Private Equity / Venture Capital

Insurance Products that Help Secure the Deal

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Private Equity professionals undertake the inherently difficult task of growing other people’s wealth by buying and selling businesses. One critical “make or break” aspect of this investment strategy is effectively evaluating and insuring the risks that face these portfolio companies. Private Equity professionals cannot afford to fail in this endeavor. Improperly insured, underinsured or uninsured losses may adversely impact, or even destroy a portfolio company’s profitability and returns.

Owens Group has significant experience helping Private Equity clients with all aspects of the acquisition process: from due diligence through a final sale. Lead by an experienced, former Private Equity attorney, Owens Group is uniquely qualified to help clients understand and evaluate risks; and to strategically manage those risks. Owens Group’s findings and insight removes a great deal of uncertainty, positively impacting transactions made by Private Equity firms.

In addition, Owens Group can help a Private Equity firm craft insurance solutions to protect them and their returns. Owens Group uses insurance in innovative ways to create value and bolster returns for our Private Equity clients.

Policies and services that regularly come into play during the course of a Private Equity transaction are:

  • Fund Liability
  • Due Diligence
  • Representations and Warranties Liability
  • Specific Contingency
  • Tax Indemnification
  • Litigation Buyout
  • Environmental
  • Personal Directorship Liability
  • Portfolio Company Programs

The nature of the Private Equity industry means that PE professionals are regularly engaged in evaluating and designing insurance programs for a variety of portfolio companies; but that doesn’t mean that they need to reinvent the wheel with each transaction. Insurance programs can be designed to allow a fund to leverage the collective buying power of its portfolio to benefit the company, the PE firms and its limited partners. The resulting programs can eliminate the potential for human error, and often produce improved coverage terms, reduced premiums, and a more streamlined process.

Examples of policies where this may be applied, includes:

  • Directors & Officers Liability
  • Employment Practices Liability
  • Property
  • General Liability
  • Excess Liability

Owens Group provides expertise in tailoring policies for a broad range of industries, and can identify the best fit for your companies — for both focused and diverse portfolios.