Insurance training Sells some of the holdings in the fundventure capitalGroup 11 of Bear Frances, StepStone, a global investment company specializing in private markets. The sale of a training stake in the fund is part of a $ 50 million deal, in which Stepstone acquires holdings from a number of investors in Group III’s third fund.
The deal allowed investors in Group 11’s third fund, established in 2017, to realize their investments from a relatively early stage in the fund’s life. The investors participating in the transaction received a return 3.25 times higher than the original investment, which represents an annual internal rate of return of 41%.
“Such a large liquidity event in the middle of a venture capital fund’s life is a rare occurrence,” said Roi Kadosh, investment manager at Hachshara Insurance Company, which invested about $ 4 million in the fund in November 2018.
The portfolio of Group 11’s third fund includes Tipalti, which recently raised $ 270 million at a value of $ 8.3 billion; TripActions, which recently raised $ 275 million at a value of $ 7.25 billion; Next Insurance, which recently raised $ 250 million at a value of $ 4 billion; HomeLight, which recently raised $ 100 million at a value of $ 1.6 billion; And Sunbit, which recently raised $ 130 million at a value of $ 1.1 billion.
Group 11 was founded in 2012 by Dobby Frances with the aim of empowering talented entrepreneurs who have set themselves the goal of revolutionizing the financial services industry. The firm has invested in the early stages of some of Silicon Valley’s most prominent financial technology companies. The cumulative value of Group 11’s investment portfolio is approximately $ 1.6 billion. Group 11 is currently starting to raise a sixth fund worth $ 150 million. Since its inception, the firm has invested more than $ 550 million in some of Silicon Valley’s most prominent financial technology companies.
The deal with StepStone closes a few months after Group 11 completed a $ 200 million fundraiser for its fifth fund – twice the original $ 100 million fundraising target. Among the Israeli institutional investors in the Fifth Fund are Harel Insurance and Finance, Mor Investment House, Menora Mivtachim, the Migdal Group and the Hachshara Insurance Company.