|  |  |  |  |  |  |  for Investment Portfolios Often, private equity investment portfolio companies obtain their own insurances individually. Not surprisingly, this can result in the purchase of a large number of expensive policies.
So it is sensible for private equity companies to reduce the cost of their portfolio company insurances, by making use of their power to buy collectively. Not only will this reduce the individual cost base, but it will also reduce the insurance-related administrative burden within each company.
Additional benefits for the private equity company are enhanced risk management for both the private equity advisor and the investees, plus enhanced protection for the private equity advisor’s own management liability policy.
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