The Latest Private Equity News Israel

Latest Private Equity News Israel: Insights and Updates

Private equity in Israel has seen a surge in activity in recent years, with a record $3.26 billion invested in the first nine months of 2016 alone.

This figure outstripped the $3.22 billion invested in all of 2015, highlighting the growing interest in the country's private equity landscape.

One of the driving forces behind this growth is Israel's highly developed legal system, which provides a solid foundation for private equity investments.

This, combined with the availability of local financing and an expanding pool of technology-based targets, has helped position Israel as a key player in the global private equity market.

As private equity continues to gain momentum in Israel, it's important to stay up-to-date with the latest news and trends in the industry. From major deals and transactions to insights on technology and media investments, keeping abreast of the latest developments can help investors make informed decisions and stay ahead of the curve.

Key Takeaways

• Israel's private equity landscape has seen significant growth in recent years, with record investments in 2016.

• The country's highly developed legal system and expanding pool of technology-based targets has helped position it as a key player in the global private equity market.

• Staying up-to-date with the latest news and trends in Israeli private equity can help investors make informed decisions and stay ahead of the curve.

Private Equity Landscape in Israel

Israel has emerged as a hub for private equity (PE) investments in recent years, with a growing number of funds and investors seeking opportunities in the country. The highly developed legal system, availability of local financing, and expanding pool of technology-based targets have contributed to Israel's success in attracting PE investments.

According to a report by PitchBook, 24 PE transactions closed in Israel in the first half of 2020, with a total value of USD 2.9 billion. This represents a year-on-year increase of 48.3% in the number of transactions and a 16.2% increase in total value. The report also highlights the growing interest of general partners (GPs) in Israel's PE space.

The Israeli private equity landscape is diverse, with funds of various sizes and strategies. Some of the notable PE funds operating in Israel include:

• Pitango Venture Capital, which focuses on early-stage technology investments

• Vintage Investment Partners, which invests in growth-stage companies

• FIMI Opportunity Funds, which specializes in distressed and turnaround situations

• Viola Growth, which invests in Israeli and Israeli-related technology companies

In addition to local funds, Israel has also attracted investments from global PE firms such as KKR, Apax Partners, and Warburg Pincus.

Israel's technology sector has been a key driver of PE investments in recent years. The country is home to a large number of startups, particularly in areas such as cybersecurity, artificial intelligence, and fintech. According to a report by The Times of Israel, private equity investment in Israeli firms surged to a record USD 3.26 billion in the first nine months of 2016, with technology companies accounting for a significant portion of the investments.

In summary, Israel's PE landscape is dynamic and growing, with a range of funds and investors seeking opportunities in the country. The technology sector has been a major driver of PE investments, but there are also opportunities in other sectors such as healthcare, energy, and infrastructure.

Major Deals in Israeli Private Equity

Israel's private equity industry has been witnessing robust growth in recent years, with a number of high-profile deals being announced. Here are some of the major deals in Israeli private equity:

Blackstone's Investment

In 2021, Blackstone, one of the world's largest private equity firms, announced that it had invested $200 million in Israeli cybersecurity company, Snyk. The deal valued Snyk at $4.7 billion, making it one of the most valuable cybersecurity companies in the world. The investment was made through Blackstone's growth equity platform, which focuses on investing in companies with strong growth potential.

Softbank Vision Fund 2's Investment

In June 2021, Softbank Vision Fund 2, the largest technology-focused venture capital fund in the world, announced that it had invested $500 million in Israeli fintech company, eToro. The deal valued eToro at $10.4 billion, making it one of the most valuable fintech companies in the world. The investment was made to support eToro's global expansion plans.

Lightspeed Management Company's Investment

In 2020, Lightspeed Management Company, L.L.C, a leading global venture capital firm, announced that it had invested $60 million in Israeli e-commerce company, Fabric. The deal valued Fabric at $850 million, making it one of the most valuable e-commerce companies in Israel. The investment was made to support Fabric's expansion plans in the US market.

