The Lockton Private Equity Practice Group (PEP) is our Partner-led initiative, which brings the best of our global expertise across all coverage lines into one solution, whether it be for your corporate lines, consultancy needs, personal protection or to protect your portfolio assets the Lockton Private Equity Practice Insurance team will help.

PRODUCTS AND SERVICES

Private Equity Practice

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Your trusted partner at every stage of your fund’s lifecycle

Lockton’s Private Equity Practice (PEP) provides made-to-measure, reliable risk transfer and insurance solutions for businesses in the private equity sector. Our team is made up of recognised industry leaders with decades of experience in the private equity insurance sector, making us uniquely placed to meet your specific needs.

We bring together lawyers, ex-underwriters and risk managers, who each have an in-depth understanding of the unique risks facing firms in your industry. Our engagement across each Lockton business unit is seamless; we work as one team, taking a holistic approach to assessing your particular risks.

Lockton’s flat structure means that our clients benefit from a ‘hands-on’ approach from our most senior people. We’re driven by your firm’s needs and strategic direction, not by the renewal cycle. Both our client and Associate retention rate is the highest in the industry, which translates to service continuity and a lasting understanding of your business.

What we bring to your business

  • Exceptional service

Lockton has a client retention rate of 98%, thanks to our exceptional standards of service and our commitment to meeting your changing needs

  • Full transparency

We provide open and honest advice and are fully transparent about fees, so you know exactly what you are paying for at every stage

  • Efficient claims

We understand the importance of a fast and proficient claims service and haveour own in-house dedicated claims team for both real estate and construction claims, to assist every step of the way

  • Value assured

We negotiate the broadest terms at the most competitive rates – our policy wording goes beyond those of non-specialist brokers

  • The right solution

Whether you are looking for tailored cover or risk transfer solutions, we bring the same level of scrutiny, knowledge and enthusiasm to every client, making sure we understand every aspect of your needs and aspirations

Our Services

Lockton Denmark Contacts

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Claus Trentel

Partner
Claus.Trentel@lockton.com
+45 3054 7626

General Inquiries

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info@dk.lockton.com

Private Equity Practice FAQs

Risks encountered in the private equity sector are extremely broad and are constantly evolving. Risks arise across the entire investment lifecycle, and can include:

  • Operational and compliance risk

  • Cyber, technology and intellectual property risk

  • Transactional risk during the investment/divestment process

  • Key person risk

  • Environmental, social and governance (ESG) risks and associated pressure from investors

  • Geopolitical risks

Private Equity (PE) Insurance is a great way to compliment other long-term risk mitigation strategies. PE firms should look to optimise this approach, and do their due diligence to contain costs, preserve liquidity, and protect their investment portfolio. At Lockton, we tailor your insurance program to best suit your firm’s aims and objectives, as private equity insurance is not a ‘one size fits all’ solution. We work in partnership with our clients to understand their exposures, so we can engineer a programme that mitigates risk and provides solutions with the right level of protection for both the GP and their portfolio companies.

Private equity firms should be considering the following types of insurances among others:

  • Professional Indemnity (PI)

  • Directors and Officers Liability (D&O)

  • Cyber Liability

  • Theft/Crime

  • Insurance Due Diligence

  • Warranties and Indemnity (W&I)

  • Contingent Liability

  • Employee Benefits

  • Portfolio company solutions

A comprehensive insurance programme can be a key factor for private equity firms in achieving financial success. This includes everything from fundraising, origination & acquisition, to portfolio management and divestiture strategy.

For example:

Strategy and fund raising: Comprehensive GP liability coverage can protect the funds and investment professionals from inherent risks.

Deal sourcing & investment: Insurance due diligence can identify issues early and transactional risk insurance can facilitate deals.

Portfolio management and value creation: Sector specific expertise can ensure that investments remain protected, and that the private equity firm is appropriately insulated.

Divestiture strategy: Vendor due diligence can uncover potential risks, transactional risk insurance can expediate and simplify a sale, and contingency solutions can remove liquidity issues.

The high-level requirements for a venture capital firm are the same to that of a private equity firm. However, there are some fundamental differences given the nature of the investments venture capital (VC) firms make. VC firms will often make minority investments and forgo board positions which reduce the decision-making capacity around risk management at the portfolio level. This can often be seen as a reduced risk however a comprehensive insurance programme at VC firm level is important to ensure the fund is protected.

Portfolio company insurance covers a wide range of policies which will vary from sector to sector. Lockton’s global capability and sector specific expertise are well placed to offer expert insurance and risk management advice whatever the portfolio company focuses on.

News and Insights

We are pleased to share the Lockton H1 2024 London Insurance Market Update, intended to keep you abreast with underwriting and risk trends from a London Market perspective. This issue contains insights from 20 business segments across Lockton, along with a spotlight feature on our MENA operations and trends pertinent to that market. Our largest update to date, it is a testament to our continued growth as a business. London Market Insurance Update H1 2024

The risk evolution of automated storage systems

Automated storage and retrieval systems (ASRS’s) are being used in warehouses more frequently to improve efficiency. The technology has the potential to reduce human error, optimise space utilisation, and enable faster order fulfilment. However, claims resulting from system failures and insufficient risk mitigation measures are on the rise. Businesses need to identify, monitor, and protect against potential hazards, particularly those related to fire, not least to be able to secure appropriate insurance cover.Automated storage and retrieval systems (ASRS’s) are being used in warehouses more frequently to improve efficiency. The technology has the potential to reduce human error, optimise space utilisation, and enable faster order fulfilment. However, claims resulting from system failures and insufficient risk mitigation measures are on the rise. Businesses need to identify, monitor, and protect against potential hazards, particularly those related to fire, not least to be able to secure appropriate insurance cover.

Addressing the growing risk of blades detaching from wind turbines

Wind turbines are an increasingly popular form of energy generation. Although dependent on size, their ability to potentially power a home for two days with a single rotation has contributed to a 9% YoY growth of total installed wind capacity to 906 GW in 2022, according to the Global Wind Energy Council. However, a recent incident in the the UK where a wind turbine shed blades highlights the changing weather conditions that designers have to  address, when looking at the extremes of weather that may be seen in operation.  Wind turbines are an increasingly popular form of energy generation. Although dependent on size, their ability to potentially power a home for two days with a single rotation has contributed to a 9% YoY growth of total installed wind capacity to 906 GW in 2022, according to the Global Wind Energy Council. However, a recent incident in the the UK where a wind turbine shed blades highlights the changing weather conditions that designers have to  address, when looking at the extremes of weather that may be seen in operation.

Professional services firms: how to navigate cyber risks

In an era dominated by digital transformation, the professional services sector is perched on the precipice of cyber risk. As firms increasingly digitise their operations, the allure of efficiency and convenience is accompanied by a lurking threat: the ever-evolving realm of cyber threats.In an era dominated by digital transformation, the professional services sector is perched on the precipice of cyber risk. As firms increasingly digitise their operations, the allure of efficiency and convenience is accompanied by a lurking threat: the ever-evolving realm of cyber threats.
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