Israel Secondary Fund (ISF) has closed 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 Israeli institutional investors in the fund include Halman Aldubi, Altshuler Shaham, Bank Hapoalim, Poalim IBI Underwriting and Investments Ltd. and Union Bank of Israel . ISF II has already completed four investments from the new fund.
ISF is a secondary fund focused on the Israeli market, which provides liquidity to the private equity and venture capital market through purchasing interests in funds and direct holdings in private companies.
ISF engages in the full spectrum 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, Nir Linchevski, and Shmuel Shilo manage the fund.
ISF has raised ISF II following the success of its inaugural fund, ISF I, which was founded in 2009.
ISF I has 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., the IPO of SolarEdge Technologies Inc. and the acquisition of SuperDimension by Covidien Ltd.
Other exits include the acquisition of PrimeSense Ltd. by Apple Inc.; the IPO of Enzymotec; the sale of WorkLight to IBM Inc.; the sale of RedBend Software to Harman and the acquisition of Altair Semiconductor Ltd. by Sony Corporation.
ISF managing partner Dror Glass 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.”