#Israel #Tel Aviv #Phoenix Financial #Centerbridge #Gallatin Point

Phoenix Financial Expands Ownership Base

In a significant financial maneuver, Phoenix Financial Ltd., a prominent Israel-based company specializing in asset management and insurance, has completed the acquisition of shares from its former controlling shareholders, Centerbridge Partners and Gallatin Point Capital. This transaction, which took place over a period of six months from July 2024 to January 2025, resulted in top-tier international investment funds and local institutions acquiring a substantial portion of the company’s shares.

The completion of these transactions marks a transformative period for Phoenix Financial, which has shifted the ownership landscape of the company. Centerbridge and Gallatin Point sold nearly 31% of Phoenix’s stock, leading to a reinvigorated shareholder network comprising both international and Israeli investors. With almost 10% of the shares acquired by Affinity Partners, international investors now comprise over 30% of Phoenix’s total shareholding—a clear indicator of the growing confidence in the company’s performance and future prospects.

A Stronger Financial Future

The recent changes in ownership reflect the thriving business environment at Phoenix Financial, which continues to post strong financial results. In November 2024, the company revealed impressive growth, particularly in profit margins, driven by strategic adjustments and an expanding market share. The firm's management has set an ambitious target of achieving Comprehensive Income of NIS 2 billion while enhancing dividend distributions as a result of ongoing market growth.

Benjamin Gabbay, Chairman of Phoenix, and Eyal Ben Simon, the CEO, expressed their gratitude towards Centerbridge and Gallatin for their supportive partnership over the past five years. They emphasized how these strategic transactions have not only diversified Phoenix's shareholder base but have also solidified its position as a leading player in Israel's financial services sector. They stated, "With their successful exit, Phoenix Financial has emerged stronger than ever, with a diversified ownership structure that reflects growing confidence in our company."

The former shareholders commended the company's progress, noting that the strategic vision of the board and management has led to significant growth and enduring value creation. Centerbridge and Gallatin Point orchestrated their exit, aiming to leave Phoenix in a robust position, which they have successfully accomplished—a testament to their management strategy and operational execution.

Confidence in the Israeli Market

Jared Kushner, CEO of Affinity Partners, highlighted the resilience of the Israeli economy as a vital factor in his investment decision. The surge in Phoenix’s stock value over the past six months is evidence of the firm’s sound business fundamentals. He mentioned, "Our investment in Phoenix represents a promise for a prosperous future, and we are committed to building a thriving enterprise within the region."

Phoenix Financial operates under a multi-faceted model that encompasses a range of financial services, including insurance, asset management, and credit provisions. With an impressive portfolio totaling approximately $140 billion in assets, the firm connects with a significant portion of Israeli households, demonstrating its vital role in the local economy.

The shift in ownership can serve as a catalyst for further advancements and improvements in Phoenix’s operations. With a broadened investor base, the company anticipates being better positioned to capitalize on new market opportunities that arise in the evolving economic landscape. As Phoenix Financial embarks on this new chapter, it reaffirms its commitment to delivering exceptional results for its stakeholders and clients and solidifying its status as a leading entity in the financial services market in Israel.

Conclusion

Overall, the acquisition of the remaining shareholding from Centerbridge and Gallatin Point highlights a pivotal moment for Phoenix Financial as it embraces a diversified ownership structure and prepares for sustained growth. With the backing of international investors, the company's leadership perceives this transition as not only a milestone in its journey but a clear indication of its potential for future success in the ever-changing financial landscape.