Life Partners Inc. Position Holders Trust

The decision to retain NorthStar to service the life insurance policies owned by a post-Chapter 11 bankruptcy investment trust proved to be an outstanding choice. The NorthStar team is professional, efficient, experienced and responsive. They go the extra mile to make sure you are completely informed and comfortable with portfolio-related issues. I have no hesitation giving them my highest recommendation.

Maggie Smith

Trustee

Mosaic Management Group Inc.

As the premier investment bank handling the disposition of life settlement portfolios, it is important for Houlihan Lokey to work with best-in-class servicers. NorthStar is highly regarded in the life settlement industry as an experienced provider of policy servicing and management services that have a significant impact on the performance of a portfolio that is in trouble. These proven skills are crucial when we are working together to resolve complex transactional issues surrounding distressed portfolios.

Jeffrey Bollerman

Managing Director

Houlihan Lokey

We considered a number of portfolio managers before hiring NorthStar and we have never been disappointed with our decision. John and his team are professional, knowledgeable and pro-active. When challenging situations occurred, NorthStar was ready with a plan of action. When it was time to sell the portfolio, NorthStar took the lead, knew the players in the market, and guided us to an excellent result. NorthStar has been a pleasure to deal with and I would highly recommend them without reservation.

Jeffrey Bast

Insolvency Counsel

Partner, Bast Amron

NorthStar has a unique ability to come into a complex situation involving a distressed portfolio with multiple policy types and bring financial discipline to the portfolio management. For the LPI PHT, John’s team applied their expertise and their proprietary software to conduct a sophisticated analysis of the policies contained in two different investment pools, ultimately saving us more than $20 million of premium expenses in their first 60 days on the job. More broadly, NorthStar has created an environment in which investors have greater clarity about the status of their holdings and the Trust directors have improved visibility into the performance of the portfolio.

Phil Loy

Board of Directors

Life Partners Inc. Position Holders Trust

Most common stress factors

When a portfolio experiences financial distress, there is often a very short period of time within which to diagnose and to determine the sequence of decisions to prioritize. Any one of these risk factors can trigger the unfortunate result of court-supervised bankruptcy or receivership.

Liquidity Management

Every portfolio must have sufficient cash flow and/or other sources of funding in order to protect the assets.

Without this liquidity, no amount of skilled management will produce a positive outcome. Liquidity issues must be addressed quickly and properly managed to reduce the risk of “fire sale” situations that further deteriorate the value of the portfolio.

Investor Redemptions

Life settlement portfolios perform most profitably when they are not subject to frequent, unscheduled redemptions and can be professionally managed over a multi-year timeline.

The forced liquidation of these funds by investor redemption calls can cause significant distress in the management and performance of portfolios.

Leveraged Debt

Some portfolios have been financed by the issuance of high-yield bonds or other highly leveraged loans that were used to purchase life insurance on the secondary market.

The interest payments required by this leveraged debt can create a cash squeeze resulting in potential default or lender foreclosure.

Navigating a Distressed Portfolio

Life settlement portfolios face unique market forces that can create sudden business risks for fund managers. Read more about these specific threats and how we assist with the management of distressed life settlement portfolios.

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July 20, 2022

Bankruptcy & Receivership Policy Servicing

Settlements in Cost of Insurance Litigation Reduce Uncertainties in Life Settlement Industry

One of the historical axioms in the life insurance business was that the premiums illustrated…

by NC_Administrator

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