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.
Your trusted partner at every stage of your fund’s lifecycle.
Lockton’s Private Equity team provides made-to-measure, reliable risk transfer and insurance solutions for businesses in the private equity sector. Our team is made up of 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 are driven by your firm’s needs and strategic direction, not by the renewal cycle.
Our industry leading offering:
Exceptional service
Lockton has a client retention rate of 98%, thanks to our exceptional standards of service and our commitment to meeting the changing needs of our clients.
Efficient claims
We understand the importance of a fast and proficient claims service and have our 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.
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Private Equity Practice FAQs
What risks do the private equity sector face?
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
What is Private Equity Insurance?
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.
What types of insurance should private equity firms be considering?
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
Why is it important to consider an insurance solution that covers the investment life cycle?
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.
What are the major differences between Private Equity and Venture Capital insurance?
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.
What is portfolio company insurance?
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.
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