CFO Slice

Insurers that provide directors-and-officers liability coverage to private-credit firms are preparing for a potential wave of lawsuits and regulatory actions, prompting higher premiums and stricter policy terms amid growing scrutiny of valuation practices across the industry. Insurance executives expect premium increases to accelerate, with some forecasting double-digit rises as concerns mount over how private-credit funds value their loan portfolios. Marsh reported that premiums for private-credit and private-equity D&O policy renewals increased 3% year-over-year in the first quarter, while rates for public companies generally remained flat. The heightened caution follows a surge in investor redemption requests and concerns that some private-credit assets, particularly loans to software companies vulnerable to AI disruption, may be overvalued. Industry leaders have pushed back on those fears, although Apollo Global Management chief executive Marc Rowan recently pledged greater transparency, including daily pricing for private-credit funds by September.