Our story begins in the late nineties, when David Marshall, a partner at Atlas, was a Managing Director at Goldman Sachs. As a newly-public company, Goldman asked David to design a market-based nonqualified deferred compensation plan for its senior executives. As part of the project, he was asked to develop a solution for managing P&L-related risks.
The optimal solution would provide favorable accounting and tax treatment without tying up capital. David partnered with Cliff Eisler (then an external consultant and service provider) to design a strategy using dynamically-reweighted highly-correlated total return swaps and worked with Goldman management and Cleary Gottlieb to confirm favorable tax treatment for the program. They received two patents in support for this new strategy, and later established Atlas’s first subsidiary, Atlas Benefit Finance, to provide the solution to the broader marketplace. The solution, Atlas’s Total Return Swap Hedge, is utilized by many Fortune 500 companies today.
The next chapter of Atlas's history began in the early nineties, when Cliff was a Managing Director at JPMorgan. Banks were predominantly purchasing bank-owned life insurance (BOLI) policies that required them to be general creditors of life insurance companies for long periods of time, gave insurance companies the ability to set earnings rates at their discretion, and had opaque expenses. Cliff created Stable Value Separate Account BOLI to eliminate these issues, and has since developed and administered several stable value businesses that together have generated $50 billion in AUM. Atlas SV Partners designs, provides, and administers stable value wraps for BOLI and COLI products.
Our third subsidiary, JurisPrudent Deferral Solutions, was created to address risks in deferred compensation programs for law firms, referred to as attorney fee deferral programs. JurisPrudent continues to provide the most advanced solution for successful law firms today.