Who we are
The Rhinebeck Fund, LLC (“Rhinebeck” or “Fund”) purchases life insurance policies for investment from policy owners who seek a better alternative to lapsing or surrendering the policy. We offer a capital market option to such policy owners, who get a free look at their policy’s value without any obligation to sell. As such, the transfer of the policy from seller to buyer only takes place if both parties are happy with the deal. All purchases are made in compliance with all applicable laws of the jurisdiction in which the policyholder resides (these purchases are regulated on a state level in most jurisdictions).
High-Yield (current market 12% to 15% target; active portfolio 21%; historical >100%)
The Fund opened in 2011. Historical results on triggered policies exceed a 100% IRR (these policies came due much earlier than expected.) Regardless, on a weighted-average basis, we project a 21% IRR for policies currently in portfolio.
Rhinebeck’s current target for new acquisitions is a gross IRR % of between 12% and 15%. Projected yields have fallen recently because institutional funds have increasingly deployed resources into this market in light of historically low interest rates in other markets with little promise of improvement. With more money pursuing the policies, policy valuations are being driven up in the bidding process. Policy valuations depend mostly upon:
ü projected future costs for keeping the policy in force; and
ü the life expectancy of the person on whose life the policy is written (Insured). For this, Rhinebeck relies on evaluations of the Insured’s medical records performed by its own internal physicians as well as by outside actuarial firms recognized in the industry.
When a policy pays off, investors receive the first 10% of IRR, and the Manager and investors split the balance.
Diversified; Non-Correlated; Lower Risk
Insurance carriers pay the Fund when the Insured passes, and then the money is distributed to the Investors and the Manager in accordance with a success-based distribution formula. The timing and amount of the payment are unrelated to the securities markets. In view of global turbulence and the volatility in the stock and currency markets, and extremely low yields available in the bond market, it is sensible for your clients to diversify their holdings into a non-correlated investment.
Investment through a Self-Directed IRA
While many investors have invested non-retirement funds, this investment is most attractive to investors using IRA funds. The attributes of an investment in Rhinebeck are similar to that of funds invested in an IRA:
- It is illiquid (payouts to investors occur only when policies come due);
- It is long-term (life expectancies vary between 6 months and nine years – with the average LE below 5 years);
Investing through an IRA or ROTH allows the investor to reap the benefits with funds that are subject to similar restrictions, thus eliminating issues with liquidity or the duration of the investment. Rhinebeck is an approved institution for investment through a self-directed IRA/ROTH by Millennium Trust Company.
- Rhinebeck Fund, LLC is exempt from securities registration under Reg. D.
- You may not sell this investment opportunity. It is not registered as a security.
- We are interested in referrals to your existing clients whom you know well, for whom this may be suitable, who are already accredited investors and who pass due diligence. This summary is not directed to you as an investor.
- You will be compensated for your referral that leads to a new investment, but such compensation will not be directly connected to amounts invested, nor will you be paid upon the closing of such investment or commitment.
- Please contact us for further information. Erez Rotem, LUTCF, Pres. 917.334.6789; Alex Sirotkin, JD, CEO 919.307.3726
The above summary should not be relied upon in making investment decisions. Rhinebeck Fund LLC has a detailed Private Placement Memorandum, including an Operating Agreement, Certain Risk Factors and accompanying documentation on which potential investors may rely (the “PPM”). The PPM must be read, fully understood and weighed in any investor’s decision to invest in the Rhinebeck Fund, LLC. Earnings rates or yields are not guaranteed. Investors will not have ready access to their invested capital. This summary and any associated or accompanying literature is for informational purposes only and no investment can or will be accepted by the Rhinebeck Fund, LLC except pursuant to the terms and disclosures contained in the PPM. This summary shall be distributed only by the Company and no other person is authorized to make such distribution.
- The Rhinebeck Fund purchases policies through licensed “Providers” where required, including its own affiliated Provider – Golden Bridge Funding, LLC.
- This is based upon the average life expectancy amongst all LE sources for each policy. Results are not guaranteed. Past results do not guarantee future performance.