Flexpoint Ford, a specialist private equity investment firm, has closed a single-asset continuation vehicle for SageSure, a managing general underwriter (MGU) specialising in catastrophe-exposed markets, with total commitments of over $460 million, including from the General Partner and rollover investors.
Led by Lexington Partners, with participation from Barings and Round2 Investment Partners, this continuation vehicle allows Flexpoint to extend its ownership of a high performing asset.
The firm believes the portfolio company has substantial potential for future value creation, and the transaction offers current investors the choice to either maintain their stakes or secure liquidity.
Since its founding in 2009, SageSure has become one of the largest US property MGU’s, managing $3.2 billion in written premium for over 970,000 policyholders in 16 states.
Flexpoint’s first investment in the company was in May 2023, which helped SageSure to expand its distribution and products, as well as acquire GeoVera, a residential earthquake MGU, and Olympus, a premier mass-affluent residential property MGU in Florida.
“SageSure’s ability to deliver innovative property insurance solutions in coastal markets while maintaining underwriting discipline has resulted in a company that is admired by a diverse group of stakeholders, including policyholders, insurance agents, carrier partners, and reinsurance markets,” said Dominic Hood, Managing Director at Flexpoint.
Chris Ackerman, CEO at Flexpoint, added: “We are excited to continue our partnership with the SageSure management team and believe the company is well-positioned to bring its differentiated underwriting capabilities to more markets and policyholders over the coming years.
“This transaction has allowed Flexpoint to provide the option of liquidity to our existing investors in a high-performing company while welcoming a new group of partners who share our conviction 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’re grateful for the momentum we’ve 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 financial advisor and Kirkland & Ellis LLP served as legal advisor to Flexpoint on the transaction. Simpson Thacher & Bartlett LLP served as legal advisor to Lexington.
