In a recent transaction, Q Capital advised a European private equity firm on the acquisition of a portfolio of policies.  The policies were purchased from a large distressed portfolio where the policy seller was not entirely cooperative with the purchaser’s efforts.  Without the client having prior industry experience, Q Capital provided extensive industry and market research and analysis in order for its client to assess whether it wanted to be an investor in the asset class.  After crossing that threshold decision and deciding to proceed, Q Capital provided the following buy-side advisory services:

  • Policy and portfolio valuation
  • Due diligence services
  • Advice on selecting legal counsel
  • Arranged escrow services
  • Document acquisition
  • Contract and purchase price negotiation
  • Change form preparation and processing
  • Complete policy historical premium review
  • Transition to Q Capital’s servicing platform

In another recent transaction, Q Capital was hired as a sell-side advisor by a European closed-ended investment fund that was looking to sell a part of its portfolio.  Q Capital:

  • Acquired updated policy documentation in preparation of the sales process
  • Provided a portfolio valuation analysis
  • Prepared sales documentation materials
  • Contacted potential purchasers
  • Managed the entire sales process
  • Negotiated the purchase price and sales documentation on behalf of its client
  • Coordinated the communication between multiple parties involved in the transaction – buyer, seller, escrow agent, securities intermediary, etc.
  • Ordered verification of coverage information from the life insurance companies
  • Managed the change of ownership and beneficiary process

Q Capital was successful in executing transactions in both of these instances in tough circumstances that involved multiple parties, distressed sellers, and incomplete policy documentation.  Furthermore, Q Capital was able to deliver higher value (lower purchase price in the former example and higher sales price in the latter) than the clients’ expectations going into the process.