ABD Insurance and Financial Services Announces New Private Equity / M&A Practice

Leading-edge risk management coverage now available for equity investors

News provided by

ABD Insurance and Financial Services

Sep 13, 2017, 13:15 ET

SAN MATEO, Calif., Sept. 13, 2017 /PRNewswire/ -- Venture capital, hedge fund and private equity firms operating in Silicon Valley, the Greater Bay Area and Seattle now have local access to insurance coverage that has previously had only limited availability.

ABD Insurance and Financial Services (ABD), a regional insurance, risk management and consulting firm, is now offering Directors and Officers coverage on a best-in-class manuscript form that is tailored specifically to the needs of the private equity community and the risk profiles of their investments.

"This product has been primarily driven by middle market Private Equity Funds. However, as the product grows and becomes more well-understood, it will be important to educate the Venture Capital and Strategic Buyer community," said Jonathan Legge, Managing Principal and head of the Executive and Transactional Risk team at Vanbridge. Additionally, this insurance is not generally available in the open market. Leading-edge representations and warranties coverage is now also available for mergers, acquisitions and other financial transactions.

"Building on the deep expertise of our technology, D&O, construction/surety, real estate, and general business practices, ABD is well-positioned to help the Private Equity and M&A sector identify and protect against unique risks," said Brian Hetherington, CEO and Co-Chairman at ABD. "Our team has solved some of the hardest risk problems for growing companies and emerging industries. We're proud to bring this expertise to Private Equity, Venture Capital, and Hedge Fund companies through our new practice. We believe this practice will fill a growing void for this market as many boutique firms are assimilated by large national brokerages."

In addition to these innovative product solutions, a partnership between ABD and Vanbridge LLC (New York) now makes start-to-end deal support services available locally at both the fund level and the portfolio company level, including counsel on due diligence, limits and retentions. ABD's team of specialists, in-house counsel and a deep network of relationships with top Silicon Valley law firms enhance support options available to clients.

"We are fortunate to partner with ABD. They have cultivated a great reputation of service and deep experience protecting Silicon Valley directors, officers, investors and their businesses and we look forward to extending that reach through our cross-company collaboration," said Philip V. Moyles, Jr., Managing Principal & CEO of Vanbridge.

Demand for these insurance products and services comes in part from the active private equity market, which saw assets under management reach $1.47 trillion, a 4 percent increase from 2015 to 2016 and the highest figure ever on record. (Source: Pitchbook's U.S. PE breakdown 2017 2Q.) Equally important is the $14.7 billion in total Representation & Warranties limits deployed, with a staggering 90.4 percent of the reported policies buyer-based. (Source: Vanbridge Reps & Warranties Insurance, 2016 Year in Review.) This explains why the aforementioned coverages have become a strategic tool for equity investors to close their deals quickly, and why counsel from ABD and its partners at the front end of the deal can be as important as the insurance coverage.

This new Private Equity / M&A practice at ABD will be led by Catherine Cope, Assistant Vice-President and Team Leader, who has a decade of experience as a broker in New York and the Bay Area, specializing in minimizing management and professional liability for both public and private equity firms, and placing coverage for their investments and their teams.

"Catherine and the Private Equity practice complement our public company Executive Protection Services team," says Peter Daly, Senior Vice President and Founding Principal at ABD. "It enables us to assist clients through all stages of their company's equity life cycle – private to public and even public-back-to-private conversions, which are so popular in today's market."

About ABD

ABD was founded in 2012, as an employee-owned and client-centered business-to-business professional services firm. We provide leading-edge risk management, insurance brokerage, employee benefits, human resources and retirement consulting services. Our advisers offer deep expertise and craft innovative solutions for clients and industries that are driving regional economic growth.

With headquarters in San Mateo, ABD has offices in Seattle and throughout the Northern California including San Francisco, San Rafael, San Jose, Walnut Creek, Lodi, and Roseville; serving clients across the United States and globally. To learn more, visit www.theABDteam.com.