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Cash Flow or Liquidity Risk
Cash flow and liquidity challenges are particularly acute in certain industries, and this is not expected to change down the road.
Industry Overview
Financial Sponsors
Transforming Risk into Opportunity
Intensified macroeconomic headwinds have rippled through the markets and continue to create a new reality for financial sponsors that is challenging every stage of the investment lifecycle — from deal opportunities and financing to portfolio management and exit. To create value during economic uncertainty, financial sponsors must navigate evolving risks with agility, discipline and a broad perspective. By approaching fund structures and capital and asset management creatively, financial sponsors can effectively navigate increasing uncertainty to turn risk into opportunity.
Aon helps secure investments, maximize deal value and drive transaction success by solving wide-ranging issues facing financial sponsors throughout the deal lifecycle and across their portfolio companies by leveraging data, insurance-backed capital instruments and market leading consultative capabilities. We provide clients the unique ability to manage wide-ranging solutions effectively and efficiently with a single contact and source of execution.
Top 5 Current Risks
According to our latest Global Risk Management Survey, the biggest risks facing the Financial Sponsors industry include:
More Insights
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Article 10 mins
Why It’s Key to Conduct Cyber Due Diligence in Financial Services During Mergers and Acquisitions
A successful M&A strategy relies on due diligence across financial, legal, human capital, technology, cyber security and intellectual property risks. As cyber threats become more complex, robust cyber due diligence in private equity and acquisitions is increasingly necessary.
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Article 4 mins
Credit Solutions Market Overview
Overview of the current trade credit insurance market and outlook on trend developments.
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Article 3 mins
Better Decisions in Trade, Technology, Weather and Workforce
From global supply chain risks to climate insecurity, organizations face challenges and complexities on a scale rarely seen before.
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Article 3 mins
Risk Capital and Human Capital Perspectives
Risk Capital CEO Andy Marcell and Human Capital CEO Lambros Lambrou discuss how innovations in Risk Capital and Human Capital can help organizations boost resilience and navigate volatility.
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Article 12 mins
Top Risks Facing Financial Sponsors
Financial Sponsors respondents to our Global Risk Management Survey (GRMS) ranked cash flow or liquidity risk and capital availability as their two most critical risks.
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Article 8 mins
How Current IP Patent Litigation Trends are Changing Risk Exposures
As patent litigation continues to evolve worldwide, analyzing past trends can help support informed risk management decisions for the future.
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Article 6 mins
Artificial Intelligence and the Next Frontier for Financial Institutions
Artificial intelligence could help banks make better use of customer data and workforce capabilities, in addition to reducing financial fraud. However, financial institutions must be mindful of the risks of AI as well.
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Article 6 mins
Litigation and Contingent Risks: Unlocking the Value in M&A
Without the proper insurance, litigation and contingent risks can lock up capital and prevent a deal from closing.
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Article 6 mins
Protect and Grow: An Integrated Approach to Tackling Global Volatility
In today’s increasingly volatile global economy, business leaders are focusing on two key areas of decision-making: Risk Capital and Human Capital.
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Article 7 mins
COVID-19 has Permanently Changed the Way We Think About Wellbeing
Aon’s 2022–2023 Global Wellbeing Survey explores what employers around the world are doing to support the needs of today’s workforce.
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Article 6 mins
Insurance in Secondary Transactions
Increased use of secondary transactions in the private equity market has created an opportunity for Representation and Warranties insurance.
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Article 7 mins
ESG Data: How Businesses Can Use Data to Gain an Edge
To make the most out of their ESG data, companies can draw on different approaches to benchmarking and increase their attention to governance.
