Raphael Martorello brings over 20 years of investment experience to his role as managing partner and CIO of LotusGroup Capital. Raph leads a team with over 50 years of combined life settlements experience.
“We started our wealth management firm to build durable partnerships with advisors and investors. With low-returning fixed-income returns and highly volatile public equity markets, we focused on finding meaningful alternatives. Life settlements happened to be a very attractive sector to us, offering the potential for excellent returns as well as highly uncorrelated results relative to the economy and public investment markets.
Many life settlement funds tend to be closed-end with up to 10-year lockups, whereas we were focused on delivering asset class returns but with a shorter hold duration. We also noticed that fees and costs were relatively high throughout the entire life settlements ecosystem. The consumer was getting somewhat underpaid for their policy and the investor was having to deal with high costs and fees. Net-net, we saw an exciting asset class that should be doing great but was difficult to access and had a high-cost structure. After searching three years for the right solution, we eventually decided to build it ourselves, and have now been investing in the life settlements space for more than six years.
We approach this asset class with the mentality that every dollar we're managing is somebody’s hard-earned dollar. This capital represents the opportunity to help provide solutions for consumers while delivering financial security and opportunity for each investor. We listen and understand where each person is coming from and try to deliver on their stated needs.”
Ned Rule, Head of Distribution
LotusGroup Capital focuses exclusively on uncorrelated private asset investing. We combine industry veterans with fresh analytical thinking to target consistency and above-average outcomes. We also focus on delivering some “free lunch” through cost reduction in the value chain, negotiating price breaks with suppliers, servicers, and administrators. Finally, we select investment opportunities that allow for stakeholder value maximization with sellers, buyers, investors, and partners. This is critical to our mission of “Maximizing Human Potential.”
Welcome to PrimeAlpha's interview series where we will share insights from industry practitioners discussing their journey and their discoveries.
Check us out on these platforms.