Lightyear Capital LLC said Tuesday it completed the sale of Paradigm Acquisition Corp. to Summit Partners. Financial terms weren’t announced. Walnut Creek, California-based Paradigm provides outsourced catastrophic workers’ compensation case management services for insurance companies and self-insured employers.
New York, NY, June 2, 2015 – Lightyear Capital LLC, a financial services private equity firm, today announced that it has completed the sale of Paradigm Acquisition Corp., the largest nationwide provider of outsourced catastrophic workers’ compensation case management services for insurance companies and self-insured employers, to affiliates of Summit Partners. Lightyear’s affiliated investment funds acquired Paradigm in February, 2012. Terms of the transaction were not disclosed.
Founded in 1991 and headquartered in Walnut Creek, California, Paradigm has more than 270 employees and case managers and has created a highly differentiated business model which is designed to dramatically improve clinical outcomes for injured workers and significantly reduce claims costs for workers’ compensation insurance providers.
“We are very pleased with the outcome of this investment in Paradigm,” said Donald B. Marron, Chairman and Founder of Lightyear. “Under Lightyear’s ownership, Paradigm’s management successfully positioned the firm for the future with strong revenue and EBITDA growth in the three years we have owned the business.”
Mark F. Vassallo, Managing Partner of Lightyear, said, “Our investment in Paradigm is a great case study of how we work with companies to develop and grow them. Paradigm is well positioned to continue its growth trajectory and market leadership under new ownership.”
About Lightyear Capital LLC
Lightyear Capital LLC is a financial services-focused private equity firm based in New York. Lightyear, through its three affiliated private equity funds, has raised over $2.5 billion of capital and makes primarily control investments in North America-based, middle-market financial services companies. Lightyear targets investments across the financial services spectrum, including asset management, banks, brokerage, financial technology, insurance, and specialty finance. The firm brings strengths and discipline to its investment process, as well as operating, transaction, and strategic management experience, along with significant contacts and resources beyond capital. For more information, please visit www.lycap.com.