Diversified Directors & Officers
Private Equity Fund and Management Liability Insurance

Introduction
The private equity industry (which includes venture capital firms, leverage buy-out organizations, mezzanine financiers and funds of funds) has experienced unprecedented growth during the past decade, and it is still growing. With institutional investors and other sophisticated investors seeking greater asset diversification and higher investment returns, private equity funds have raised record amounts of money each year to finance many different types of publicly and privately owned organizations.

With considerable time spent evaluating potential investment opportunities, the management of private equity funds often overlook the exposures they face as a result of their investment and management activities. Limited partners, portfolio companies and their shareholders, employees and other third parties are all potential plaintiffs in lawsuits against the fund and/or its management.

In recognition of these unique exposures, the Diversified D&O Unit developed The Private Equity Fund and Management Liability Policy designed specifically to meet the insurance needs of private equity funds. For over ten years, we have been insuring these types of risks using a modified General Partners Liability product. Now, drawing from our extensive experience in this industry, we have constructed a more comprehensive product providing high quality insurance protection which facilitates our client's ability to operate in a dynamic business environment.

We adhere to a philosophy of personalized client service. We recognize that our responsibilities to our clients extend beyond the provisions set forth in the contract of insurance, and that our clients' interests are best served by consistency in underwriting, fairness in claims management and respect for all parties to the relationship.