BOSTON & BELLEVUE, WA — December 18, 2025 — Ethos Capital LP, the private equity firm behind domain registry operator Identity Digital, has completed a continuation vehicle transaction that introduces new institutional investors into the business while providing liquidity options to existing fund investors.
The transaction enables Ethos Capital to transfer its ownership stake in Identity Digital from an older investment fund into a newly formed continuation vehicle. Existing limited partners were given the choice to either cash out their positions or roll their interests forward, while new institutional capital was brought in to support the company’s next stage of growth.
Among the new investors participating in the continuation vehicle is TPG GP Solutions, alongside other institutional backers, underscoring continued confidence in Identity Digital’s long-term value and strategic importance within the global domain name ecosystem.
A Strategic Capital Structure for a Long-Term Asset
Continuation vehicles have become an increasingly common tool in private equity, particularly for high-quality assets where managers believe additional time and capital can unlock further value. The structure allows general partners to maintain ownership and operational continuity while refreshing the investor base and extending the investment horizon.
For Identity Digital, the transaction reinforces financial stability while preserving leadership continuity and long-term strategic alignment between the company and its shareholders.
Identity Digital — formerly known as Donuts Inc. — is one of the world’s largest domain registry operators, managing a substantial portfolio of generic top-level domains (gTLDs) and providing registry services to internet users, businesses, and organizations globally. The company plays a critical role in the infrastructure that supports digital identity, branding, and online presence.
Supporting the Next Phase of Growth
Ethos Capital acquired control of Donuts in 2021 and later rebranded the company as Identity Digital, reflecting a broader vision around internet identity services. Since then, the company has continued to invest in registry operations, partnerships, and technology supporting the global domain name system.
By executing the continuation vehicle, Ethos Capital signals its intention to remain a long-term steward of the business rather than pursuing a near-term exit. The refreshed capital structure positions Identity Digital to pursue additional opportunities across registry services, domain innovation, and adjacent digital identity solutions.
The transaction also reflects broader trends in private markets, where continuation vehicles are increasingly used to balance liquidity needs with conviction in portfolio company growth prospects.
Industry Implications
For the domain industry, the move highlights the growing institutionalization of core internet infrastructure assets. As domain registries continue to generate predictable cash flows and play a foundational role in the global digital economy, they remain attractive to long-term capital seeking stable returns.
The successful execution of this transaction underscores Identity Digital’s position as a durable, strategically important platform within the domain name ecosystem — and Ethos Capital’s confidence in its continued expansion.
Sources
- Domain Name Wire — Ethos Capital brings new investors into Identity Digital via continuation vehicle (Dec. 18, 2025)
https://domainnamewire.com/2025/12/18/ethos-capital-brings-new-investors-into-identity-digital-via-continuation-vehicle/ - Domainers Magazine — Ethos Capital brings new investors into Identity Digital via continuation vehicle (Dec. 18, 2025)
https://domainersmagazine.com/index.php/2025/12/18/ethos-capital-brings-new-investors-into-identity-digital-via-continuation-vehicle/ - MarketWatch — Ethos Capital completes continuation vehicle for Identity Digital (Dec. 18, 2025)
- Identity Digital — Company background and registry portfolio overview
