Private Markets Liquidity Solutions
Overview of Aon’s Private Markets Liquidity Solutions (PMLS)
PMLS comprises a suite of insurance and advisory products designed to unlock and accelerate the return of capital in private transactions, where liquidity is typically limited. With exit timelines increasingly prolonged, private market participants are retooling the way they think about pathways to liquidity. Financial sponsors and investors are combining transaction structuring, fund-level financing, and a new generation of insurance solutions to unlock capital held in illiquid positions.
These solutions, such as secondaries, LP clawback and fund wind-down insurance, replace traditional seller indemnities and reserves with insurance-backed protection, enabling faster, cleaner exits and more efficient capital allocation. Thoughtfully deployed, these strategies don’t just protect value—they enhance the way cash flows are realized by clearing execution roadblocks and accelerating distributions.
How do these solutions enhance liquidity?
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Secondaries R&W Insurance
Aon’s secondaries insurance enables faster, cleaner exits by replacing seller indemnities with insurance-backed protection, broadly applying to both traditional LP trades and GP-led transactions. This allows financial sponsors to distribute proceeds quickly while improving new investors’ confidence in the deal, reducing friction and unlocking capital that might otherwise be delayed or sidelined.
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LP Clawback Insurance
Aon’s LP clawback insurance helps sellers achieve a truly clean exit by transferring potential clawback liabilities to insurers. This eliminates the need for indemnities and holdbacks, streamlining transactions and ensuring buyers and sellers can move capital more efficiently.
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Fund Wind-Down Insurance
With Aon’s fund wind-down solutions, fund managers can accelerate final distributions and close out funds without retaining reserves for potential residual risks. This not only facilitates earlier releases of capital to investors, but also greatly reduces the administrative burden of maintaining fund vehicles as going concerns to address potential liabilities.
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GP Stakes Insurance
Aon’s tailored GP stakes insurance facilitates minority interest transactions by providing recourse without extensive indemnity negotiations. This expedites deal execution, allowing sponsors and asset managers to monetize interests and enhance liquidity.
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Tax Insurance
Aon’s tax insurance solutions transfer material tax risks to insurers, helping parties overcome transaction obstacles, accelerate closings, and improve financing options. By providing certainty around tax exposures, Aon’s policies support faster capital deployment and greater liquidity in private markets.
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Contingent & Litigation Insurance
Aon’s contingent and litigation risk solutions unlock capital tied up by unresolved legal exposures, allowing businesses to accelerate M&A transactions, fund wind-downs, and balance sheet optimization. By transferring these risks to insurers, clients can distribute proceeds faster and reduce the need for reserves, enhancing liquidity and transaction certainty.
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Transaction Advisory Services
Aon’s Transaction Advisory Services deliver thorough diligence that is essential for managing contingent and litigation risks in M&A and private equity transactions. By uncovering potential legal exposures early and structuring targeted insurance solutions, Aon enables clients to release capital otherwise tied up in reserves, accelerate deal timelines, and achieve cleaner exits. This proactive approach transforms diligence from a procedural step into a strategic advantage—helping businesses unlock liquidity and move forward with confidence.
Why Choose Aon?
Aon is the leading insurance broker for M&A and other private markets transactions across all industries by the limits placed and number of policies written. Our Transaction Solutions team has deep experience and understanding of the complexities and nuances related to financial sponsor transactions, allowing us to provide solutions specifically tailored to the unique requirements of these transactions. The Aon team delivers a boutique service experience from seasoned former practicing M&A, private equity, tax and litigation attorneys and deal professionals who have the depth and experience within a leading global organization to address your deal’s financial uncertainty and unlock greater opportunities.
