LTG Fund Presentation 2015

Private & Confidential 1

Luxembourg Life FundLong Term Growth Fund Overview



Table of Contents.3. About Us

6. What is a life settlement?

7. The industry

8. Asset Class Advantages

10. Market Future Outlook

13. Investment Strategy

14. Life Settlement Asset Variables

17. Benefits & Risks

23. Long Term Growth Fund

25. Our Management Team

29. Contact Us



About UsWhy Carlisle Funds?

¾Open-ended funds that seek to deliver above average market returns for investors through the life settlement asset class or secondary market for life insurance.¾Offers investors an actively managed life settlement fund strategy.¾Focused exclusively in our core competency, life settlements. ¾Mark to Market Valuations through independent valuation service providers.¾Offer returns with minimum correlation to traditional financial markets.

Why Life Settlements?

X The life settlement industry is one of the fastest growing sectors in financial markets today with 15 + consecutive years of positive growth. X Life settlements have numerous advantages unique to the asset class including easy market entry, uncorrelated investment returns and low volatility.



Why Carlisle Funds?Our expertise and unique knowledge within the U.S. secondary life insurance market provides investors with a competitive advantage for three reasons:

1. We have a unique approach to how life settlement funds are managed. This is why we developed our funds from the ground up with best practices in mind.

XMark to market valuationsX Independent accounting valuation and reportingX Tax transparent and regulated investment structure

2. Our team has direct experience in every phase of the life settlement process allowing us to employ unparalleled risk and yield assessment.

X Experience: Our team has worked in every aspect of the secondary market including life settlement brokers, life settlement providers, and numerous life settlement funds.X Efficient: Our intimate knowledge of life settlement sources allows us to acquire policies that meet and exceed quality standards at a fraction of our competitors’ costs.

3. Attractive risk adjusted yields derived from executing strong fundamental competency while mitigating risks during policy selection.

About Us



Why Carlisle Funds?¾Fully regulated investment funds – Carlisle is a regulated fund management firm that works with regulated investment vehicles.

¾Institutional Service Providers and Counterparties – Carlisle only works with approved institutional counterparties.

¾Fully Tax Compliant – offering options for all types of tax situations in a compliant manner.

¾Completely Transparent – Our investment vehicles are fully transparent and investors are free to perform all necessary due diligence.

¾Independent Valuation – All valuations are performed by independent external valuation agents and audited periodically for compliance and accuracy.

¾Mark to Market Valuation approach – Our valuation methodology provides investors with robust reporting of the fair market value of their investments.

About Us



Background:A life settlement is the transfer of ownership and beneficiary rights of an unwanted orunneeded life insurance policy on an insured senior in exchange for a cash settlement.The seller no longer has the responsibility of paying future premiums. In exchange, investors profit based on the difference of the face value of the policy and acquisition and maintenance costs.

Market Catalyst:Prior to life settlements, seniors who owned U.S. life insurance policies they no longerwanted, needed, or could afford were faced with either letting the policy lapse orsurrendering the policy back to the insurance carrier for only a small cash value. The lifesettlement marketplace has provided consumers with a much needed option where theycan receive substantially more than the cash surrender value.

What is a Life Settlement?

> ”By the end of 2010, total life insurance market in the United States was $18.4 trillion, an increase of 2 percent from 2009”

-ACLI Life InsurersFact Book 2011



Institutional Market:The secondary life insurance market today is dominated by institutional investors attracted byits continued expansion and uncorrelated investment returns. The increase in sophisticationmakes the market more efficient and has founded a positive evolution in the industry.

Market Driver:Purchasing life insurance in the secondary market at a discount can produce attractive returns.The largest institutions globally are benefiting from the stability that diversified life settlementinvestments have brought to their portfolios.

Tertiary Market:Due to its growth and number of participants, a tertiary market for life insurance has evolvedwithin this industry, allowing institutional investors to buy and sell policies within the space.This tertiary market has been growing significantly and providing liquidity to the asset class.

