Patriot Group Provides $45 Million Credit Facility to Peachtree Settlement Funding

DARIEN, Conn.–(BUSINESS WIRE)–The Patriot Group, LLC, an emerging leader in specialty finance solutions for businesses at all growth stages, today announced that it has provided a $45 million, three-year, senior secured credit facility to Peachtree Settlement Funding. Peachtree Settlement Funding is a specialty finance company that purchases and finances life settlements, life insurance premiums, structured settlements, lottery awards and a variety of other annuity streams. The credit facility developed by Patriot will provide financing for life insurance premium finance loans made by Peachtree.

Patriot has the experience and resources to provide flexible capital solutions to businesses of every type and size, even in challenging credit environments, said Charles A. Forbes, Jr., Managing Partner and President of Patriot’s Asset Funding Solutions division. We are very pleased to have the opportunity to work with Peachtree, an industry leader in the life insurance premium finance space.

The credit facility provided by Patriot will enable us to continue to grow Peachtree’s premium finance business into the next decade, said James Terlizzi, CEO of Peachtree Settlement Funding. We have known Patriot’s principals for over ten years and have enormous faith in their capabilities. We are heartened by the confidence they have demonstrated in Peachtree by choosing to work with us.

About The Patriot Group, LLC

Founded in 2002, The Patriot Group, LLC is a leading specialty finance, investment, and asset management company that provides funding solutions to clients across a wide variety of asset types. With its streamlined infrastructure, Patriot provides flexible, custom-tailored capital that benefits clients that are underserved by traditional financing sources. Patriot serves clients with a broad range of products across the capital structure, including senior and mezzanine financing, asset purchase facilities, repurchase financing, working capital loans and equity financing.

About Peachtree Settlement Funding

Peachtree Settlement Funding, a subsidiary of Peach Holdings, Inc., is a specialty factoring company that purchases high-quality deferred payment obligations. Through its group of affiliated companies, Peachtree caters to clients seeking to sell structured legal settlements, life settlements, annuity payments, lottery prize payments, sweepstakes awards and sports contract payments. In addition, Peachtree provides cash advances to people with pending personal injury claims. Peachtree has purchased over $4 billion of specialty receivables and continues to expand into new areas by bringing institutional financing and professionalism to bear on underserved markets.

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For more information about Life Insurance Premium Financing, call toll free 1-888-973-8377.

Doug Head, executive director of the Life Insurance Settlement Association, today criticized the findings of the National Association of Insurance Commissioners’ review of its model act.

“So we are asked to believe that the “investigation” was done, and properly done, based on a press release?”

Last week, the NAIC announced that an independent investigation by Lynn McCreary, a partner at Bryan Cave LLP, found that the adoption of the group’s Viatical Settlements Model Act was unbiased and not subject to undue influence. The rule, which addresses issues in sale of life insurance on the secondary market, would extend to five years, from two, the settlement contestability period for insurers.

The investigation arrived on the heels of accusations of conflicts of interest within the Kansas City, Mo. group. Last fall, consumer group representatives feared that Jim Poolman, a former North Dakota insurance commissioner, was getting campaign contributions from industry participants while he oversaw the development of the model act. Mr. Poolman is also the former chair of the NAIC’s life insurance and annuities group.

Mr. Head contested the findings and process of the NAIC’s investigation, saying that the group wouldn’t provide the findings of its report. “[Ms. McCreary] only had to see if the [development process] complied with the NAIC’s rules,” he added. “They went through the formality of approving a model, but whether there were other forces impinging on the outcome was never investigated.” Mr. Head also said that his group was never contacted during the investigation.

The NAIC would not provide its report to the press, saying that it was “an internal publication.”

“It’s a little like George Bush investigating Guantanamo and getting attorney general [Alberto] Gonzales to say that everything is okay,” Mr. Head said.

An NAIC spokewoman responded that the report is condfidential because members were intervened.

“Bryan Cave LLP is a leading national business and litigation firm. As a partner in the firm, Lynn McCreary brings a depth and breadth of experience and expertise to her position. We have every confidence in Bryan Cave, as well as in the integrity and unbiased approach that Ms. McCreary brought to this investigation,” said Cathy Weatherford, NAIC Executive Vice President and CEO, in a statement.

Source: Investment News

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