Private Placement Life Insurance (PPLI) is a fully transparent, flexible insurance structure used for investment, tax, and estate planning for high net worth individuals

What investment assets are best suited for PPLI?

PPLI structures are best suited for the most tax-inefficient asset classes which are subject to the highest tax rates.  A sample of asset classes which generate tax-inefficient income are illustrated below:

Private Debt Funds

  • Senior secured
  • Mezzanine
  • Unitranche
  • Specialty (e.g. Film financing)

Public Debt Funds

  • High-yield corporate
  • Emerging markets corporate / sovereign

Real Estate Funds

  • Private mortgages
  • Mortgage Investment Corporations (MICs)
  • REITs
  • Income-oriented private real estate

Hedge Funds

  • Various strategies (subject to short-term capital gains tax rates in the US or ordinary income tax rates in Canada)