Share on LinkedInShare on LinkedIn

ARTICLE · 02 MARCH 2025

Damages Done Right: How Quantum Expertise Protects Value In Private Equity Transactions

Private equity dealmaking has accelerated dramatically, bringing compressed timelines and competitive auctions that create structural conditions for post-closing disputes. When these disputes arise, the gap between claimed and awarded damages averages 60% - a disparity driven largely by how well the damages case is analyzed and presented.

GermanyFinance and Banking

Private equity dealmaking is moving faster than ever. Competitive auction processes, compressed diligence timelines, and secondary transactions have become standard features of the deal landscape—as have post‑closing disputes. For GPs, these disputes are no longer a legal sideshow; they can reshape deal-level IRR, depress fund-level KPIs, and complicate the fundraising narrative for the next vintage.

More importantly, the outcome of such disputes often significantly affects fund performance, such as hindering future fundraising capabilities. In that environment, getting damages right is not just a legal formality, but a question deserving management attention and a way to preserve value.

Published arbitral rulings over the last three years indicate that, in case of a ruling in favor of the claimant, the average award amounted to 27% of the initial damages claim. Over the long-term, this ratio averages at around 40% of the initial damages claim.1

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

See more popular content from