These deals highlight the growing interest of global private equity firms in Israeli companies. The country's strong technology sector, highly skilled workforce, and supportive government policies have made it an attractive destination for private equity investment. With deal values increasing year on year, it is expected that Israeli private equity will continue to thrive in the coming years.

Technology and Private Equity in Israel

Israel has emerged as one of the leading technology hubs in the world, with a thriving start-up ecosystem and a highly skilled workforce. The country's private equity industry has played a significant role in driving this growth, providing funding and support to innovative companies across a range of sectors.

Cybersecurity Investments

One area where Israeli private equity firms have been particularly active is cybersecurity. Israel is home to a large number of cybersecurity companies, many of which have developed cutting-edge technologies to combat cyber threats. Private equity firms have recognised the potential of these companies and have invested heavily in the sector.

According to a recent report, EQT Private Equity made a USD ~100 million growth investment in CYE, an Israel-based leader in cybersecurity and cyber optimisation solutions. This investment is a testament to the strength of Israel's cybersecurity sector and the potential for growth in the coming years.

Cloud Technology Investments

Another area where Israeli private equity firms have been active is cloud technology. The cloud has become an increasingly important part of the technology landscape, with many companies moving their operations to the cloud to take advantage of its scalability and flexibility. Israeli companies have been at the forefront of this trend, developing innovative cloud-based solutions that are in high demand around the world.

One example of a successful cloud technology investment in Israel is the 2020 acquisition of CloudEndure, an Israeli cloud migration and disaster recovery company, by Amazon Web Services (AWS). The acquisition is estimated to be worth around $250 million and is a clear indication of the strength of Israel's cloud technology sector.

Overall, private equity investments have played a crucial role in driving the growth of Israel's technology sector, providing funding and support to innovative companies across a range of sectors. With a highly skilled workforce and a thriving start-up ecosystem, Israel is well-positioned to continue its success in the years to come.

Insight Partners in Israel

Insight Partners, a US-based venture capital and private equity firm, has been making waves in the Israeli tech scene. In 2021, Insight Partners invested in 37 new companies in Israel, nearly three times the number of its investments in 2020, according to the IVC-Gross Investors Report 2021. This makes Insight Partners the most active VC investor in Israel in 2021.

The firm's interest in Israeli tech is not new. Insight Partners opened its first international office in Tel Aviv less than two years ago, with the aim of seeking out Israeli tech firms. Since then, the firm has been transforming Israeli startups into unicorns, with holdings in Israeli unicorns such as JFrog, Sisense, Lightricks, and WalkMe. In late 2021, Insight Partners acquired control of Armis at a $1.1 billion valuation, further cementing its position as the king of Israeli tech.

Insight Partners' success in Israel can be attributed to a number of factors. Firstly, Israel has a thriving tech ecosystem, with a high concentration of startups and a strong culture of innovation. Secondly, Insight Partners has a strong track record of investing in disruptive technologies and helping startups scale. Finally, Insight Partners' presence in Israel has allowed the firm to build strong relationships with local entrepreneurs, venture capitalists, and other key players in the Israeli tech scene.

Overall, Insight Partners' success in Israel is a testament to the strength of the Israeli tech ecosystem and the firm's ability to identify and invest in promising startups. As the firm continues to expand its presence in Israel, it is likely to remain a major player in the Israeli tech scene for years to come.

Private Equity Transactions Analysis

Private equity transactions in Israel have been on the rise in recent years, with a total of $316 million invested in 24 transactions in the first quarter of 2017 alone, according to The Times of Israel. This trend is expected to continue as Israel's economy continues to grow, attracting more foreign investment.

Private equity funds in Israel are dominating the market in smaller investments, while global players are taking on larger deals. For example, KKR's buyout of Alliance Tires for $500 million in 2013 was one of the largest private equity deals in Israel, while Mobileye's buyout by a syndicate of non-Israeli investors for $400 million was another significant transaction, as reported by Practical Law.

Private Equity News Israel

Private equity investments in Israel are often made in the technology sector, which is a major driver of the country's economy. Israel's highly developed legal system, availability of local financing, and expanding pool of technology-based targets have helped the region post its best first-half PE deal figures in over a decade, as reported by PitchBook.

