The Challenge
How can private equity firms best expand their portfolio with investments in digital identity landscape leaders?
Great Hill Partners, a private equity firm, has deep growth investing experience across the cybersecurity, compliance, and fintech sectors. Looking for new opportunities to scale and invest in tech-enabled companies, Great Hill partnered with Liminal to explore the identity and document verification segment of the digital identity landscape. To establish targets in line with their investment strategy, Great Hill engaged Liminal to perform due diligence of Jumio, a provider of AI-powered identity verification and electronic Know Your Customer (eKYC) solutions. As part of the engagement, Liminal partnered with Equifax to evaluate broader market dynamics, a competitive assessment of market dynamics, competitive benchmarking across the target’s product portfolio, adoption of cross-vertical use cases, and plausible post-acquisition growth opportunities.
The Action
Target Use Cases, Performance & Growth Opportunities
The growth of market opportunities continue to be driven by the increased reliance on digital onboarding, further dependence on transaction assurance for digital banking and payment activities, increasing fraud attacks, and continued growth of digital device adoption. In the second phase, Liminal evaluated the supply and demand economics of data attributes associated with identity verification to identify growth opportunities and outline areas of expansion.
Over the course of the engagement, Liminal collaborated with Great Hill’s deal team on:
- Market Dynamics & Competitive Benchmarking
- Target Use Cases, Performance & Growth Opportunities
Market Dynamics & Competitive Benchmarking
In the initial phase, Liminal provided a detailed assessment of the market dynamics for the identity verification and KYC solution segments. Growing regulatory requirements strengthen demand for strong customer authentication (SCA), Know Your Customer (KYC), and Customer Due Diligence (CDD) for both financial and non-financial industry verticals. As a result of our industry intelligence report, our client received proprietary expertise on Jumio’s competitive position, market attractiveness, top-line growth opportunities, and potentially disruptive risks. Leveraging Liminal’s Expert Advisory Network, our team also performed Voice of the Customer interviews with targeted customer segments to establish purchase criteria, user sentiment, product stickiness, and addressable product gaps. To evaluate the breadth of Jumio’s product suite, Liminal assessed Jumio’s KYX platform and proprietary technology to highlight technical differentiators across machine learning, developer support, data pipes, and APIs/SDKs.
The Outcome
As a result of the engagement, Great Hill Partners made a strategic investment of $150M in Jumio to automate its identity verification solutions, expand the breadth of Jumio’s KYX Platform, and to grow its suite of AML compliance services. View the full press release here.
