Triad Guaranty announced that it has entered into an agreement with Lightyear Capital, a New York-based private equity firm, to fund the creation of a new monoline.
Under the agreement, Lightyear would be the lead investor and Triad Guaranty would not initially have any ownership in the new company. Lightyear and its investor group plan to provide up to $400 million in the new Illinois-domiciled private mortgage insurance company. Certain members of Triad's current management team and many of its employees are expected to join the new company. Triad Guaranty Insurance Corp. would then enter into voluntary run-off, with the new company providing administrative and financial support to facilitate the run-off plan.