Israel Secondary Fund, ISF II, Closed $100 Million Fund
4 April, 2017
"A larger portion of today's companies stay private for longer periods before going public or being acquired. Therefore, there is a growing need for liquidity in the years preceding an exit."
Israel Secondary Fund (ISF) has completed the closing of ISF II, a $100 million secondary fund. The investors in ISF II include Israeli and global institutional investors, family offices, and high net worth investors. Leading institutional investors in the fund include Halman Aldubi, Altshuler Shaham, Bank Hapoalim (TASE: POLI), IBI (TASE: IBI) and Union Bank of Israel (TASE: UNON). ISF II has already completed four investments from the new fund.
The industry needs a new type of Capital
ISFprovides liquidity to the private equity and venture capital market in Israel through purchasing interests in funds and direct holdings in private companies. It engages in a range of secondary transactions: acquiring limited partner (LP) positions in Israeli venture capital and private equity funds, acquiring direct minority holdings in private companies from investors, founders and other shareholders and structured deals, providing capital to existing venture capital and private equity funds.
Dror Glass, Managing Partner of ISF, said: “Over $30 billion have been invested in Israeli funds and technology companies in the last decade. A large portion of today’s companies stay private for longer periods, and build significant business activity before going public or being acquired. Therefore, there is a growing need by entrepreneurs and investors for liquidity in the years preceding an exit. ISF aims to become the preferred liquidity provider for entrepreneurs, executives and investors in Israel and to be a long-term financial partner for the companies and funds in which ISF invests.”
Behind companies like Waze, SolarEdge and Altair Semiconductor
ISF has raised ISF II following the success of their inaugural fund, ISF I, which was founded in 2009. ISF I held direct and indirect stakes in more than 100 private companies, and has already realized 35 exits. The direct and indirect exits include the acquisition of Waze Ltd. by Google Inc. (NASDAQ: GOOG), the IPO of SolarEdge Technologies Inc. (NASDAQ: SEDG) and the acquisition of SuperDimension by Covidien Ltd. (NYSE: COV). Other exits include the acquisition of PrimeSense Ltd. by Apple Inc. (NASDAQ: AAPL); the IPO of Enzymotec (NASDAQ: ENZY); the sale of WorkLight to IBM Inc. (NYSE: IBM); the sale of RedBend Software to Harman (NYSE: HAR) and the acquisition of Altair Semiconductor Ltd. by Sony Corporation (NYSE: SNE).
Dror Glass, Nir Linchevski, and Shmuel Shilo manage the fund. Dror Glass, Managing Founding Partner of Israel Secondary Fund, has been active in the Israeli secondary market since 2001. Prior to ISF Dror served as a Managing Director at Orama Investments, member of the IDB Group, Investment Manager at Israel Corporation, investment banker at Evergreen and the Executive Director of the Wharton-Recanati Program at Tel Aviv University. Nir Linchevski joined ISF in 2014, after founding and serving as a Partner at the private equity firm Shiraz Investments in 2007-2012 and as Chairman of Altshuler Shaham, an asset management firm with over $15 billion in assets. Prior to that, he served as Managing Director at VantagePoint Capital Partners, a U.S. Venture firm, and was a Partner in the Israeli venture capital firm Formula Ventures. Shmuel Shilo, a Co-Founder of ISF is one of the founders of the Israeli secondary market and served as Managing Partner of Harvest Secondary Fund (Israel’s first secondary fund), managing Harvest Fund I and Harvest Fund II in 1998-2005.
ISF website: http://www.israelsecondary.com/
Photo above: Israel Secondary Fund management team from left to right: Shmuel Shilo, Founding Partner; Dana Ben Yosef, CFO; Dror Glass, Founding Managing Partner; Nir Linchevski, Managing Partner; Josh Scher, Associate