Israel-based Private Equity Fund Managers – January 2014

by Luke Goldsmith

  • 09 Jan 2014
  • PE

According to Preqin’s Fund Manager Profiles there are 85 private equity firms based in Israel. These firms have raised a combined $8bn in capital over the last 10 years and have an estimated $2bn in dry powder. The technology industry is known to be particularly prominent in Israel, with the world’s highest proportion of its population employed in technology-related jobs. Given this, it is no surprise that 92% of the Israel-based private equity firms follow a venture capital strategy, either exclusively or as a part of a wider focus. The majority of these firms invest in the technology sectors such as IT, biotechnology, internet and high-tech.

Firms focused on early stage investing, whether it is start-up, seed or early stage in general, is very common among Israeli private equity firms, with 67% of them focused on this strategy. On the other hand, only 29% of firms focus on expansion/late-stage stage as part of their wider investment strategy and 16% focus on growth. There is further evidence of how hard it is for large investments to occur in the country by the fact that only 6% of firms focus on buyout as an investment strategy.

Tel Aviv has the highest percentage of firms, with 47% of Israel-based fund managers located in the city. The capital is a hub for technology, not just in Israel but across the globe. The city with the second largest amount of firms is Herzeliya which serves as the headquarters for 19% of Israeli private equity firms.

Interestingly, the private equity firm that has raised the most amount of capital in the last 10 years focuses on buyout investments. FIMI has raised $1.6bn in aggregate capital commitments over the past decade. The firm’s last fund was FIMI Opportunity Fund V which raised $820mn. FIMI was founded in 1996 and invests in a variety of selected business sectors including computer software, consumer electronics, communications, automotive, plastics, textiles, metals, water purification and food.

Pitango Venture Capital has raised the most amount of capital over the last 10 years out of any firm whose main strategy is venture capital. Pitango Venture Capital has successfully raised three early stage funds since 2004, totalling $900mn in total capital commitments and surpassing their original targets for two of these vehicles. The firm focuses on the high-tech industry, including networking, semiconductors, life sciences, clean technology, Internet and media sectors.

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