Industry

“U.S. seniors 65+ are expected to control $800 billion of life insurance by 2030, with $161 billion believed to be eligible for life settlements “

-Bernstein Research



Low Correlation Asset Class:While most asset classes are typically affected by interest rate fluctuations, earning projections or credit rating shifts, life settlements are less sensitive to general drivers of global market turmoil and maintain an uncorrelated nature.

Limited Credit Risk:No US Life Insurance Company has ever neglected to pay a legitimate insurance claim. Insurance carriers are heavily regulated and are required to maintain extensive reserves and solvency requirements in each state.

Positive Market Growth:The U.S. life settlement industry continues to experience significant growth, with an estimated $12 billion plus annually in transaction volume, and is expected to reach $100 billion in the next decade.

Asset Advantages



Asset AdvantagesHistorical Attractive Returns:When compared with other asset classes, life settlements have consistently generated attractive long-term results.

0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00%

Life Settlements

Equities

Corp Bonds

Gov Bonds

Inflation

CD's

T-Bills •Intermediate Government Bonds are represented by data from the Wall Street Journal from c. 1977 to present•Inflation is calculated using the Consumer Price Index, which is published by the U.S. Bureau of Labor Statistics•Corporate Bonds are represented by the Long-Term High-Grade Corporate Bond Index for the period 1969 to present•Large-Company Stocks are represented by the median of S&P 500 1988-2011•T-Bills data from NYU Stern based on raw data from the Federal Reserve database St. Louis (FRED)•CD’s data from Certificates of Deposit Index (CODI) 2011 year end•Life settlements data from Carlisle Investment Group



Evolution of the Life Settlements Market

¾Trend has been positive with slight drop after the beginning of the recession.¾Post 2008 a tertiary market for life settlements developed.¾Current size of the tertiary market has reached the secondary market

Growth of US Life Settlements Market – ($ Billions)

Future Outlook

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Tertiary

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Future OutlookExpected Rates of Return

¾Market Rates have been in a decreasing trend during the last 24 months.¾Market is still far from historical low rates.¾This represents an opportunity of life settlement investors.

Life Settlement’s Market Rates – (IRR)

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2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Low

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Future Outlook for the Market

¾After 2008 market rates increase to near historical highs, since they are decreasing¾The tertiary market has been increasing and becoming stable, providing liquidity¾Continued entry by investors will drive market rates to historical lows.¾More interest in alternative investments.

Worldwide Investment Volume

Future Outlook

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Long Term Growth Fund StrategyThe Long Term Growth Fund’s investment strategy is to purchase carefully selected life insurance policiesthat are beyond the contestability period. The Fund seeks to build a large diversified portfolio acrossnumerous sectors, including but not limited to carrier concentration, expected maturities, gender, age,impairment, geography and face value. In order to properly implement a buy and hold strategy, the fundseeks to isolate mortality risk and build a large sample size. The fund employs a mark to market valuationmethodology to facilitate tertiary transactions. The Fund employs detailed actuarial and financial analysisto ensure that policies purchased are accounted for longevity risk as well as other variables of theactuarial profile.

Strategy

Uncorrelated Returns, Mortality Driven

Low Downside Risk

Low Volatility & Capital Preservation

Few assets truly have low correlation in adverse conditions. The primary risk is experienced mortality which is unaffected by changes in the economy.

Extreme scenarios, or ‘tail risk’ in life settlements has minimal downside impact compared to other asset classes.

A diversified portfolio with a large number of insured lives will experience limited volatility.



Asset Acquisition ProcessThe life settlement process canbe divided into four stages:

A. Sourcing: Acquiring the actual life settlement assets.

B. Underwriting: A processto determine the mortality andother essential qualificationprocedures.

C. Pricing: Using quantitativetools to determine value of aParticular life settlement asset.

D. Closing: The process to acquire and maintain a life settlement asset.

A.

