TPG has taken a stake in a $290m single-asset continuation fund centred on Israeli insurtech company Earnix, in a deal led by Jerusalem Venture Partners (JVP) which first invested in the business in its early stages, according to a report by Bloomberg.
JVP will remain general partner of the new vehicle with TPG, Insight Partners and other private investors coming in as limited partners, following approval of the structure by US regulators earlier this month. The deal lifts JVP’s ownership of Earnix to more than 54%.
The continuation vehicle offered JVP’s earlier LPs the option to cash out or roll over. Some investors who chose to exit realised close to a ninefold return, according to JVP.
Continuation funds, once a niche strategy, have become increasingly mainstream as private equity managers look to extend hold periods on their strongest assets while offering liquidity to early backers.
Earnix, founded in 2001, provides AI-driven analytics software that enables insurers and banks to deliver personalised financial products. The company was valued at $1bn in a 2021 financing round and now generates more than $100m in annual recurring revenue, with ambitions to reach $300m in the coming years.
