Titan Capital Partners has launched a $100 million global fund that invests in fundraising rounds and secondary ownership in firms and funds.
Titan has many co-investment structures through which it plans to spend $100 million to $200 million over the next three years.
Titan was founded in late 2021 by Ben Topor and Omer Schloss joined him as a senior partner. The fund commenced operations following an initial closure, with its main fund aiming to manage $100 million and a series of side funds co-investing with its primary vehicle.
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Titan has welcomed the family offices of five billionaires from Israel, the United States, England, Australia, and South Korea, as well as the wealth management units of three major investment banks from the United States, Switzerland, and the United Kingdom.
Since its closing, the group has made a $14 million investment in Verbit.AI, Israel’s fast-growing tech company, in which Titan both invested primary and secondary capital. The fund is expected to execute between 10 and 15 transactions, with an investment of up to $15 million per transaction.
The Fund focuses primarily on software and Internet companies raising Round B and above and has a rigorous financial investment criterion that includes companies that demonstrate excellent financial performance of at least $10 million in sales and at least 80% annual growth. “We are very selective about which companies we team up with and examine them for objective financial results that are hard to hide,” Topor said.
According to Titan, the Israeli high-tech sector is maturing, as is the need for sophisticated financial solutions among Israeli entrepreneurs.
The Titan Fund intends to aid them in establishing the worldwide linkages necessary in the financial markets to seek strategic late-stage funding and acquire other companies.
Additionally, through its secondary program, Titan intends to satisfy the liquidity needs of its stockholders. Secondary transactions are an essential instrument for realigning and balancing shareholder bases.
As organizations remain private for a more extended time, there are increasing conflicts of interest between shareholders and management, as each represents a separate foundation with a different life cycle.
Different investors exert contradictory demands on the CEO and founding team, putting them under pressure to sell too soon. Secondary transactions allow for the internal alignment of these interests.
Titan has invested both main and secondary capital in Verbit.AI, Israel’s fastest-growing technology startup, totaling $14 million since its closing. It is anticipated that the fund would execute between 10 and 15 deals, investing up to $15 million in each transaction. The Fund focuses largely on software and Internet firms that are generating at least Round B capital and has stringent financial investment requirements that include companies with at least $10 million in sales and yearly growth of at least 80 percent. We are quite picky about the firms we partner with, and we scrutinize them for objective financial outcomes that are difficult to conceal.
Ben Topor began his career at one of Israel’s leading investment banks, where he built active investment banking teams, raising approximately 35 funding rounds for Israeli entrepreneurs, before becoming a managing partner at the Catalyst Fund.
Topor oversaw deals at BlueVine and Trax Retail, both of which achieved unicorn status. In addition to Topor, the Titan squad has various secondary growth and backgrounds.
Omer Schloss, who has worked with CP Group in London for the previous six years in the field of private equity, has joined as a senior partner. The fund features two more New York and Los Angeles-based partners who formerly worked at Coller Capital, LGT, Morgan Stanley, and other firms.
Titan’s worldwide staff is able to invest in companies and funds regardless of location, with a focus on Israel to take advantage of its proximity to the market.
International relationships are the extra value that Titan delivers to enterprises. The fund works with portfolio companies such as management consulting firms; the fund provides an action plan that includes the names of 30 to 40 strategic relationships that Titan wishes to introduce to the entrepreneurs after investing, as well as a proposed timetable describing when Titan will assist its portfolio in connecting with these entities.
Ben Topor, founder of the Titan fund: “Access is the key to success in venture capital.” Our structuring flexibility and mix of investments in both company and fund vehicles is a key market force multiplier that enables our limited partners (LPs) to obtain exposure to the greatest firms – the Titans – in an efficient and timely manner. We do not speak but do. Due to the group’s personal relationships in the United States and the major LP investors in the fund, we have the capacity to ask and persuade global investment giants to join our firms, therefore maximizing the value of these targets.
Topor asserts that the secondary market in Israel functions in an archaic manner. “Of the 440 active funds in Israel, there are only two pure-play secondary funds, both of which use outmoded sourcing and thought processes. They are passive and have stringent valuation standards that restrict their adaptability. We, on the other hand, do an updated appraisal of the firm and do not only depend on the valuation from the previous round. Once we get the essential information, we reach a conclusion within two to three days. Importantly, the fund’s partners provide value to firms and funds on a personal level and do not subcontract responsibilities to junior analysts without personal contacts, expertise, or actual capacity to assist.”