B.C.

D.

Transaction

LISA Association graphic.



Return ProfileThe chart represents the IRR of an investment with the variable being the time taken to collect thedeath benefit. An attractive characteristic of life settlements is the ‘extreme’ events or ‘tail risk’result in minimal downside compared to other asset classes. The Y-Axis also represents theprobability of survival for an individual with a median life expectancy of 75 Months.

Return Profile

0%10%20%30%40%50%60%70%80%90%

100%

25 35 45 55 65 75 85 95 105 115 125 135 145 155 165 175Month From Valuation Date

IRR Inforce Lives

Median Life Expectancy of 75 Months & Projected IRR of 15%

Analysis based on one individual policy..



ValuationMark to Market Valuation



Investment Risk Overview

¾Change in Market Rates

¾Concentration

¾Mortality

¾Liquidity and Reinvestment

¾Insurance Carrier

¾Strategy

Benefits & Risk



Change in Market RatesBenefits & Risk

¾Expected long term performance is based on market rates and it is important capital isredeployed at the best possible yields. The interim performance of the fund will change withcurrent market rates.¾All policies are unique and certain risk characteristics may or may not be compensated for inprice by all buyers. This leaves a window of opportunity in the market to generate profits.

Concentration Risk¾Geography, Age, Gender, Impairments, insurers, can all be diversified.¾A diversified portfolio will experience limited volatility and high cash flow predictability.



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Life Expectancy

Loss at 130% LE

Life expectancy providers assess mortality relative to a standard life.For example a standard life has a mortality factor of 100%. If the life isimpaired they may add an additional 50% mortality factor and decreasethe median life expectancy. The higher the sensitivity to a change inexpectation or experience, the greater the volatility, and therefore ahigher required yield.

The above chart is the results of a stress analysis on a portfolio. TheY-axis represents the change in value for a 30% extension in medianmortality assumption. It is very apparent that there are vastdifferences in risk profiles. We believe this is a risk that is oftenmispriced by the market and allows us to add value to our investorsby taking advantage of inefficiencies.

Longevity Risk Quantified Stress Testing Mortality Assumptions

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Mortality Factor

Value relative to Mortality Factor

Benefits & RiskMortality Risk



Benefits & RiskMortality Risk contd.¾Actual mortality against expected mortality, which can be reduced through building a portfoliowith a large amount of lives.¾Medical underwriters may systematically be too aggressive on assumptions, which can bereduced by using more than one provider and limiting the variation in expectations.¾Mortality risk is uncorrelated to business cycles.¾Extreme scenarios for longevity result in limited downside

Liquidity Risk.¾Liquidity risk is the risk that the Fund may not be able to settle or meet its obligations on time.The Fund is exposed to monthly and annual cash redemptions of units at specified amounts.¾The Fund utilizes mark-to-market valuation systems that allows it to resell policies in thetertiary market to increase its liquidity profile.¾Our collective experience in both buying and selling policies allows us to meet drastic liquidityneeds in an orderly fashion if necessary.



Insurance Carrier RiskX Insurance carrier risk is rather limited, even in the current environment.X Up to $500k guaranteed by state funds.X Books of policies are generally sold in the event of an insurance company liquidating.X Life policies have seniority against any other creditors

Diminished Capital Base

Bankruptcy/ Receivership

X Raising CapitalX Government Lending

X Restructuring / Asset Sale / Liability ReductionX Rival Firms take over existing blocks of policies

Seniority/ Insolvency

X Insurance contract has seniority over all forms on a bankruptcy after bankruptcy related fees and expenses

Guarantee X Up to 500k guarantee depending by state

Investment Manger Due Diligence and Ongoing Monitoring

XWeed out high risk carriers through credit risk underwritingX Diversity among carriersXMinimum ‘A’ Rating by S&PX Case Studies:

yExecutive Life Insurancey Mutual Benefit Life Insurancey New England Mutual Life Insurancey Kentucky Central Life Insurance

