Emerging Risks in Private Equity Webinar Recap

The recent “Emerging Risks in Private Equity” webinar brought together leading experts to discuss the evolving landscape of private equity and its implications for risk management. With insights from legal, underwriting, and claims professionals, the session provided a comprehensive overview of regulatory trends, market pressures, and new challenges facing the industry. Below are some key takeaways from this timely discussion.

Heightened Regulatory Scrutiny

A central theme of the webinar was the increased attention from federal and state regulators, including the SEC, FTC, and DOJ. Panelists discussed recent enforcement actions focused on fee disclosures, fraud, and fiduciary duties. The message was clear: private equity firms must prioritize transparency and compliance, as even negligent practices can attract regulatory action.

The Impact of State-Level Legislation

The panel explored the growing influence of state-level regulation, particularly in sectors like healthcare. New laws, such as California’s SB 351, are redefining the boundaries of private equity’s involvement in clinical decision-making. Practitioners must stay informed about these developments, as they introduce new compliance challenges and potential for employment-related claims.

Navigating Market Volatility and Portfolio Company Bankruptcies

Rising interest rates, inflation, and labor pressures have led to an uptick in portfolio company bankruptcies. The discussion emphasized that while these challenges are not new, their intensity has increased. Private equity firms are responding with longer hold periods, creative deal structures, and a focus on maintaining liquidity and returns amid uncertainty.

Evolving Exit Strategies and the Rise of Private Credit

This webinar highlighted a resurgence in IPO activity and the growing use of continuation funds as alternative exit strategies. Additionally, the explosive growth of private credit—where PE firms sponsor lending arms—was examined. While these trends offer flexibility, they also introduce new risks related to valuation, transparency, and potential conflicts of interest.

Why This Matters for Professional Liability Practitioners

For professional liability practitioners, this webinar underscored the importance of staying informed about the shifting risk landscape in private equity. The combination of increased regulatory scrutiny, evolving state legislation, and market volatility requires practitioners to take a proactive approach in advising clients on compliance, insurance coverage, and risk management strategies. Understanding these emerging risks is essential for providing effective counsel and ensuring that clients are prepared for the challenges ahead.

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Meet the Speakers

Elan Kandel represents insurance companies with respect to all aspects of claims involving directors and officers liability, employment practices liability, fiduciary liability, professional liability and commercial general liability policies. Before joining Bailey Cavalieri, Elan was a member in the insurance department of a large international law firm. Elan received his law degree from the Benjamin N. Cardozo School of Law. Elan graduated from Tufts University with a Bachelor of Arts degree in History.

Dennis Van Dina currently serves as a Director in the Management Liability/FI claims group at Starr Companies. Joining the insurance industry in 2008, Dennis’s focus has been on D&O and Financial Institutions claims.  He received a BA from St. John’s University and a JD from Hofstra University School of Law.

Teresa Milano specializes in advising public companies and fast-growing private companies (especially when undertaking an IPO, direct listing, or de-SPAC) in various industries to understand their insurance needs in the director and officer liability and other management liability arenas. Teresa leverages the knowledge she learned from spending over a decade on the carrier-side to provide insight to clients into how carriers respond to claims and interpret coverage. Being a lawyer by training and a former management consultant enables her to combine her legal knowledge and business acumen to create solutions for clients to help mitigate their risks and exposures. Teresa is Senior Vice President at Lockton Companies.

Anne Catapano has been working in the insurance industry for the past ten years. Anne graduated from Quinnipiac University School of Law in 2003 and thereafter practiced law in several criminal defense and insurance defense firms throughout New York and Connecticut for twelve years. Anne thereafter worked for LIU for four years handling complex general liability claims and Management Liability Claims. She then worked for QBE, handling Management and Professional Liability Claims for four years. In 2021, Anne joined the Financial Lines claims team at Ascot.

Joe Macchiarola is Senior Counsel of Financial Institutions Claims at Bowhead Specialty. He is an experienced claims attorney skilled in Directors & Officers and Errors & Omissions insurance. Joe has nearly 20 years’ experience in various insurance products within the Professional Liability field including: Lawyers E&O, Miscellaneous E&O, Architects and Engineers, Commercial D&O and Financial Institutions Insurance. He also has a background in commercial litigation.

Kate Gookin is Vice President, Financial Lines at Starr Indemnity & Liability Company. She brings extensive industry experience and a strong focus on supporting clients with tailored risk solutions.