Crown Alliance Capital (CACL), a senior life settlement company, has signed a memorandum of understanding (MoU) with American Medical Capital for non-exclusive sourcing of life insurance portfolios.

Besides setting forth a series of criteria required to be addressed for Crown to be interested in acquiring the policies sourced by AMC, the MoU also starts the process of reviewing the first $50m policy portfolio identified by AMC.

Valued at more than $100m, the total portfolio is expected to be purchased by CACL in separate $50m tranches, contingent on sufficient financing and due diligence verification.

Crown Alliance Capital president and CEO Lorraine Fusco said the closure of deal in stages has enabled the company to complete the due diligence and underwriting process more efficiently.

"Moving forward with this custom built portfolio with AMC is the next step in our plan to ensure the best and most stable return possible for the Company,'' Fusco added.

''The life expectancies and costs of the policies are expected to be well within our requirements."

The latest portfolio purchase brings the company closer to achieving its five year goal of having assets under management in senior life settlement policies of $1bn.

Founded in March 2010, CACL is a senior life settlement company focusing on polices that will render an internal rate of return of 14% or more.