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Report

The advantages of representations and warranties insurance for GP-led secondaries

By Daniel Waxman | May 13, 2025

Enhance your GP-led secondary transactions with robust risk management and cost-effective protection using RWI.
Mergers and Acquisitions
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Key takeaways

  • Surge in GP-led secondary transactions: The global GP-led secondary market saw a historic transaction volume of $75 billion in 2024, fueled by the increasing participation of traditional buyout private equity sponsors and the abundance of available capital.
  • Enhanced risk mitigation with RWI: This is a crucial tool for stakeholders that can bolster a risk management strategy, streamline deal negotiations, and offer comprehensive protection at a cost-effective rate.
  • Adaptable and affordable insurance solution: RWI provides flexible coverage options with affordable premiums and initial retentions that become even more favorable after the first year, making it an attractive solution for addressing the unique risks associated with GP-led secondary deals.

The global GP-led secondary market is booming, with a record-breaking transaction volume in 2024. This surge is driven by the growing involvement of traditional buyout private equity sponsors and the abundance of available capital. In this fast-paced and competitive landscape, representations and warranties insurance (RWI) has emerged as a game-changer, offering significant benefits that can facilitate the deal. RWI simplifies transaction negotiations and ensures comprehensive and cost-effective protection, making it a valuable tool for all stakeholders.

RWI stands out for its flexibility and affordability and is an appealing solution for managing the unique risks associated with GP-led secondary deals. This report, developed in collaboration with Jefferies’ Private Capital Advisory team, delves into the detailed advantages of RWI, providing actionable insights and strategies to help sponsors, investors and limited partners navigate the growing GP-led secondary market and achieve superior transaction outcomes.

If you have any questions about this report or want to learn more about RWI for you and your organization, please reach out to a WTW colleague or contact us here.

Disclaimer

WTW hopes you found the general information provided in this publication informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, WTW offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).

Author


Senior Director

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