Venture capital firms have unique risk exposures in every aspect of the business life-cycle including acquisition, capitalization, formation, management and operation of their portfolio companies. Additional exposures are created when the fund employees serve as directors, officers, trustees or as management of a portfolio company.
How We Can Help
Maloy Risk Services protects your fund assets by placing a master Directors and Officers / Professional Liability policy at the fund and management company level and then wraps individual policies around each invested portfolio company. This integrated approach ensures that your investment professionals are not left uncovered at the portfolio company board level. We then provide tracking and reporting to make sure you know that the portfolio companies are continually covered.
Industry Articles
Venture Capital, one of the main drivers of private investment in this country, has seen radical changes to the business landscape in the past three years. The economic downturn has forced many of their portfolio investments to file for bankruptcy costing the firms hundreds of millions of dollars, not to mention their limited partners and the founders of their invested entities. What happens when a company is shuttered? Who is responsible for the wind down? What happens to the founders and employees? What about the Venture firm, are they held accountable? The ripple effect of a portfolio company’s bankruptcy can have a myriad of implications for the various stakeholders in the game and raises important questions about the insurance structure in place to help save and protect the Venture firms’ assets as well as the assets of the portfolio company’s Directors and Officers.
