PRIVATE EQUITY AND LUXEMBOURG LIFE INSURANCE

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Article by Charles Degen, Chief Development & Local Market Officer, Cardif Lux Vie

 

With the launch of its new ICF Altaroc 2022 Internal Collective Fund, Cardif Lux Vie is innovating and offering to its well-informed clients a solution for diversifying their savings into private equity. This asset class now has its place in life insurance policies.

 

Wealthy and experienced investors operating in an international context are now expressing an increased interest in a more diversified and sophisticated offer. The unit-linked solutions offered in Luxembourg life insurance policies meet these challenges, with the possibility of tailor-made solutions. Private equity is highly popular because it allows clients to invest in the real economy and to seek returns that are disconnected from traditional markets.

However, accessing these investments is not easy without (very) good guidance. Indeed, Private equity consists of buying shares in unlisted companies, either directly (by becoming a shareholder) or via funds. And these investments are, for the most part, reserved for institutional investors.

Therefore, in order to make this asset class accessible to our well-informed clients who have both the financial capacity and the willingness to bear the risks associated with this type of investment (including the risk of capital loss or lack of liquidity), Cardif Lux Vie is launching the marketing of a new ICF Altaroc 2022 Internal Collective Fund in its life insurance and capitalization contracts. This fund offers subscribers an “all in one” solution for diversifying investments within their savings contract. We have entrusted its management to Amboise Partners, one of the oldest European private equity firms. The underlying investments are made entirely in the Altaroc Global 2022 Fund, which is itself made up of six private equity funds selected from among the best in the world.

Let us remember that the difficulty before investing in private equity is the selection of funds, as large differences in performance are observed between the different managers. The high quality of the exceptional portfolios built by the Altaroc team (including Maurice Tchenio and Frédéric Stolar, two former fund managers with nearly 80 years of experience in international private equity fund management) allows us to offer our well-informed clients quality exposure.

And to satisfy these new investors, we are proud to associate with this offer two values that are dear to us: CSR and digital. First of all, the underlying Altaroc Global 2022 FPCI is classified as Article 8 under SFDR regulations and highlights environmental and social features. Amboise Partners is also a signatory of the PRI (Principles for Responsible Investment), thus committing to include responsible criteria in its management and investment policies. Finally, this offer can be subscribed to in a completely digitalized way (initially for our French clients), 100% paperless, via our e-Club tool which offers fluid and simplified paths.

None of this would have been possible without the know-how, the expertise, and the sense of innovation of the in-house teams, which I would like to acknowledge. They all worked together, cross-functionally, and remained result-oriented. This is an excellent illustration of the partnership spirit that drives us and our unique ability to build tailor-made solutions.

In conclusion, the Company is proud to adopt a proactive development strategy for this asset class which has experienced exceptional growth in recent years. We are keen to play a key and central role in the development of this activity more generally within the market, by working closely with the main players in this ecosystem. This class of funds has now earned its place in an asset allocation for experienced investors, particularly within life insurance contracts where it is becoming an impressive diversification tool.

 

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