LSAA Life Settlement Assets Plc

TIDMLSAA

RNS Number : 7164Q

Life Settlement Assets PLC

30 June 2022

LIFE SETTLEMENT ASSETS PLC (the "Company" or "LSA")

AGREEMENT OF REDUCED ACL PERFORMANCE FEE

30 June 2022

As referred to in the Company's annual results for the year ended 31 December 2021, LSA has been in discussions with Acheron Capital Limited ("ACL") regarding the re-negotiation of the performance fee payable to ACL, which is currently defined as an amount equal to 20% of the total distributions made by the Company over an agreed hurdle rate. Agreement has now been reached with ACL that once the current litigation process with one of the policy trustees has been resolved, which is expected to occur during 2022, the performance fee will be reduced from 20% as described above to 10% over the existing hurdle rate.

The resolution of the legal dispute is expected to be accompanied by a judicially approved sale of the policies in the relevant trustee portfolio. The completion of such a sale process, including LSA`s participation therein whether successful or not, would mark the end of LSA`s need to accumulate cash to purchase the relevant policies, so enabling LSA to resume further distributions to Shareholders. Assuming resolution of the dispute, following the first such distribution LSA has agreed to make a one-off payment to ACL of any accrued performance fee payable to ACL held by the Company in excess of $1m, based on the 2022 financial results and subject to the cash requirements of the business. As at 31 December 2021 the accrued performance fee stood at $2.8m. However, in acknowledgement of the significant work that ACL has had to perform with regard to engagement with the legal dispute over a long period, the Directors of LSA have agreed to make an immediate advance to ACL, subject to an agreed clawback mechanism, of $0.5m which will be credited against any amount to be paid under the above one-off payment arrangement, following the publication of the 2022 financial results.

For further information contact

Acheron Capital Limited (Investment Manager)

Jean-Michel Paul

020 7258 5990

Shore Capital (Financial Adviser and Broker)

Robert Finlay

020 7408 4090

ISCA Administration Services Limited

Company Secretary

Tel: 01392 487056

Notes to Editors

Life Settlement Assets PLC is a closed-ended investment trust company which invests in, and manages, portfolios of whole and fractional interests in life settlement policies issued by life insurance companies operating predominantly in the United States. The Company seeks to generate long-term returns for investors by investing in the life settlement market, through each of the separate Share Classes. The Company aims to manage its investment in portfolios of life settlement products so that the realised value of the policy maturities exceeds the aggregate cost of acquiring the policies, ongoing premiums, management fees and other operational costs.

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June 30, 2022 02:00 ET (06:00 GMT)

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