With GP-led secondaries setting records in 2024—and trendlines looking promising for 2025—secondary investors have increasingly turned to M&A-style insurance policies to facilitate their transactions. Because of the many benefits that reps and warranties insurance (“RWI”) offers, the product has quickly scaled alongside a robust GP-led market.
To help educate market participants on how and when to tap the RWI market, the following article, written in conjunction with insurance broker Atlantic Global Risk LLC, outlines what secondary investors and sponsors should know, including:
Key takeaways include:
- What to expect regarding limits, retentions, and premiums
- A hypothetical comparison of policy limits and coverage levels
- Typical timelines for marketing and underwriting stages
