Lumen Holdings, LLC, a technology-based managing general agent (MGA) headquartered in Dallas, Texas, has been acquired by Vistria Group, LP, a middle market private investment firm.
The transaction positions Lumen as a new platform investment in Vistria’s financial services strategy.
Vistria noted that this move reflects the culmination of years of work focused on the growing specialty MGA market, driven by carriers’ increasing reliance on specialized, technology-enabled underwriting partners.
Scott Whitaker, founder and CEO of Lumen, said: “I am extremely excited to partner with Boris, Mike and the Vistria team. Their belief in building Lumen and the value MGA brings to the market is fully aligned with our strategy: to continue to build a best-in-class diversified MGA focused on strong underwriting performance and supported by cutting-edge technology. Vistria is the perfect partner to help take Lumen to the next level as we look to recruit underwriting talent and support the launch of new programs on the KURRENT platform.”
Lumen covers commercial real estate, builder’s risk, commercial general liability, personal auto, homeowners and umbrella in more than 30 states.
Since its founding in 2019, MGA has successfully developed a diverse network of national distribution partners, including national wholesale and retail brokers, and successfully launched and expanded multiple new or ground-up programs.
Lumen’s unwavering commitment to delivering market-leading underwriting performance has resulted in the capacity support of some of the industry’s best-known brands.
MGA’s proprietary KURRENT platform is core to its operating model. This fully integrated digital underwriting and distribution system streamlines submission intake, underwriter communications, policy delivery, endorsement processing, renewals and real-time portfolio analysis through a comprehensive dashboard and reporting system.
. Lumen recently expanded KURRENT with enhanced digital capabilities for individual insurance, modernizing the insurance market’s traditionally fragmented infrastructure.
Boris Rapoport, senior partner and co-head of financial services at Vistria Group, said: “A key part of Vistria’s financial services strategy is to focus on partnering in important regulated markets where expertise and infrastructure drive performance, and this investment reflects many years of efforts around the development of the specialist MGA market.”
Adding: “We believe specialty MGAs are increasingly well-positioned as carriers seek focused underwriting partners with data-driven infrastructure and strong distribution relationships, and Lumen exemplifies this model.”
“Scott and his team have built a rigorous platform with scale and clarity,” said Mike Castleforte, senior partner and co-head of financial services at Vistria Group. “Lumen’s proprietary technology, rigorous underwriting and diversified distribution network provide a strong foundation for continued growth.”
Upon completion of transaction, multiple executives will be added to the board of directors
announcement.
These include: Albert Benchimol, former CEO of AXIS Capital, a global leader in specialty insurance; Mark Smith, former president of K2 Insurance Services, a leading private equity-backed specialty MGA; and Brian McDermott, former chief information officer of Victor Insurance, a global MGA focused on property and casualty.
“Collectively, these advisors bring decades of underwriting, underwriting, capital markets and operational experience to inform Vistria’s investment decisions and will continue to support Lumen’s growth as a scaled specialty insurance platform,” the company said.
Piper Sandler & Co. served as Lumen’s exclusive financial advisor for this transaction, and Choate Hall & Stewart LLP served as Lumen’s legal advisor.
Instead, MarshBerry serves as Vistria’s exclusive financial advisor, and Vistria is represented by Winston & Strawn LLP as legal counsel.
