Liquidity, Unlocked: How Insurance Capital is Powering Private Markets

Liquidity, Unlocked: How Insurance Capital is Powering Private Markets

Liquidity, Unlocked: How Insurance Capital is Powering Private Markets

Private market participants are facing longer exit timelines, prompting a shift toward creative transaction structuring, fund-level financing, and specialized insurance solutions to unlock capital from illiquid positions.

Key Solutions Offered by Aon:

  • Private Equity Secondaries Insurance

    Enables faster, cleaner exits by replacing seller indemnities with insurance-backed protection for LP trades and GP-led transactions.

  • Tax Insurance

    Shifts tax risks to insurers, helping overcome deal hurdles and accelerate closings.

  • GP Stakes Insurance

    Facilitates the acquisitions of positions in sponsors and asset managers by providing recourse and preserving alignment among deal parties.

  • Fund Wind-Down Insurance

    Allows funds to close out and release capital earlier to investors while maintaining protection for potential residual risks.

  • LP Clawback Insurance

    Transfers clawback liabilities to insurers, streamlining transactions and improves certainty of distributions.

  • Contingent & Litigation Risk Insurance

    Unlocks capital tied up by unresolved legal exposures, speeding up transactions and distributions.

  • Transaction Advisory Services

    Provides deep diligence to identify risks and structure robust insurance solutions.

What this means for decision-makers

  • Explore insurance-backed solutions to replace traditional indemnities and holdbacks, enabling quicker and cleaner exits.
  • Consider bespoke insurance solutions (secondaries, GP stakes, LP clawback, tax, wind-down, contingent risk) to unlock capital and reduce transaction friction.
  • Leverage transaction advisory and deep diligence expertise to identify risks early, structure effective solutions, and gain a strategic edge in dealmaking.
  • Accelerate capital deployment and optimize liquidity by using innovative risk transfer mechanisms.
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