Dividend recapitalization is a tool that enables private equity firms to extract liquidity from portfolio companies without the need to complete a sale or IPO. In the following guest post, the authors explore this funding technique, which is not without its risks and exposures and which may raise important insurance issues as well. This article is co-authored by Sarah Abrams, Head of Professional Liability Claims, Bowhead Specialty Underwriters, Inc., Elan Kandel, Member, Bailey Cavalieri LLC and James Talbert, Associate, Bailey Cavalieri LLC. I would like to thank the authors for allowing me to publish their article as a guest post on this site. I welcome guest post submissions from responsible authors on topics of interest to this blog’s readers. Please contact me directly if you would like to submit a guest post. Here is the authors’ article.Continue Reading Dividend Recaps: Potential Risks for Private Equity Firms and Their Insurers