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Client Ref.: 273.980
Client and project challenges
A Venture Capital firm specializing in the B2B tech sector, currently has 7 investees in Spain and operations in Palo Alto, NYC, Lugano, Zurich and London.
<!– wpml:html_fragment –> Since its incorporation, it has managed funds for more than 100M€ in direct investment in technology start-ups, between institutional and private investors. Its average investment ticket is between €500k and €5M per investee.
<!– wpml:html_fragment –> Since its incorporation, it has managed funds for more than 100M€ in direct investment in technology start-ups, between institutional and private investors. Its average investment ticket is between €500k and €5M per investee.
Our work and approach
Development of the architecture of the D&O, Property & Casualty and Liability Insurance program for the management company and several of its investee companies.
<!– wpml:html_fragment –> After understanding the corporate structure and the needs of the VC managers and partners, we proposed an upgrade in their liability protection program by negotiating with a single global reference insurer a specific umbrella policy for Private Equity and VC protection. We negotiated run-off coverage for portfolio companies, whereby if during the insurance period, the policyholder or any subsidiary divests a portfolio company, any individual who has been serving the portfolio company as a director or officer of the portfolio company will remain insured under this policy until the end of the insurance period for management errors committed in that capacity prior to the divestment.
<!– wpml:html_fragment –> After understanding the corporate structure and the needs of the VC managers and partners, we proposed an upgrade in their liability protection program by negotiating with a single global reference insurer a specific umbrella policy for Private Equity and VC protection. We negotiated run-off coverage for portfolio companies, whereby if during the insurance period, the policyholder or any subsidiary divests a portfolio company, any individual who has been serving the portfolio company as a director or officer of the portfolio company will remain insured under this policy until the end of the insurance period for management errors committed in that capacity prior to the divestment.
Results
Adaptation and improvement of the D&O and Liability programs to the different investment vehicles, SGECR and SGEIC, in total 6 management and investment companies. Automatic incorporation of inclusion clauses for new funds and new investment vehicles on existing policies extending the guarantees of the framework contract.
<!– wpml:html_fragment –> Inclusion of special clauses such as run off in investee companies and management board, liabilities for management errors and improper employment practices, founder’s liability, additional expenses for defense and extradition.
<!– wpml:html_fragment –> Negotiation to include our client with such insurance company pre-qualifying it positively with the right to acquire M&A insurance, such as insurance on representations and warranties, tax opinion, litigation results, among others, benefiting from a discount compared to the market price.
<!– wpml:html_fragment –> Inclusion of special clauses such as run off in investee companies and management board, liabilities for management errors and improper employment practices, founder’s liability, additional expenses for defense and extradition.
<!– wpml:html_fragment –> Negotiation to include our client with such insurance company pre-qualifying it positively with the right to acquire M&A insurance, such as insurance on representations and warranties, tax opinion, litigation results, among others, benefiting from a discount compared to the market price.
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