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Emerging Hedge Fund Manager D&O Insurance Feasibility

Mar 16, 2016 9:26:57 AM ,

loudagostino

Our team regularly speaks with emerging managers about purchasing D&O Insurance at the early stages of fund formation and the cost feasibility of such an investment.

While the inquiries vary, some of the more typical questions we get are:

  1. Should we buy this now? If not now, at what AUM threshold does it make sense to purchase this type of coverage?
  2. If we are indemnified by the fund, why do we need this coverage?
  3. What is/is not covered under the policy?
  4. How much does it cost?
  5. Can the fund bear some of the costs of this coverage?

Given the current hedge fund climate and the fact that operating costs are steadily on the rise coupled with downward fee pressure, keeping insurance costs in-line are an absolute necessity.

Emerging Hedge Fund Manager D&O Insurance Feasibility 3.15.16 Thumbnail

Our corporate philosophy is to be as consultative as possible and educate all of our clients and prospective clients on the pros and cons of such a large investment. Our goal is to learn about the organization, its growth objectives and recommend a solution that is feasible from a cost perspective which also addresses the various liability and risk management concerns. Click Here or Click Thumbnail for PDF of Article.

 

Louis D’Agostino is a Partner and Senior Vice President of Iron Cove Partners, LLC. Mr. D’Agostino is responsible for the oversight and management of Iron Cove’s Financial Institutions Practice which is dedicated to addressing the unique and complex risk management needs of companies engaged in the arena of financial services. i.e. Private Equity Funds, Hedge Funds, Investment Advisers, Securities/Dealers, Mutual Funds and the like. Mr. D’Agostino & his team currently serve as insurance adviser to some of the world’s largest Asset Managers and Financial Institutions.

Tags: Insurance, insurance, investor risk, advisory, brokerage, directors and officers liability, Directors & Officers Liability, emerging hedge fund manager, feasibility, hedge funds, Iron Cove Partners, Lou D'Agostino, protection, regulatory risk

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