By Nicholas Elliott
Private equity deal activity may be lagging in the broader mergers & acquisitions boom, but private investors are ahead of the game when it comes to taking out insurance on deals.
In a report released last week, Marsh said there has been "dramatic growth" in transactional risk insurance this year in the U.S. market as well as worldwide growth overall.
Karen Beldy Torborg, global leader of the company's Private Equity and M&A Services practice, was quoted saying that insurance is being used to complete deals "and we don't see this trend subsiding any time soon." Acquisitions involve risks of various kinds, but insurance is a way of reducing those risks and bringing both sides to a final agreement.
Marsh said private equity firms are the heaviest users of this type of insurance, a trend backed by a panel of brokers and insurance experts convened by risk information provider Advisen on Thursday.
They said demand for such products is dominated by "mid-market" firms doing deals as small as $20 million, with the cost of insurance sometimes making it prohibitive for larger M&A deals and corporate acquirers often preferring to "self-insure" or take on the risks for themselves.
But they cautioned that buyers can find underwriters insisting on exclusions from policies where due diligence on the target isn't seen as sufficiently robust.
Such exclusions are made for one of two reasons, said Jeff Rubocki, a senior managing director at insurance brokerage firm Krauter & Co. and panel participant. One reason is a lack of information. The other is the underwriter doesn't want to take on a known risk, "and there's nothing you can do about that," said Mr. Rubocki.More →
We are pleased to announce that Krauter & Company has earned a spot as one of Inc. Magazine’s 5000 fastest-growing private companies in America.
In its 33rd annual list, Inc. Magazine provides year-over-year insight into the American economy by tracking the expansion of the fastest-growing private companies in the United States—and the entrepreneurial spirit driving them. There are nearly 7 million private companies in America, and all of them aspire to be on the Inc. 5000 list.
It is accredited to our talented professionals, along with our commitment to our clients and our partners, which has allowed us to achieve this great honor.
About the Inc. 5000 List
The Inc. 5000 winners were selected among thousands of nominated privately held American companies. Distinguished previous winners include Intuit, Zappos, Under Armour, Microsoft, Jamba Juice, Timberland, ClifBar, Patagonia, Oracle and Zipcar.
Inclusion on the list was determined by measuring revenue growth from 2010 to 2013. Additionally, companies chosen had to be U.S.-based, privately held, for profit, and independent-not subsidiaries or divisions of other companies-as of December 31, 2013.More →
New Professional Association for Private Equity Professionals Launches
NEW YORK, Jul 24, 2014 (BUSINESS WIRE) -- The Private Equity Principal Group, PEPG, is a professional association designed for individuals at the principal and VP levels within private equity firms in the US. The association was developed as a resource to provide members with the skills and resources necessary to take the next step in their careers.
“We began to see that there was not enough training and education for young professionals in the private equity space. PEPG’s goal is help provide the education, training, and connections necessary for principals’ path to partnership,” says Neil C. Krauter, Chairman of the PEPG Board of Directors.
PEPG provides valuable networking opportunities, educational seminars focusing on real industry issues, and access to a progressive knowledge sharing platform. PEPG members have access to a wealth of invaluable information via PEPG’s digital discussion platform. The forum allows members to create a profile, seek exclusive peer-to-peer advice, search a variety of industry topics, review job postings, and participate in ongoing discussions. The PEPG forum is only open to members and requires a password to gain access. There will also be an invitation only level of membership that grants access to special events and sponsors.
“With the launch of PEPG, we have an opportunity to strengthen the private equity industry and provide networking and growth opportunities for principals as they prepare to become General Partners. I am honored to serve on the PEPG board and participate in this much needed organization,” said Ben Geiger, General Partner at Freeman Spogli & Co.
Membership is open to principal, VP and other post MBA level executives at private equity funds. There is no cost to join, however an application process is required; applications can be submitted on the PEPG website.
PEPG is a premiere association for investing professionals at private equity firms in the US. The association offers education, idea sharing and networking events at which members can develop their industry skills and knowledge, share experiences, best practices and develop relationships. PEPG is designed to provide principals with the skills and tools needed in order to advance to the partnership level.
PEPG provides access to a private online discussion platform for all members of the organization and advisory boards. Members have the ability to ask questions and post responses, anonymously or publicly, all of which are archived and available for future reference.
For additional information visit www.PrivateEquityPrincipalGroup.com.
SOURCE: The Private Equity Principal Group
Copyright Business Wire 2014
Congratulations, you have been selected by the Governing Council to serve on the 2014 ISCEBS Professional Development Committee. This email is to confirm your appointment to serve a one-year term on the 2014 Professional Development Committee. The date, location and time of the meeting are listed to the right. A dinner is planned for around 6:30 p.m. on the Thursday prior to the committee meeting.
You should make your own airline/travel arrangements to attend the meeting. A hotel reservation will be made for you, guaranteed for late arrival, for the night before the meeting. You will be reimbursed for your travel, hotel and miscellaneous expenses, in accordance with this reimbursement policy.
Detailed information on the meeting will be forwarded to you prior to the meeting. For your reference, please see the committee function description, minutes from last year's meeting as well as a roster of the 2014 committee members listed to the right.
As discussed, your appointment to this committee is contingent on your ability to attend the Professional Development Committee meeting. If your schedule has changed and you find that you are not able to attend, please email or call me at email@example.com or 262-373-7683.
Society committees play an important role in formulating ideas and strategies to insure the continued growth and prosperity of the Society. We look forward to working with you on the Professional Development Committee.
Happiest of holidays and a great new year to you and yours!
Jennifer Mathe, GBA
Manager Member Services