Ex-Goldman Sachs Executives Partner with Insurance Veterans to Launch Global Transactional Risk Firm, Birch Risk Advisors

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Nov 07, 2023, 09:00 ET

With an international client roster, the new firm provides specialized insurance solutions for unique transactional risks

NEW YORK, Nov. 7, 2023 /PRNewswire/ -- As dealmakers across Wall Street and corporate America increasingly turn to transactional risk insurance, an accomplished team of former tax attorneys and investment bankers today announced the launch of New York-based Birch Risk Advisors. Backed by global insurer AmTrust Financial, the new insurance advisory firm will be led by Steve Bunson, Barry Sklar, Sheldon Elefant, and David Danesh.

Bunson, a former Goldman Partner and longtime Global Head of Tax, and Sklar, a senior Goldman Managing Director and U.S. Head of Structured Investing, have advised on billions of dollars' worth of complex transactions and maintain strong relationships within the international investment banking and private equity communities. Sklar joins Birch in late December.

Elefant, previously the U.S. Head of Tax Insurance at Willis Towers Watson, and Danesh, previously SVP and Director in the Specialty Insurance practice at Alliant Insurance, are well-known tax attorneys with extensive transactional risk experience across the global M&A markets and tax-controversy landscape. Elefant and Danesh have structured and executed specialty insurance coverage for several of the largest and most prominent deals in the industry.

Barry Zyskind, Chairman and Chief Executive Officer of AmTrust Financial said, "The seasoned experts at Birch Risk Advisors presented an exciting opportunity for AmTrust to invest in the continued growth of the transactional risk market. We have tremendous respect for the collective experience the Birch team provides through their innovative, integrated approach to managing risk and navigating the global tax and dealmaking landscape. We truly value this partnership and look forward to the continued success of their talented team as well as other future growth opportunities."

Together, the Birch team leverages over 100 years of combined advisory experience and cross-disciplinary expertise to provide tailored insurance solutions addressing complex transactional, tax, and litigation risks. Birch Risk Advisors offers bespoke solutions, including:

Tax Insurance—transferring uncertain tax exposure to top-rated insurance carriers, inside and outside of M&A transactions.
Tax Credit Transfer—navigating the intricate market of renewable energy tax credits, from sourcing to deal closure.
Contingent Risk Insurance—mitigating legal and judgment risks arising from litigation, including judgment preservation and successor liability.
R&W Insurance—protecting against financial loss resulting from breaches of seller representations and warranties.

Notably, a significant tailwind powering the recent demand for transactional risk insurance is President Biden's landmark Inflation Reduction Act (IRA). Through its seminal clean energy tax credits provisions, the IRA is expected to unleash nearly a trillion dollars in increased domestic energy production while accelerating global energy innovation. In addition, the IRA has transformed the current tax-controversy landscape with dedicated funding for the IRS, aiming to improve compliance among high-income individuals, complex partnerships, and large corporations via tax audits and challenges.

These developments have fueled the use of transactional risk insurance to provide certainty with renewable energy tax credits as well as transferring risks with potential IRS challenges in tax litigation to an A-rated insurance carrier—delivering confidence around tax, transactional, and litigation risk exposure.

"With the evolution of the transactional risk insurance market, insurance capital is now a powerful solution for complex M&A transactions and uncertain balance sheet risks," said Steve Bunson, Advisory Director at Birch Risk. "We expect large legacy tax exposures—including transfer-pricing, valuations, and IRS controversy—to now be significantly more risk-managed and minimized, which will provide consequential balance sheet savings."

About Birch Risk Advisors
Backed by global insurer AmTrust Financial, Birch Risk Advisors is a leading independent insurance advisory firm providing innovative risk solutions for complex transactional, tax, and litigation risks. The team of experienced tax attorneys, investment bankers, and risk mitigation specialists leverage their deep expertise in executing comprehensive risk transfers across the global specialty insurance markets. Learn more at: www.birchrisk.com

Media and Analyst Contact
Joe Fox
Intersect Communications, for Birch Risk Advisors
[email protected]

SOURCE Birch Risk Advisors