Among Group 11’s third fund portfolio companies are fintech unicorns Tipalti, TripActions, Next Insurance, HomeLight, and Sunbit
Fintech venture capital firm Group 11 has partnered with StepStone Group, a global private markets investment firm, through a $50M secondary transaction to acquire 27% of Group 11’s third fund. The parties closed the deal directly, without the involvement of any placement agent or investment bank.
The deal enabled investors in Group 11’s third fund (2017 vintage) to realize their positions halfway through the term of the fund. Through this deal, participating Group 11 investors received a 3.25x net cash on cash return, representing a 41% net IRR on their investment.
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Group 11 was founded in 2012 by single General Partner Dovi Frances, with the mission to invest in and empower exceptional entrepreneurs seeking to revolutionize the outdated financial services industry. The firm is an early investor in some of Silicon Valley’s most prominent and disruptive financial technology companies and currently houses a stable of eight unicorns—companies with valuations greater than $1BN. The cumulative value of Group 11’s portfolio stands at approximately $1.6BN, across five funds and multiple Special Purpose Vehicles.
Group 11’s third fund includes investments in Tipalti, which recently raised $270M at an $8.3BN valuation; TripActions, which recently raised $275M at a $7.25BN valuation; Next Insurance, which recently raised $250M at a $4BN valuation; HomeLight, which recently raised $100M at a $1.6BN valuation; and Sunbit, which recently raised $130M at a $1.1BN valuation.
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“We are excited to partner with StepStone on this transaction, which we believe is further affirmation of Group 11’s positioning as one of the nation’s leading fintech VC firms. This is just the beginning of a wonderful and fruitful partnership,” said Dovi Frances, Founding Partner at Group 11.
“We are thrilled to join Group 11 and Dovi Frances in this partnership as we continue constructing the highest quality portfolios to the benefit of our clients,” said Seyonne Kang, Partner at StepStone Group. “Group 11’s track record and portfolio have impressed us, and we look forward to working alongside Group 11 and its management team.”
This deal with StepStone comes months after Group 11 finalized a $200M raise for its Fund V, which was oversubscribed from an initial $100M target raise. Institutional investors in Fund V include Harel Insurance & Finance, More Investment House, Menora Mivtachim Insurance, Migdal Group, and Hachshara Insurance Company.
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