@article {Kossovsky34, author = {Nir Kossovsky}, title = {Private Equity Firms Must Ensure That Captive Insurance Companies Meet Stringent Government Requirements}, volume = {20}, number = {4}, pages = {34--35}, year = {2017}, doi = {10.3905/jpe.2017.20.4.034}, publisher = {Institutional Investor Journals Umbrella}, abstract = {Captive investment vehicles have become increasingly attractive in the private equity and hedge fund arena{\textemdash}and, with respect to reputation insurance, there are some very good reasons. But tread carefully, because the U.S. Internal Revenue Service and state regulators have now provided clear signals{\textemdash}evidenced by their investigations of Caterpillar and Moody{\textquoteright}s{\textemdash}that they intend to bring closer scrutiny to anything they believe may have been constructed to be purely a tax shelter. Captives need to signal that they are legitimate insurance carriers, built around actuarily sound principles and clearly stated claim criteria for each of the risks they underwrite.TOPICS: Private equity, legal/regulatory/public policy, in markets, portfolio construction}, issn = {1096-5572}, URL = {https://jpe.pm-research.com/content/20/4/34}, eprint = {https://jpe.pm-research.com/content/20/4/34.full.pdf}, journal = {The Journal of Private Equity (Retired)} }