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.
