Financial Sponsors
Financial sponsors — private equity, growth equity and venture capital firms, private credit managers, infrastructure and real asset funds, family offices, holding companies and sovereign wealth vehicles — operate differently than traditional corporate clients. Capital is deployed across a portfolio. Value is created across a hold period. And every decision, from initial underwriting through exit, carries risk that compounds if it isn't anticipated early.
HUB's Financial Sponsors practice is built around that reality. We're not organized around transactions or product lines — we're organized around your relationships: the manager entity, the funds and every portfolio company to ensure that you’re protected across the full lifecycle of your investment.
Stay Ahead of Industry Challenges
Where the deal timeline creates the exposure
Across acquisitions, holding periods and exits, HUB has worked through the diligence gaps, premium pressure and board-level recruiting challenges that surface when deal timelines compress the window for getting a portfolio company's risk program right the first time. HUB brings financial sponsors deep transactional risk experience and a clear view of where these pressures build.
Heightened personal liability exposure for outside directors and operating executives serving on portfolio company boards, combined with a competitive market for experienced operating talent, is making it harder for financial sponsors firms to recruit and retain the leadership needed to drive value creation across an expanding portfolio.
HUB structures D&O coverage at the portfolio company level specifically to protect outside directors and operating executives personally, not just the fund. Making that protection clear and consistent across every board seat is part of how firms make the role attractive enough to recruit for.
An operating executive considering a board seat asks about personal liability protection before they ask about equity, and firms that can answer clearly win that recruiting conversation.
Firms with clear, consistent D&O protection for outside directors and operating executives across every portfolio company board recruit and retain operating talent without personal liability becoming the deciding objection.
Rising D&O and employment practices liability (EPL) premiums are squeezing portfolio company profit margins while entry multiples and leverage are already under pressure. Financial sponsors firms are left weighing executive liability program adequacy against the deal economics they committed to at acquisition.
HUB structures D&O insurance with the deal's underwriting case in mind, not as a cost negotiated after the model is set. Consolidating these lines across a growing portfolio, instead of pricing each company separately, is how firms protect margin assumptions at scale.
The firms that protect margin best are those who consolidated D&O coverage across the portfolio instead of renegotiating it company by company.
Firms with D&O and EPL coverage consolidated across the portfolio protect the margin assumptions built into each deal's underwriting case without renegotiating coverage company by company.
Deal timelines compress the window available for thorough insurance and risk due diligence on acquisition targets. Undisclosed liabilities or unidentified insurance gaps can survive the transaction and surface as portfolio company costs during the holding period rather than being priced into the deal.
HUB's due diligence of insurance and risk programs for acquisition targets is built to move at deal speed, identifying gaps before close rather than during the holding period. R&W insurance, tax indemnity and litigation buyout coverage are structured alongside the closing, and D&O and cyber for the newly acquired portfolio company are in place from the moment the deal closes.
Catching liabilities before acquisition keeps them out of the portfolio company’s cost structure later; missed issues rarely get less expensive to resolve.
Deals with insurance due diligence built into the closing timeline price identified gaps into the transaction instead of discovering them as unplanned portfolio company costs during the holding period.
Tailored Risk Solutions for Your Industry
How HUB coordinates protection across the full deal lifecycle
Acquisition, holding and exit each carry distinct insurance needs and placing R&W, D&O, tax indemnity and cyber separately at each phase leaves gaps exactly where a deal moves fastest. HUB coordinates these lines under one relationship across the full lifecycle.
Deal timelines compress the window available for thorough insurance and risk due diligence, creating risk that undisclosed liabilities or unidentified insurance gaps survive the transaction and surface as portfolio company costs during the holding period instead of being priced into the deal. HUB's due diligence of insurance and risk programs for acquisition targets is built to move at deal speed and is paired with R&W insurance, tax indemnity and litigation buyout coverage that transfers identified risk to an insurer rather than leaving it on the buyer's balance sheet. Because buyer urgency is deal-timeline driven rather than renewal-cycle driven, HUB structures this work to fit inside the closing process itself, not as a separate workstream that competes with the deal team's deadline. For a firm evaluating multiple acquisition targets at once, having diligence and transactional coverage coordinated under one relationship is what keeps deal speed from coming at the cost of deal quality.
Rising D&O and EPL premiums are squeezing portfolio company profit margins at the same time that entry multiples and leverage are already under pressure, forcing firms to weigh coverage adequacy against the deal economics they committed to at acquisition. HUB structures D&O insurance financial services portfolio companies need at both the fund level and the portfolio company level, since outside directors and operating executives carry heightened personal liability exposure that the fund-level program alone doesn't address. Consolidating D&O and EPL coverage across a growing portfolio, rather than pricing each company separately, protects the margin assumptions built into every deal's underwriting case. Claims advocacy dedicated to D&O and EPL exposure at both the fund and portfolio company level is built into the same relationship, so a claim against a single portfolio company doesn't become a disconnected, one-off negotiation.
Newly acquired portfolio companies are frequently targeted by ransomware, — public deal announcements signal new access to capital, and many acquired companies carry cybersecurity gaps that weren't fully visible during diligence. HUB structures cyber insurance for financial sponsors to apply from the point of acquisition rather than wait for the next renewal cycle and consolidates programs across the portfolio as it grows, reducing the redundancy of negotiating cyber and liability coverage separately at every individual company. HUB brings a perspective most brokers in this space don't have: HUB is itself a portfolio company, with direct, firsthand experience of the acquisition and integration process its private equity clients are managing for their own portfolio companies. That experience shapes how program consolidation is structured, around how integration happens, not around a generic multi-entity insurance template.
Industry Insights
Financial Sponsors insights and research
