Private Placement

High net worth clients use Private Placement Life Insurance (PPLI) and Variable Annuities (PPVA) to defer or eliminate income tax on the growth of tax-inefficient investments.

PPLI and PPVA offer access to Hedge Funds, Fund of Funds, MLP's and Mutual Fund investments in a tax-efficient structure. Features of these strategies include:

  • Optimized after-tax investment returns
  • Elimination of K-1's from underlying investment issuers
  • Enhanced creditor protection
  • Institutional pricing & transparent fee structures
  • No surrender charges

If designed properly, a Private Placement Life Insurance policy may provide tax-free access to one's investment gains within the account while eliminating the drag of income and capital gains taxes during the insured's lifetime.

Endowments, foundations and Sovereign Wealth Funds may use Group Variable Annuities (GVA) as on-shore blockers for UBTI, ECI and FIRPTA.