Insights into 2025 from the Private Equity and M&A team

Author: Richard Hornby

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So far in 2025, the private equity (PE) landscape is experiencing significant shifts, influenced by global economic factors and growing lack of liquidity. Despite these challenges, general partners (GPs) are set to return record levels of invested capital back to LPs. Success will depend on establishing operational excellence within their current portfolios and securing favorable exit valuations.

This white paper provides an overview of the current state of PE buyout fund activity by reference to the Representations and Warranties (R&W) insurance market and the role of insurance in facilitating successful investments in the US. We explore these key topics:

  • How middle-market clients are engaging insurance solutions to support growth and investment
  • Five challenges the PE sector faces in 2025
  • Four ways insurance plays a critical role in returning invested capital to limited partners
  • Why R&W market conditions have improved expectations for the second half of 2025
  • The increasing severity of R&W claims driven by sophisticated insureds

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The information contained herein is offered as insurance Industry guidance and provided as an overview of current market risks and available coverages and is intended for discussion purposes only.

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