#Israel #Tel Aviv #Carlyle #Coller Capital #StepStone

Investment Surge in Israel

In a significant development for the Israeli investment landscape, three international funds have successfully secured over 1.5 billion shekels (approximately $420 million) exclusively from qualified private investors. This fundraising was led by Value Advanced Investments, which managed to connect prominent global funds—Carlyle, StepStone, and Coller Capital—with motivated local investors.

Growth in Alternative Investments

This initiative showcases a broader trend among qualified private investors in Israel who are increasingly turning to private capital markets. The growing volume of investments is part of a strategic shift aimed at countering the prevailing 'home bias,' characterized by a heavy preference for local investments. The influx of funds aims to enhance diversification, granting investors access to the expansive opportunities within the global markets.

Over half of the funds raised from Israeli investors were allocated to secondary strategy funds. These funds provide a unique investment avenue where managers can acquire stakes in existing private funds, facilitating a smoother liquidity solution for traditionally illiquid investments. The emphasis on secondary markets highlights the rising demand for flexible investment options amid tough economic conditions.

Highlights of Participating Funds

1. Carlyle's Direct Lending Fund (CDLF): Specializes in the private debt sector, harnessing capital to lend directly to well-performing companies requiring immediate liquidity.
2. StepStone's SPRIM Fund: Integrates multiple investment strategies, pivoting mainly on private equity with secondary market focus while also encompassing co-invests and exposure to real assets like real estate.
3. Coller Capital's Coller IX: Distinctively targets the private equity secondary market, positioning itself as a pivotal player in executing transactions within this realm.

The Role of Value Advanced Investments

According to Inbar Steiner, the Managing Partner at Value Advanced Investments, the robust fundraising achievement reflects a palpable desire among Israeli investors to access alternative investments devoid of local market constraints. Not only does this progression allow for better exposure to international markets, but it also enables lower minimum investment thresholds, helping individuals participate more actively in the private fund arena.

As funds typically demand high minimum investments (often in the millions), Value Advanced Investments bridges this gap by establishing feeder funds. This structure aggregates numerous individual investors into a single fund, drastically reducing the per capita investment requirement down to approximately $250,000. Such an approach presents a more palatable entry point to high-caliber global funds that were previously beyond reach.

Secondary Market Dynamics

The growing emphasis on secondary market strategies is crucial, particularly in the challenging economic environment characterized by rising interest rates and public market volatility. The secondary market acts as a vast ecosystem where liquidity is provided through the purchase and sale of private fund stakes. This market is especially vital during periods when economic conditions tighten, offering investors alternative liquidity solutions.

Future Outlook

Despite these formidable investments, Value Advanced Investments foresees further potential growth in this sector. The persistent influx of capital towards alternative investments showcases a shift in private investment strategies, indicating a long-term trend rather than a fleeting measure.

Furthermore, with Viola Credit's ALF III Fund recently entering the scene, demand for debt sector investments continues to heighten. This fund, already generating substantial interest among qualified private investors, underscores the evolving investment preferences within Israel's investor community.

Conclusion

As the investment climate shifts, Israeli investors are increasingly seeking opportunities beyond local markets. The successful fundraising efforts led by Value Advanced Investments reflect a growing appetite for global exposure and diversification amid a volatile market environment. With infrastructure in place to facilitate this trend, the future looks promising for private investments in Israel.

According to industry experts, this momentum is set to continue, fostering a more interconnected and diversified investment landscape that empowers Israeli investors to seize global opportunities.

For more information, visit Value Advanced Investments and explore their offerings designed specifically to cater to the unique needs of Israeli investors seeking alternative investments.