Tuck Private Equity & Venture Capital Conference - 2025

Snow, sleet, freezing rain made the drive up 89 from Boston to Hanover longer and more stressful than I’d planned. Make a plan and God laughs. The effort, however, was worth it for it was another great Tuck PEVC Conference.  Lockton was once again a sponsor. Bobby Steinsdorfer D’07 and I were in attendance as well as Mach Millett, our Alternative Investment Leader and CINO. Mach participated on the “Nuts & Bolts – The Broader Private Equity Ecosystem” panel.

The event kicked off with dinner at The Inn which included a fireside chat Marni Payne D’98, Managing Director at Berkshire Group and Professor Josh Lewis, Executive Advisor for Tuck CPEVC. Marni is focused on the consumer market in which it is hard to gain share of voice and share of eyeballs due to the fickleness of the changing consumer. They covered a wide swath of topics including fads vs. trends, best days and worst days in PE and what makes Berkshire Group different. I appreciated her discussion of alignment with the founder / management team as the formula for growth, scale and success. The business is not about “the chase” but focused on “the marriage”.

Pine at the Hanover Inn was busy after dinner, and I decided it was best for this 88 to hit the rack. It was a good decision as I was able to get in a 7.5 hike around campus before the event kicked off on Friday. Campus was quiet and beautiful with a fresh coat of snow. The Building & Grounds crew was clearing the ice at Occum Pond for some Winter Carnival skating and a handful of houses on Webster Ave. were forming the foundations of snow sculptures.

The day started with another fireside chat with Jeffrey Crisan D’95 and Jamie Havran T’25, Conference Co-Chair, & PE/VC Fellow. Once again, a wide range of topics was covered. Healthcare was the first discussed. Jeff feels that States as opposed to the Feds will be focusing on healthcare regulation over next 4 years. Mental health is an area of focus in healthcare fueled by HITECH, ACA, Mental Health Parity Act and demand accelerated through the pandemic. In technology, it’s best to think of the long-term benefits – think internet, SAS and now AI. He gave a wonderful illustration of evolving the podiatry business model into one that provides integrated care management to diabetes patients.

I attended several panels and a highlight was Energy & Climate featuring Jeph Shaw T’15, Sara Simonds T’03, James Socas, and Dave Russ - moderated by Jordan Swett, T’25. Some of the issues that resonated with me are

• Wind and solar are growing rapidly (90% cost reduction in solar)
• Most investments are going to red states (Texas is biggest renewable state)
• Family offices are looking for climate investments from a social lens
• Capital markets aren’t working efficiently for innovation investments like climate

Alas, I had Zoom call that ended my day at Tuck in the early afternoon. I did grab dinner at Murphy’s with some fellow Alums and then watched the Big Green beat Harvard in Men’s Hockey. All in all, a very successful day at Dartmouth.
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Other Key Takeaways:

𝗦𝗲𝗰𝗼𝗻𝗱𝗮𝗿𝘆 𝗠𝗮𝗿𝗸𝗲𝘁 𝗚𝗿𝗼𝘄𝘁𝗵 - liquidity solutions are expanding, and LPs are leveraging the secondary market more strategically than ever.

𝗡𝗼 𝗧𝗼𝗹𝗲𝗿𝗮𝗻𝗰𝗲 𝗳𝗼𝗿 𝗗𝗼𝘄𝗻𝘀𝗶𝗱𝗲 𝗥𝗶𝘀𝗸 - with higher interest rates and economic uncertainty, firms are laser-focused on resilient deal structures and downside protection.

𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗥𝗮𝗶𝘀𝗶𝗻𝗴 𝗖𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲𝘀 - differentiation is critical. Breaking through the noise in an era of information overload takes more than just a strong track record.

𝗣𝗼𝘀𝘁-𝗖𝗹𝗼𝘀𝗲 𝗩𝗮𝗹𝘂𝗲 𝗖𝗿𝗲𝗮𝘁𝗶𝗼𝗻 - the focus continues to shift from financial engineering to operational excellence, making real impact at the portfolio level.

