VCM Global Asset Management moves deeper into alternative investments strategy, including medical receivables
20 October, 2021
October 20th, 2021 – US institutional investor and private equity fund VCM Global Asset Management is eyeing new alternative investments strategies including medical lien receivables just months after buying a significant stake in London-based fintech MillTechFX.
VCM, which is raising USD100 million in medical lien receivable assets, is also divesting a small part of its real estate portfolio in the US and Europe to free up cash and diversify through alternative strategies. “We have a solid track record in real estate investments and continue to look at potential acquisitions but we are now also looking at additional alternative investment strategies, including medical receivables and investments in early stage companies that have potential to disrupt their respective industries,” says Tom Vukota, CEO at VCM Global Asset Management.
Receivables are being acquired and managed by subsidiary VCM Medical Lien Asset Management (“VCM MLAM”), an exclusive joint venture between VCM Global Asset Management, Ltd. and MLA Investment Group, LLC (“MLAI”).
“Lien secured medical receivables provide strong returns and exhibit low volatility and minimal credit risk. The interesting thing is that they are cyclical resistant investments, which are not correlated to the general market and are thus more resilient in a market downturn or economically challenged environment,” Tom Vukota adds.
The move into medical lien assets represents a natural progression for VCM, whose $1 billion AUM includes medical office properties and a Life Settlements Fund.
“With MLA, we have a unique opportunity to diversify our portfolio while we further develop our presence in the health insurance sector. On top of this, MLAI has a world of expertise in medial receivables, strengthening our acquisition strategy and execution on receivable recoveries,” says Dan Koehler, Chief Operating Officer at VCM Global Asset Management. “Such assets are typically short in duration and high yield in nature with expected return of invested capital within six quarters,” he adds.
The alternative investments focus comes after VCM purchased earlier this year a USD30 million stake in MillTechFX. The fintech targets a USD120 trillion a year segment of the global FX market by offering customers such as asset managers, institutions and corporates considerably lower FX transaction costs through its AI-based platform. The Portfolio
Manager & Managing Director at VCM Santiago Tello says: “My recent visit to MillTech FX HQ in London reinforced the view we had over a year ago that corporate treasurers, fund managers and other institutional investors are demanding more transparency in the FX marketplace and the independent multibank FX marketplace that MillTech offers is the right solution.”
VCM began acquiring and managing portfolios of low-correlation assets in 2015 leading to the formation of VCM’s Life Settlement Funds. The Life Settlement Funds were formed with the purpose of acquiring life insurance policies, servicing the premiums, and monitoring the associated lives of those insured and claiming related benefits proceeds. Consequently, the VCM MLA Investment Fund is yet another niche strategy within the sector.
Seeking to expand and diversify into its low correlation strategy, VCM identified MLA as a key partner thanks to its decade-long experience in developing leading strategies and systems for receivables management, including proprietary analytics and infrastructure for portfolio management and collections. In addition, the team brings a pipeline of actionable acquisitions through established relationships with underwritten medical providers that generate quality MLA.
About VCM Global Asset Management
Founded in 2010 and focused on alternative investments through real estate private equity transactions and public market opportunities, VCM and its affiliated companies manage over USD $1.0 billion on behalf of institutions, family offices, and high-net-worth individuals. VCM diverse range of investment strategies encompass real estate, private equity, life insurance policies and public market alternatives. Focused on prioritizing commonsense investing and preservation of capital across all their strategies.
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