November 19, 2020
North Channel Bank Provides Liquidity Support for US Life Settlements Customers with Policy Repurchase Option
North Channel Bank offers US Life Settlements customers with short-term liquidity needs an interesting alternative to traditional financing. “We have developed a model that is attracting a lot of interest. It involves buying policies from customers through our 100% affiliate North Star Life Settlements Trading, LLC, to provide the liquidity they want or need,” explains Stefan Rensinghoff, Managing Director of North Channel Bank. “With a time-limited repurchase option, the customer has the option to repurchase these policies at the appropriate time. We are planning to increasingly conduct this business together with NorthStar Life Settlements Trading in the future.”
US Life Settlements funds, which would otherwise have to sell policies to third parties in order to generate liquidity, e.g. for premium payments, may also be interested in this option. Therefore, the bank expects strong demand for this interesting product in the US Life Settlements market.
Extensive Expertise in Asset Class US Life Settlements
North Channel Bank is one of the few institutions worldwide which finances investments in US Life Settlements. Financing is individually tailored to the term and structure of the investment. Portfolio acquisition, payment of recurring premiums, leverage or repayment of existing loan liabilities may be covered. There are various ways to invest in this asset class. For example, it is possible to invest in bank loans extended to long-term Life Settlements customers. Co-investments in US Life Settlements together with North Channel Bank can also be an introduction to this asset class before an independent direct investment is considered.
North Channel Bank GmbH & Co. KG was founded in 1924 as the privately owned bank Bankhaus Oswald Kruber located in Berlin. In 2009, a North American group of investors with expertise in the US Life Settlements sector acquired the bank and renamed it North Channel Bank. In the following years, the bank developed into one of the leading institutions in US Life Settlement financing. For many years, the bank has been working with the experienced and renowned US servicer NorthStar Life Services, LLC, a former affiliate, and offers not only financing but also investments in US Life Settlements. The affiliate NorthStar Life Settlements Trading, LLC, Irvine, California, renamed in 2020, handles the trading of policies in this business segment. In the Structured Finance division, the bank focuses, in particular on financing in the renewable energy sector (focus: equity interim financing), capital goods, and growth financing.