In terms of analysis, private equity firms in Israel are focused on finding companies with high growth potential and attractive valuations. They are also looking for companies that have a strong management team and a clear path to profitability. Private equity firms often use a variety of metrics to evaluate potential investments, including earnings before interest, taxes, depreciation, and amortization (EBITDA), revenue growth, and market share.

Data is also an important factor in private equity transactions in Israel. Firms use a range of data sources to evaluate potential investments, including financial statements, market research reports, and industry benchmarks. They also use data to monitor the performance of their portfolio companies and identify areas for improvement.

Private equity transactions in Israel are typically analyzed over a long-term period, with firms looking to hold their investments for several years before exiting. This allows them to maximize their returns and create value for their investors. Private equity firms in Israel often work closely with their portfolio companies to help them achieve their growth objectives and improve their operations.

Overall, private equity transactions in Israel are an important driver of the country's economy, attracting foreign investment and fueling growth in the technology sector. Private equity firms in Israel are focused on finding companies with high growth potential and using data and analysis to evaluate potential investments over the long term.

Media and Telecom Investments

Israel's media and telecom sector has seen significant private equity and venture financing activity in recent years. According to GlobalData, there were 390 deals in the technology, media, and telecom sector of Israel in the last twelve months, resulting in a total deal value of over $13.1 billion.

Artificial intelligence and cybersecurity were the two most significant drivers of private equity and venture financing deals in the media and telecom sector of Israel. GlobalData reports that 124 deals driven by artificial intelligence resulted in a total deal value of over $3.8 billion, while 61 deals driven by cybersecurity resulted in a total deal value of over $3.1 billion.

One notable investor in Israel's high-tech sector is Telefonica, a Spanish telecommunications company. In May 2022, Telefonica announced that it would turn to Israel's high-tech sector to boost its consumer portfolio. Telefonica's WayraX has taken stakes in 12 Israeli companies since it began at the end of 2020 and plans to reach 20 by the end of 2022.

Israel's media and telecom sector has also seen significant investment from Chinese companies. In 2021, Chinese tech giant Tencent led a $145 million funding round for Israeli video editing start-up InVideo. Tencent has also invested in Israeli companies such as mobile game developer Plarium and autonomous driving technology company Nexar.

Overall, Israel's media and telecom sector continues to attract significant private equity and venture financing, driven by artificial intelligence and cybersecurity. Investors such as Telefonica and Tencent are betting on the sector's potential for growth and innovation.

OurCrowd and Israeli Private Equity

OurCrowd has emerged as one of the most active venture investors in Israel, having reached $2 billion in investment commitments as of November 2022 [1]. The Israeli-based global venture firm has been recognized as the most active venture investor in Israel for nine years in a row, according to PitchBook [2].

Israel has been experiencing record-breaking growth in its venture capital industry, with VCs pouring $7.45 billion into Israeli startups in the first nine months of 2021 alone, an increase of 49% from the previous year [2][3]. Much of this growth has come via late-stage rounds, with over two-thirds of the total funding going to companies in later stages of development [3].

Private Equity News Israel

OurCrowd has been a major player in this growth, with a portfolio of over 250 companies across a range of sectors, including cybersecurity, healthcare, and agriculture [1]. The firm has also been actively involved in promoting global health equity, having partnered with the World Health Organization Foundation to launch a $200 million equity fund that will invest in companies focused on improving healthcare outcomes in underserved communities around the world [4].

Overall, OurCrowd's success in the Israeli venture capital industry is a testament to the strength and diversity of Israel's startup ecosystem. With a track record of successful investments and a commitment to promoting social impact, the firm is poised to continue playing a leading role in shaping the future of Israeli private equity.