𝗧𝗵𝗲 𝗣𝗼𝘄𝗲𝗿 𝗼𝗳 𝗦𝗮𝘆𝗶𝗻𝗴 𝗡𝗼 - disciplined investing isn't just about where capital is deployed; it's also about the deals and ideas that don't make the cut. Knowing when to pass is just as important as knowing when to commit.
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Several Tuck students looking at careers in PE or VC asked me “Smitty, how does insurance fit in with Private Equity and Venture Capital?” In short, our business help clients through fund level insurance, transactional liability and insurance due diligence. Given firms’ exposure to a variety of risks across different industries, specialized insurance products are needed both at the fund level and the portfolio company level. Risk appetite and approach to insurance depend on factors like firm culture, past relationships, deal structures, leverage, and exit strategies – to name a few. So here’s a primer on the topic and where Lockton works.

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A. Fund-Level Insurance Needs (Protecting the Firm & Executives)

• General Partner Liability Insurance (GP Liability): Protects the firm and its executives from lawsuits related to fund management, breaches of fiduciary duty, and investor disputes. Some firms are facing increased scrutiny from LPs and regulators.
• Directors & Officers (D&O) Insurance: Covers the firm’s executives against claims from LPs, regulators, or other stakeholders. LPs may demand this coverage before committing capital.
• Professional Indemnity (Errors & Omissions) Insurance: Protects against lawsuits arising from claims of mismanagement, negligence, or failure in investment strategies. LPs may also require this type of coverage.
• Reps & Warranties (R&W) Insurance: Used in M&A deals to cover breaches of reps and warranties made by sellers, reducing escrow requirements. Sometimes R&W allows deals to close faster and with less negotiation over escrows and indemnities.
• Cyber Liability Insurance: Protects against data breaches and cyberattacks affecting sensitive deal-related information. Firms handle sensitive financial and personal data, making them prime cyberattack targets.

B. Portfolio Company Insurance Needs (Protecting Acquired Businesses)

• Property & Casualty (P&C) Insurance: Covers physical assets, business interruption, and general liability. Some lenders and investors require P&C coverage as part of financing agreements.
• Management Liability (D&O, EPLI, Fiduciary): Covers executives of portfolio companies against lawsuits related to governance and employment practices.  These protections are becoming increasingly essential for retaining and attracting top executive talent.
• Cyber & Data Breach Insurance: Protects against financial, reputational and operational risks of cyberattacks. Data breaches are costly and operationally disruptive. Many portcos operate in sectors with sensitive data (e.g., healthcare, fintech).
• Workers’ Compensation & Employee Benefits Liability: Ensures compliance and protection against people-related risks. Workers’ Comp and Benefits (ACA) are not only legally required coverages but can assist in increasing productivity as well as talent attraction and retention.
• Trade Credit & Political Risk Insurance: Helps mitigate risks in global operations, especially in emerging markets. Important for global expansion and risk mitigation in emerging markets.

• Transactional Risk Insurance (e.g., Tax Liability, Contingent Liability) Covers unexpected tax assessments or legal liabilities discovered post-acquisition. Helps firms avoid costly surprises after closing deals.

C. Why Some Firms Look To Avoid Insurance

• Cost Considerations (“It costs too much”): Some firms may view insurance premiums as an unnecessary expense, preferring to self-insure. Your broker should be well versed in your business to market possible coverages to help you determine whether the protection is worth the cost. Also, self-insuring can be more expensive in the long run. Reps & Warranties insurance, for example, can reduce escrow needs and improve capital efficiency.
• Risk Tolerance (“We just don’t see the risk”): Some firms, usually those with well-diversified portfolios, may prefer retaining risk rather than paying for coverage. While it was Teddy Roosevelt that said, “Comparison is the thief of joy”, we have plenty of case studies of recent lawsuits, regulatory fines, or unexpected claims affecting firms that may help firms better see the risks.
• Alternative Risk Transfer Mechanisms: Firms may use captive insurance companies or structured finance solutions instead of traditional insurance. We have lots of expertise and dedicated teams to help assess whether a captive makes sense and then how to implement and operationalize the strategy.

Insurance, done properly, is an efficient use of capital and delivers ROI.
Insurance can a tool to unlock capital, facilitate exits, and reduce deal risks. Well-structured insurance programs make portfolio companies more attractive at exit.
Your broker should understand the specific risks of your portfolio industries (e.g., healthcare, manufacturing, tech) and offer customized solutions.