{"id":36370,"date":"2026-01-14T15:53:40","date_gmt":"2026-01-14T21:53:40","guid":{"rendered":"https:\/\/www.bbrown.com\/?post_type=case_study&p=36370"},"modified":"2026-01-20T08:45:18","modified_gmt":"2026-01-20T14:45:18","slug":"secondary-transaction-solving-unique-challenges","status":"publish","type":"case_study","link":"https:\/\/bbrown.com\/us\/case-study\/secondary-transaction-solving-unique-challenges\/","title":{"rendered":"Secondary Transaction | Solving Unique Challenges"},"content":{"rendered":"

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Case Study<\/p>\n

\n Secondary Transaction | Solving Unique Challenges\n <\/h1>\n\t\n <\/div>\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n\n\t<\/div>\n\n\t\n[\/vc_column][\/vc_row][vc_row row_padding_bottom=”pb-2″ full_width=”stretch_row” equal_height=”yes” content_placement=”bottom”][vc_column width=”1\/4″][vc_single_image image=”791″ img_size=”full”][\/vc_column][vc_column width=”3\/4″]\n
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\n The Request\n <\/h2>\n\t\n <\/div>[vc_column_text css=””]<\/p>\n

RWI for continuation fund transaction<\/h3>\n

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Company Profile<\/strong><\/h4>\n

Acquirer Type:<\/strong> Secondaries Transaction\/Continuation Fund<\/p>\n

Target Industry:<\/strong> Various<\/p>\n

Request<\/strong><\/p>\n

A private equity customer wanted to create a continuation fund for two of its distressed portfolio companies, which would allow its limited partners to choose to realize on a return or continue on with the investment. The customer retained Brown & Brown to secure representation and warranties insurance (RWI) for the transaction.<\/p>\n

The customer wanted to provide the buyers with an indemnification mechanism for breaches of the sellers\u2019 representations and warranties in a related-party transaction with minimal due diligence.[\/vc_column_text][\/vc_column][\/vc_row][vc_row row_padding_bottom=”pb-2″ full_width=”stretch_row” equal_height=”yes” content_placement=”bottom” css=”.vc_custom_1638896243466{background-color: #eaeaec !important;}”][vc_column width=”1\/4″][vc_single_image image=”794″ img_size=”full”][\/vc_column][vc_column width=”3\/4″]\n

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\n The Solution\n <\/h2>\n\t\n <\/div>[vc_column_text css=””]<\/p>\n

Public-style RWI workaround<\/h3>\n

[\/vc_column_text][\/vc_column][\/vc_row][vc_row row_padding_top=”pt-1″ full_width=”stretch_row” css=”.vc_custom_1638896256859{background-color: #eaeaec !important;}”][vc_column][vc_column_text css=””]The legacy general partner (LGP) was reluctant to execute the transaction. While they ultimately agreed to the transaction under pressure from its Limited Partners, they demanded that the transaction be structured as a \u201cpublic-style\u201d transaction, meaning that the representations and warranties terminate at closing.<\/p>\n

This approach would leave the buyer with no recourse for breaches of the LGP\u2019s representations and warranties except in the case of the LPG\u2019s fraud. Even more challenging for Brown & Brown and the buyers, the LGP refused to cooperate with the RWI underwriting process.[\/vc_column_text][\/vc_column][\/vc_row][vc_row row_padding_bottom=”pb-2″ equal_height=”yes” content_placement=”bottom”][vc_column width=”1\/4″][vc_single_image image=”792″ img_size=”full”][\/vc_column][vc_column width=”3\/4″]\n

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\n The Results\n <\/h2>\n\t\n <\/div>[vc_column_text css=””]<\/p>\n

1. Secured RWI coverage<\/h3>\n

2. Streamlined underwriting<\/h3>\n

3. Alternative diligence approach<\/h3>\n

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