Seasoned life settlement portfolio targets long-term capital appreciation with noncorrelated returns for institutional investors
CHICAGO, May 13, 2025 /PRNewswire/ — AIR Asset Management (“AIR”), a Chicago-based alternative investment manager specializing in longevity-linked strategies, announced the official launch of AIR Genesis Fund LP (“Fund”), a closed-end fund seeded with $229 million in assets. The Fund was established as part of AIR’s strategic restructuring of its flagship vehicle, AIR U.S. Life Fund II. The initiative was supported by capital from existing investors who elected to invest in this dedicated life settlement strategy.
The AIR Genesis Fund seeks to generate long-term capital appreciation by investing in a diversified portfolio of U.S.-domiciled life settlements—an asset class that has historically offered noncorrelated and predictable return potential. The initial portfolio consists of 283 life insurance policies, collectively valued at $458 million in death benefit. As of January 2025, 93% of policies, by face value, are underwritten by investment-grade carriers. The weighted average age of the insured is 85 years old.
“This launch represents the next evolution of our platform and a focused opportunity to unlock long-term value through a seasoned portfolio of life settlements,” said Richard Beleutz, CEO of AIR Asset Management. “We’re proud to continue serving our investors with solutions that align structure, return expectations, and long-term planning.”
The Fund’s structure reflects growing institutional interest in the space. According to a recent Conning & ELSA survey of 156 allocators, 44% of institutional investors plan to increase their allocation to life settlements in 2025, compared to just 12% planning a reduction.
A Targeted Strategy Built on a Seasoned Portfolio
AIR Genesis Fund’s investment approach centers on acquiring and holding life insurance policies to maturity as its primary goal, with the opportunity to sell select policies, seeking to generate returns that are less influenced by macroeconomic cycles. The Fund’s portfolio was constructed by AIR and seeded with policies originally held in AIR U.S. Life Fund II, following a comprehensive asset and liability reallocation process completed in January 2025.
While future performance cannot be guaranteed, the life settlement asset class has historically provided investors with attractive risk-adjusted returns, especially within closed-end structures that mitigate liquidity pressures. AIR Genesis Fund anticipates initial cash distributions to begin 24–36 months after the capital raise, as policy maturities accumulate.