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 Insurance

Get in touch (opens a new window)

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.

424x480xPEIxaccordian

Our industry leading offering:

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.

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.

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

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.

News and Insights

IT outages such as the one involving CrowdStrike are likely to occur more often in the future. Businesses can prepare for such events by quantifying their cyber risk, creating plans that minimize the downtime of critical functions, and securing effective cyber insurance coverage.Protecting your business from IT outages

Protecting your business from IT outages

article
IT outages such as the one involving CrowdStrike are likely to occur more often in the future. Businesses can prepare for such events by quantifying their cyber risk, creating plans that the downtime of critical functions, and securing effective cyber insuran ...
Read moreProtecting your business from IT outages

Insuring your classic car

Exceptional cars require exceptional cover. At Lockton, we’re every bit as passionate about looking after your classic cars as you are to own it, and drive it. That’s why we’ve created a market-leading policy, backed by our exceptional client service. Exceptional cars require exceptional cover. At Lockton, we’re every bit as passionate about looking after your classic cars as you are to own it, and drive it. That’s why we’ve created a market-leading policy, backed by our exceptional client service.

Microsoft/CrowdStrike IT Outage

Microsoft/CrowdStrike IT OutageMicrosoft/CrowdStrike IT Outage

The impact of the Ariane 6 launch on the space market

On 9 July, Europe’s new heavy-lift rocket, Ariane 6, made a successful maiden flight from the French Guiana spaceport. This is great news for the international space industry – and the space insurance market.On 9 July, Europe’s new heavy-lift rocket, Ariane 6, made a successful maiden flight from the French Guiana spaceport. This is great news for the international space industry – and the space insurance market.
See all news and insights

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.

Let’s talk about your next deal...

Would you like to talk about how our team can work with your business? Use the contact form below and we will be in touch.

Talk to our team