Risk Risk Mitigation or potential outcome

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Benefits & Risk



The primary risk in the fund is mortality. This is followed by the ability to quickly redeploy cash inflows at attractive rates, ormarket rate movements. The fund must maintain an adequate cash reserve for premium payments, which creates minimalinterest on investment for the fund. An optimal reserve amount is determined by stressing mortality assumptions as cashinflows relative to premiums that will be paid. Mark to Market Valuation methodology allows the fund to resell policies ifnecedssary. Diversification and the law of large numbers will reduce the volatility of the returns of the fund.

Policies are purchased Portfolio

Performance Drivers

Risks

Risk Mitigation

X Access to productX Policy selection and underwritingX Market yields

X Mortality experiencedX Cash returnX DiversityX Reinvestment rates

X Portfolio Count

X Capacity and execution X Mortality experienced compared to expectedX Significant advances in medical fields

X LiquidityX Changes in legal environment

X Access to providersX Access to sellers of portfoliosX Strict underwriting

X DiversificationX Efficient management of portfolio and cashX Robust analysis of carriers

X Credit monitoring of insurance carriers

Strategy

Strategy Specific Risks Benefits & Risk



Product Category Open-Ended Fund

ISIN LU0412489550

Currency Base USD

Management Style Active

Invest Period Open Ended

Manager Fee 2.00%

Incentive Fee 20% with 8% hurdle

Lock-up period N/A

Liquidity Quarterly with 90 day notice

NAV Monthly

Minimum Investment USD $250,000

Fund FactsLong Term Growth Fund



Service Providers

Fund StructureLuxembourg Life Fund9, Rue Sainte Zithe, 4th FloorL-2763 Luxembourg

Custodian BankCaceis Bank Luxembourg5, Allée SchefferL-2520 Luxembourg

Central AdministrationCaceis Investor Services5, Allée SchefferL-2520 Luxembourg

Valuation AgentLewis & EllisP.O. Box 851857Richardson, TX 75085-1857

Investment ManagerCarlisle Management Company SCA9 rue Sainte Zithe, 4th FloorL-2763 Luxembourg

Legal AdvisorRutsaert Legal14, rue de StrassenL-2555 Luxembourg

AuditorKPMG Luxembourg9 Allée SchefferL-2520 Luxembourg

Tax AdvisorBaker & McKenzie10 - 12 Boulevard RooseveltL-2450 Luxembourg



Jose Garcia is CEO of Carlisle Management Company SCA a Luxembourgbased fund management firm focused on the United States secondary lifeinsurance market known as life settlements. As its Chief Executive, Mr.Garcia is responsible for the companies overall business and investmentstrategy. Carlisle specializes in alternative asset strategy consulting andlife settlement fund development. Mr. Garcia has a ten year track recordof success across several sectors of the Life Settlement industry, extendingto industry brokers, life settlement providers, to fund management, fundstructuring, and investment marketing. During his tenure at a leading lifesettlement fund, Jose Garcia has led and overseen the purchase of morethan $3 billion in life settlements while raising more than $1 Billion incapital. Mr. Garcia graduated with honors from Old Dominion Universitywith degrees in Finance and Economics. He holds a Masters of BusinessAdministration from George Mason University.

Our TeamJose Garcia – Chief Executive Officer



As Chief Operating Officer of Carlisle Management Company SCA, Mr. Molis responsible for overseeing all structuring, legal and regulatory operatingactivities. Before joining the Carlisle Group, Mr. Mol was employed by theEquity Trust Group for thirteen years and spent the first two years workingin the Netherlands and the last eleven years in Curacao where he was theDirector of Operations. As the Director of Operations he was responsiblefor the day-to-day management of the Curacao office and leading a teamof 40 trust professionals. Furthermore he was involved with themanagement of several regulated mutual funds with assets totaling morethan $ 1.5 billion. Mr. Mol has extensive experience in the fiduciaryservices industry advising both corporate and private clients, and handlingcomplex accounting issues. Mr. Mol has knowledge of life settlementinvestment vehicles as well as the institutional investment environment.Mr. Mol has a Bachelors in Accounting and has a Masters in BusinessAdministration from Henley Business School/University of Reading, UnitedKingdom.

