TPG has taken the lead on a $290 million single-asset continuation vehicle for Jerusalem-based venture capital firm JVP. The majority of the funds will be used to buy out early JVP investors who collectively hold about 26% of shares in the insurtech unicorn Earnix. A smaller portion of the funds will support Earnix’s strategic initiatives, including acquisitions and technological development, primarily in artificial intelligence.
Insight Partners, an American fund, will also acquire holdings from existing investors as part of the new round. This reshapes Earnix’s ownership, with JVP set to increase its stake in the company to over 50%. The new fund has attracted investments from several significant players, including Partners Group, HighVista Strategies, Committed Advisors, and Hollyport Capital.
TPG’s involvement underscores the increasing interest of major investors in structured secondary transactions. In 2024, two investors, Vintage and Haim Shani’s IGP, sold their Earnix holdings for approximately $120 million, with JVP and Insight Partners among the buyers. Investors in JVP’s early fund were offered the opportunity to either roll over or realize returns, and many chose to roll over.
Tpg leads new Earnix investment
JVP’s continuation vehicle investors now join JVP’s growth fund investors, such as Hamilton Lane and Lexington Partners, to collectively hold more than 50% of the company. The fund reported that the transaction generated a gross return of 8.7 times for early-stage investors in Earnix.
Earnix raised around $75 million in 2021 at a valuation exceeding $1 billion. Under CEO Robin Gilthorpe, who replaced Udi Ziv in 2023, the company is preparing for a major transformation, including workforce adjustments, as it transitions to AI-driven systems. Operating in more than 35 countries across six continents, Earnix collaborates with over 100 leading insurers and financial services companies, including AXA, Assicurazioni Generali, Tokio Marine, Banco Santander, IAG, and Toyota Financial Services.
Its cloud platform enables real-time decision-making in pricing, underwriting, and personalization of insurance and banking products, driving significant cost reductions and revenue growth. Dr. Erel Margalit, Founder and Chairman of JVP and Chairman of Earnix, said: “I am delighted to partner with TPG, one of the world’s leading investment firms, as they support us in building Earnix into the leading AI platform for the insurance and financial services industries.”
The success of this fund could indicate a trend toward similar financial structures in the future.
The collaboration with prominent investors signals strong confidence in the potential of the assets involved and the strategic planning behind the continuation vehicle.