Private equity firms today face a new reality.
Deal flow has slowed to its lowest levels since the pandemic. Hold periods are lengthening, leaving firms with companies they will own long past their intended hold period. At the same time, costs are climbing, especially in employee benefits, where inflation threatens both performance and engagement. And too often, fragmented broker relationships and uneven execution leave portfolios exposed.
Private equity firms cannot afford to leave this important area of value creation on autopilot.
That is why Symphony Transact created SCALE: a portfolio-level framework designed specifically for private equity.
The Five Pillars of SCALE — and What Clients Gain
- Streamlined Due Diligence and Service: Save time and eliminate inefficiencies by consolidating insurers, simplifying administration, and creating consistency across portfolio companies.
- Cost Reduction and Optimization: Free up cash for growth by uncovering wasted spend, negotiating more favorable terms, and aligning broker compensation transparently with outcomes — protecting EBITDA in the process.
- Accountability with a Single Individual: Gain clarity and confidence with one trusted point of contact guiding your portfolio from diligence through exit. No confusion, no handoffs, no finger-pointing.
- Leverage the Portfolio: Improve outcomes by applying collective purchasing power, raising service standards, and partnering with insurers that specialize in private equity — advantages that no single company could achieve on its own.
- Exit-Ready Solutions: Protect enterprise value with programs designed for smooth transitions, clean documentation, and stronger positioning at liquidity events.
The SCALE Process
SCALE is not just a concept — it’s a structured portfolio assessment and implementation process delivered by Symphony Risk.
- Step 1: Portfolio Assessment
A light data request (renewal schedules, policies, benefits census) gives us what we need to review the portfolio. - Step 2: Five-Pillar Scorecard
We measure the portfolio against the five SCALE pillars, highlighting inefficiencies and opportunities. - Step 3: Quick-Win Readout
Within 30–60 days, Symphony Risk delivers findings, immediate cost-saving opportunities, and a clear roadmap. - Step 4: Portfolio Program Implementation
Where there’s alignment, we execute: consolidating insurers, aligning renewals, negotiating fees, and structuring exit-ready programs.
In short: SCALE begins with an assessment but delivers a scorecard, quick wins, and a portfolio-wide roadmap — so private equity firms see value fast and build leverage over time.
Why SCALE Matters Now
- Fewer new deals mean the fastest path to value creation is inside the portfolio.
- Longer hold periods make it worth investing in efficiencies that compound over time.
- Escalating benefits costs demand collective purchasing power to protect both margins and employees.
- Insurers are competing harder than ever for private equity business, creating favorable market conditions.
- Broker performance is lagging — basic service failures are now surfacing at the board level.
Proof in Action: A Recent Case Study
When Symphony Risk introduced SCALE to a middle-market private equity firm with 22 portfolio companies, the assessment uncovered:
- Over 135 policies spread across 47 insurers, with 35 writing three or fewer policies.
- Eight different brokers servicing the portfolio, with multiple brokers on some accounts.
- Millions in premium stacked into a narrow November–January renewal window.
- Inadequate limit benchmarking applied to cyber, management liability and umbrella.
- A compensation structure lacking transparency.
- Generalist broker service teams supporting highly specialized industries.
- Fewer than 20% of policies were placed with insurers who focus on private equity.
The result with SCALE:
- A single Symphony Risk leader accountable for portfolio-wide coordination.
- Clear roles and responsibilities between Symphony Risk, the private equity firm, and portfolio management teams.
- A 12-month engagement calendar to bring discipline to renewals.
- Day-to-day service aligned with the right Symphony specialists by industry.
- A focused panel of private equity insurers competing on price and service.
- Transparent portfolio-wide compensation aligned with outcomes.
The outcome was clarity, efficiency, and a roadmap to sustainable portfolio-wide value creation.
Questions We Hear From Clients
- “We leave insurance and employee benefits matters to the portfolio company management teams.”
That approach has worked up until now. In many cases, the combined purchasing power of the portfolio will be necessary to simply obtain affordable and adequate coverage. - “Will my portfolio companies lose autonomy?”
No. SCALE can preserve portfolio company decision-making while giving investors clarity and leverage. - “How disruptive will this be to our portfolio companies?”
The SCALE approach limits disruption as much as possible. There will eventually be a broker change, but SCALE builds structure and standards first, without forcing wholesale replacement. In most cases, portfolio companies can maintain their renewal dates and other attributes that are important to them. - “We looked into this years ago and it didn’t amount to anything. What is different from the last time we tried to do this?”
Insurance companies were likely the bottleneck during that failed process. A lot has changed since then. All major insurers have a dedicated private equity offering with teams of professionals focused on getting their different underwriting units to work together. - “How much information do we need to provide to complete a SCALE assessment?”
An initial SCALE assessment can be completed with minimal information, informing whether or not it makes sense to proceed further. - “How quickly can I see results?”
The assessment delivers actionable insights and quick wins within 30 days of receiving information.
A Final Word
SCALE is not about tinkering with policies or chasing small discounts. It is about rethinking how portfolios create value, protect employees, and prepare for the future.
At Symphony Risk, we believe private equity deserves a broker who mirrors its investment approach: specialized, disciplined, and always aligned with the client. SCALE is one more way we are building the world’s best Symphony.