[1] Forbes. "Israel's Most Active Venture Investor OurCrowd Reaches $2 Billion Investment Commitments." https://www.forbes.com/sites/gilpress/2022/11/09/israels-most-active-venture-investor-ourcrowd-reaches-2-billion-investment-commitments/

[2] PitchBook. "OurCrowd tops list of 2021's most active VCs in Israel." https://pitchbook.com/news/articles/top-vc-investors-in-israel-2021

[3] Business Wire. "Pitchbook: OurCrowd is Israel's Most Active Venture Investor Nine Years in a Row." https://www.businesswire.com/news/home/20211007005503/en/Pitchbook-OurCrowd-is-Israel%E2%80%99s-Most-Active-Venture-Investor-Nine-Years-in-a-Row

[4] The Times of Israel. "OurCrowd, WHO Foundation roll out $200m global health equity fund." https://www.timesofisrael.com/ourcrowd-who-foundation-roll-out-200m-global-health-equity-fund/

AnyVision Interactive Technologies Ltd

AnyVision Interactive Technologies Ltd is an Israeli-based company that specializes in developing facial recognition technology. The company has recently raised $235 million in a funding round led by SoftBank Vision Fund 2 and Eldridge. Other investors include DFJ Growth, Qualcomm Ventures, and M12 - Microsoft's venture fund.

The funding will be used to accelerate the growth and development of AnyVision's software, which is used for security and surveillance purposes. The company's technology is already being used by airports, banks, and police departments around the world.

AnyVision's facial recognition technology has been the subject of controversy due to concerns over privacy and potential misuse. The company has stated that it is committed to ethical and responsible use of its technology, and has implemented measures to prevent misuse.

In addition to its facial recognition technology, AnyVision also offers other AI-based solutions such as object recognition and tracking, and crowd analytics. The company has partnerships with several major tech companies, including Qualcomm and Microsoft.

Overall, AnyVision Interactive Technologies Ltd is a leading player in the facial recognition technology market, with a strong focus on ethical and responsible use of its technology. With the recent funding round, the company is well-positioned to continue its growth and development in the coming years.

Eldridge Industries LLC and Israeli Private Equity

Eldridge Industries LLC is a private investment firm that has been making waves in the Israeli private equity market. The company has recently received a $1.36 billion equity investment from a partnership owned substantially by Swiss businessman and philanthropist, Hansjörg Wyss, and Eldridge Co-Founder, CEO and controlling-member, Todd Boehly.

Private Equity News Israel

Eldridge Industries LLC has been involved in various private equity deals in Israel, including the acquisition of NPC Restaurant Holdings LLC, which operates over 1,200 locations of Yum! Brands Inc.'s Pizza Hut and close to 400 Wendy's restaurants across the U.S. NPC International filed for Chapter 11 bankruptcy as it struggled amid the coronavirus pandemic, but Eldridge Industries LLC has been working to turn the company around.

Eldridge Industries LLC has also been involved in the Israeli technology, media, and telecom sector. In the last twelve months, the company has been a part of 124 Private Equity/Venture Financing deals (pending and completed) in the sector, driven by Artificial Intelligence, resulting in a total deal value of over $3,819.3 million.

Overall, Eldridge Industries LLC has been a major player in the Israeli private equity market, with a focus on the technology, media, and telecom sector, as well as the restaurant industry. With its recent equity investment, the company is poised to continue its growth and impact in the Israeli private equity market.

Conclusion

Private equity investment in Israel has been on the rise in recent years, with 2020 seeing some of the best first-half figures in over a decade. However, investment in Israeli tech startups plunged by almost half in 2022, according to recent data. Despite this, private equity funds continue to raise significant amounts of capital, with around US$2 billion raised by Israeli private equity funds between 2003 and 2007 alone.

Private Equity News Israel

Insight Partners, a New York-based private equity and investment firm, has been the most active VC foreign investor in Israeli companies in 2022, participating in 40 deals. This highlights the importance of foreign investment in the Israeli private equity market.

Israel's highly developed legal system and availability of local financing have been key factors in attracting private equity investment to the region. However, major concerns about Israel's economy have led global investors to question the money they have invested in the country. Massive protests have intensified in recent weeks as Israel's parliament faces a potential collapse.

Overall, while the Israeli private equity market has seen its fair share of ups and downs, it remains an attractive destination for investors. With a highly skilled workforce and a thriving tech sector, Israel is well-positioned to continue to attract private equity investment in the years to come.

The Latest Private Equity News Israel