G.P. Private Equity Firms Fund efinanceworks –

Intending to couple the two firms’ skills in late-stage private equity deals and simutaneously capitalize on the burgeoning e-finance sector, General Atlantic Partners and Capital Z Partners have combined to commit $300 million to the formation of efinanceworks LLC.

“As we each looked at this sector, neither firm had the expertise to move down [to early-stage investing],” said Adam Mizel, a partner at Capital Z. “But in combining our expertise with management teams, we felt we could create a new business.”

efinanceworks will act as an early-stage business accelerator that partners at both firms said would provide entrepreneurs with access to capital, industry knowledge and infrastructure. The new entity will support the development of e-finance-focused businesses that originate as entrepreneur-proposed ideas, pre-existing early-stage e-finance companies, business initiatives founded by major financial institutions and ideas generated internally by efinanceworks.

The firms will also provide early-stage capital to companies that enter the facility in order to allow the management team to focus on developing the business.

“We will try to develop businesses to the point where they can access outside capital from other firms or look to an IPO,” said Bill Ford, a partner at General Atlantic. “[However,] some of these companies may never be sold. This is an operating company, and we could have 10 divisions of companies that are changing e-finance.”

The company’s first center will be based in New York and is slated to open this summer. Additional facilities based in Hong Kong and London are under development as well.

The growth of financial services online drove the firm’s decision to establish the new organization. General Atlantic’s Ford said as much as $600 billion of the market value represented by U.S. financial services may move online.

“Incubators are more broad-based,” he added. “The notion of this accelerator is a vertical focus that will assemble the right businesses in house.”

Beyond the capital commitments, efinanceworks has also struck service partnerships with McKinsey & Co. and Proxicom. Through these relationships, efinanceworks will provide companies with access to McKinsey’s financial services and e-commerce groups, and Proxicom will place a team of Web developers on site at efinanceworks. In addition, the company stated that it plans to make an investment in efinanceworks.

Cliff Robbins, the former KKR partner who joined General Atlantic late last year, said the accelerator would likely have between five and 10 enterprises in its facility within six months.