Our TeamTim Mol – Chief Operating Officer



As Chief Financial Officer for the Carlisle Management Company SCA,Victor Heggelman oversees all internal and external financial operationsand investment reporting. Prior to joining the Carlisle, Mr. Heggelman wassenior controller for Morgan Stanley where he oversaw financial and taxmatters as well as corporate compliance for a portfolio of companieswithin Morgan Stanley’s real estate funds. Previously, as Audit Managerfor KPMG, he audited and advised numerous life settlement investmentvehicles on accounting policies and valuation. Mr. Heggelman also workedclosely with funds and fund managers in Geneva, London and New Yorkon financial audits and valuation issue. He also assisted various lifesettlement funds with valuation methodology of their life settlementinvestments. Mr. Heggelman graduated from Jacksonville University withdegrees in Accounting and Finance and is an active member of the FloridaInstitute of Certified Public Accountants since 2001.

Our TeamVictor Heggelman – Chief Financial Officer



Mr. Xavier Deu serves as Carlisle’s Chief Marketing Officer and isresponsible for overseeing all business development projects. Prior tojoining Carlisle, Mr. Deu created Grupo Misame, a Spanish firm thatdeveloped a new approach to allow the dual ownership of residential realstate by families and investors, and allow for securitization of suchmortgage related product. Under Grupo Misame, developed severalconsulting projects among them for the Government of Andorra and theGovernment of Catalonia in Spain. Prior to Grupo Misame developedseveral consulting tasks, among them as Consultant for the HomebuildersAssociation of Andorra, the Ministry of Economics in Andorra, in dedevelopment and implementation of future economic laws. In the US,worked at The Riskmetrics Group, spin-off of J.P. Morgan, in the sales &Marketing department. Before joining Riskmetrics worked as a trader forseveral years and before developed several tasks on distribution forfinancial products for several firms in the US. He holds a degree inEconomics from the University Autonomous of Barcelona and a Masters inInternational Finance and Economics from Brandeis University.

Our TeamXavier Deu – Chief Marketing Officer



Carlisle Management Company, SCA

9, Rue Sainte Zithe4th Floor

L-2763 Luxembourg

This presentation is intended to be for information purposes only and it is not intended as promotional material in any respect. Reliance should not be placed on the views andinformation in these presentations when making individual investment and/or strategic decisions.

A fund’s investment objectives, risks, charges and expenses should be considered carefully before investing. This document contains information in summary form only and itsaccuracy or completeness cannot be guaranteed. No liability is accepted for any loss of whatsoever nature arising from the useof this information. Application for units in this fund may only be made on the basis of a prospectus relating to the fund and this document may only be distributed to thoseeligible to receive that prospectus. The distribution of this document may be restricted in certain jurisdictions and it is the responsibility of any person or persons in possession ofthis document to inform themselves of, and to observe, all applicable laws and regulations of any relevant jurisdictions. The prospectus contains this and other importantinformation about the Funds. To obtain a prospectus free of charge, call Carlisle Management Company’s registered office in Luxembourg, or contact us by sending an email [email protected] or by visiting our Web site at www.cmclux.com . Please read the prospectus carefully before investing or sending money.

Source: Carlisle Management Company (SCA).

Long Term Growth Fund

Bloomberg Ticker PENLIFA LX

ISIN Code LU0412489550

mailto:[email protected]

http://www.cmclux.com/

Documents

LTG Fund Presentation 2015