Life Settlements/ Viaticals- What is the comp for PMs and analysts in funds that invest in life settlements/viaticals?

I am not sure if this should go here or on asset management or credit forums instead.

I have been working on life settlement valuations/pricing in a back/middle office position for the past 2 years. I recently passed level 2 of the CFA, and am deciding if I should try to network out of the industry into a more general role in alternative/esoteric assets or into a buy side role within the industry.

Can anyone that currently works or has previously worked in the area share any info on salaries and bonuses, or any info on where to find lists on people who work in the area. I am having a hard time finding people that work on the industry, I know Apollo is a big player but I cant find anyone who works for that specific team as an example, but that seems to be the case for most of the big asset management companies. Any info will be greatly appreciatedd.

5 Comments
 

Based on the most helpful WSO content, here are some insights on compensation for PMs and analysts in various hedge fund structures, though specific details on life settlements/viaticals are not provided:

General Compensation Insights for Hedge Funds:

  1. Single Manager Funds:

    • Pros: Adaptable to various investing strategies, good mentoring environment, fast decision-making, less bureaucratic, and transparent.
    • Cons: Limited team size, becomes hierarchical as the team grows.
    • Pay: Generally good transparency. Managers can end up with a significant share of profits.
  2. Platform Funds:

    • Pros: PMs and analysts can focus on investing as administrative details are handled by the platform. Can be incredibly lucrative.
    • Cons: High pressure, frequent firing of underperforming PMs and analysts, constraints on risk-taking.
    • Pay: Deals can range from ~10 – 20% of total PnL. Platforms can afford this due to leverage.
  3. Multistrategy/Distressed Credit Funds:

    • Pros: No ceiling on PM compensation; analysts' compensation is a share of PnL.
    • Cons: Compensation can be constrained when performance is below the high-water mark.
    • Pay: PMs take home a share of profit; analysts' percentage of PnL may decrease as the total number goes up.
  4. Quant vs. Fundamental Funds:

    • Pros: Quant PMs and senior analysts at platform funds get paid well if successful.
    • Cons: Downward pressure on quant pay over time, especially for those on H1B visas.
    • Pay: Quant PMs and senior analysts are exceptions and can be well-compensated.

Additional Considerations:

  • Networking: Finding people in niche areas like life settlements/viaticals can be challenging. Networking within the industry and leveraging platforms like LinkedIn or industry-specific forums can be helpful.
  • Career Transition: With your experience in life settlement valuations and passing Level 2 of the CFA, transitioning to a buy-side role or exploring alternative/esoteric assets could be a viable path.

For more specific information on salaries and bonuses in life settlements/viaticals, you might consider reaching out to industry professionals directly or exploring specialized forums and networking events.

I'm sorry, but it looks like this may be out of my ability to answer... maybe some of the links below might help?

Feel free to explore these resources for more detailed insights.

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

usually a live and let live type but this is a pretty repugnant area of specialty finance imo, ripe with moral issues. as you know, the business is offering people upfront cash in exchange for life insurance proceeds. your counterparties are very desperate individuals who are facing possible near-term demise. you think this is generally a fair dealing? just think about the incentives / place yourself in the other position. sure, you can argue that it's a necessary service and that people's priorities change / they want a shot at living longer. i'll concede that. but at what cost? life's too short (no pun intended). do something else with your career

 

I get that, but in all honesty I view the counterparty as the insurance company as we are really trying to pay as little as possible(they usually want you to pay 50k a year for 20 years or so, and we try to pay less at the beginning and if the insured lives past certain age the premiums do get to 100k a year or so). If people dont buy the policies the insureds still need money and would either stop paying the premiums and get less or nothing, or they will keep paying premiums and not be able to enjoy money while alive. Viaticals do leave a sour taste in your mouth, but the only winner of not having them are the insurance companies that will most likely not have to pay as the policy would most likely be surrendered for less than its worth.

I am considering leaving the industry, not due to moral clashes, but because it is kinda boring in all honesty.

 

will hedge comments before based on what youre saying. moral Qs aside, work sounds pretty much like a structuring exercise. think that could be a transferrable skillset for other types of product origination, research, trading. unfort can't help too much w/ other Qs above. just general advice on networking. e.g., apollo. you don't need to find the right person off the bat. can always reach out to others in the right general area and see if they can help you navigate, for example

 

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