Rising defense costs, a shifting regulatory environment, and competitive insurance pricing are key trends shaping the general partnership liability (GPL) marketplace as we head into Q4 2024 and 2025. For both the venture capital and private equity community, rising claims activity is a continuing trend, particularly concerning portfolio companies and regulatory issues, as well as outside directorship liability. Other challenges stem from general partner infighting and personal disputes, which incur high defense costs and higher-than-average settlements. Additionally, the SEC is increasingly encroaching on the exempt reporting adviser space for venture capital firms.
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