Ex Goldman Sachs executives have partnered up with industry veterans to launch Birch Risk Advisors, a New York-based firm that provides specialized insurance solutions for unique transactional risks.
Backed by global insurer AmTrust Financial, the new insurance advisory firm will be led by Steve Bunson, Barry Sklar, Sheldon Elefant, and David Danesh.
According to the announcement, Birch Risk Advisors will offer bespoke solutions, including:
- Tax Insurance – transferring uncertain tax exposure to top-rated insurance carriers, inside and outside of M&A transactions.
- Tax Credit Transfer – which involves 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, which includes judgment preservation and successor liability.
- R&W Insurance – protecting against financial loss resulting from breaches of seller representations and warranties.
Bunson a former Goldman Partner and longtime Global Head of Tax, along with Sklar, a senior Goldman Managing Director and US Head of Structured Investing, have both advised on billions of dollars’ worth of complex transactions and maintain strong relationships within the international investment banking and private equity communities.
Sklar is set to join Birch in late December.
Elefant, who previously served as the US Head of Tax Insurance at WTW, along with Danesh, former 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.
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.”
“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.”
