About Lexington Partners

• Founded: 1994

• Headquarters: New York, United States

• AUM: $75bn as of 2024

• Strategy: GP-led secondaries, single-asset continuation vehicles, LP portfolio acquisitions

• Track record: Pioneered single-asset continuation vehicle market in mid-2010s; closed $22bn Fund X in 2022, largest secondaries fund at the time; completed over $140bn in secondary transactions since inception

• Leadership: Managing partners Bret Ginsberg and Jim Strang; founder Robert Long transitioned to advisory role in 2021

Lexington Partners structured a $460m single-asset continuation vehicle for SageSure, an insurance managing general underwriter held by Flexpoint Ford. The transaction allowed existing limited partners in Flexpoint Ford's fund to either roll their interests into the new vehicle or exit at the valuation. Lexington anchored the new capital, providing liquidity to exiting LPs while extending the hold period for SageSure.

The deal reflects sustained demand for insurance sector assets in the GP-led market, where underwriting platforms have drawn premium pricing over the past 18 months. Lexington closed a $3.2bn single-asset CV for Duck Creek Technologies in late 2023 and led a $1.1bn transaction for insurance technology provider Majesco in early 2024, both sourced from financial services-focused sponsors. Insurance software and MGA platforms have offered predictable cash flows and defensible market positions, attributes that secondary buyers have been willing to pay up for even as broader continuation vehicle pricing has compressed. The sector concentration creates execution risk if underwriting cycles shift—secondary buyers are effectively underwriting both the asset and the sponsor's timing call on an eventual exit.

Source: AltAssets