Mid-Cap PE Firm Reduces Construction Portco Insurance Rates by 30%

Challenge

Days before acquiring a company, a vice president at a mid-size private equity firm discovered a critical gap in M&A diligence. The issue cost approximately $200K and forced the firm to re-trade the deal.

Meanwhile, the CEO and the controller of one of the firm’s portfolio companies, a construction enterprise, were also experiencing pain. Their insurance program was inadequate, surety capacity was limited, and broker service was lacking.

The firm recognized that it needed a clearer view of the risks affecting both future transactions and current portfolio companies and made the decision to engage Hylant. Hylant began with the portco, whose insurance program was up for renewal in 30 days.

Solution

Reviewing the portco’s insurance program, Hylant quickly identified missing coverages, incorrect forms, and administrative errors that increased costs, created coverage gaps, and hindered growth. The findings suggested that the previous broker lacked private equity and construction expertise.

Hylant assembled a team of specialists for the client, including experts in M&A, construction, surety, executive risk, and cyber, to address the firm's unique needs. The team effectively marketed the client's program, securing engagement from carriers ideally positioned to protect the construction portfolio company and support its continued growth, while delivering on schedule.

The company achieved 30% lower rates, 75% lower deductibles, stronger coverage terms, and a program built for growth.

Regardless of size, PE firms need expert risk advisors who protect deal value, strengthen portfolio companies, and support growth.