Specialty private equity firm Flexpoint Ford has closed a single asset continuation vehicle for SageSure, a general underwriter (MGU) specializing in the catastrophe risk market, with total commitments in excess of $460 million, including commitments from the general partner and rollover investors.
The continuation vehicle, led by Lexington Partners with participation from Barings and Round2 Investment Partners, enables Flexpoint to expand its ownership of high-performing assets.
The company believes the portfolio companies have significant future value creation potential and the transaction provides current investors with the option to retain their stakes or secure liquidity.
Since its founding in 2009, SageSure has become one of the largest property MGUs in the United States, managing $3.2 billion in written premiums for more than 970,000 policyholders in 16 states.
Flexpoint made its first investment in the company in May 2023, helping SageSure expand its distribution and products and acquire residential seismic MGU GeoVera and MGU Olympus, Florida’s premier mass affluent residential property.
“SageSure’s ability to deliver innovative property insurance solutions in coastal markets while maintaining underwriting discipline has earned the company the admiration of a diverse stakeholder group, including policyholders, insurance agents, carrier partners and the reinsurance market,” said Flexpoint managing director Dominic Hood.
Chris Ackerman, CEO of Flexpoint, added: “We are pleased to continue working with the SageSure management team and believe the company is well-positioned to bring its differentiated underwriting capabilities to more markets and policyholders in the coming years.
“This transaction enables Flexpoint to provide liquidity options to existing investors in one of our high-performing companies, while welcoming a new group of partners who share our belief in SageSure’s future prospects.
Terrence McLean, President and CEO of SageSure, commented: “Our continued partnership with Flexpoint provides a stable foundation for SageSure’s next phase of expansion, and we are grateful for the momentum we have built together over the past three years.
“As we continue to scale, we look forward to welcoming new capital partners who share our commitment to bringing innovation and stability to the markets that need it most.”
Jefferies LLC served as Flexpoint’s financial advisor, and Kirkland & Ellis LLP served as legal advisor on the transaction. Simpson Thacher & Bartlett LLP is serving as legal counsel to Lexington.
