Ramzi Musallam.

Veritas Capital raises $270M from Israeli institutions for record $10B defense fund

Local insurers and private investors back the world’s largest defense-focused private equity initiative. 

The ongoing wars in the Middle East and between Russia and Ukraine, as well as tensions between the world's major powers, are providing a significant boost to the defense-tech sector, attracting more players eager to capitalize on the growing demand.
The American private equity fund Veritas Capital recently launched efforts to raise $10 billion for a new defense-tech fund, which is set to become the largest in the world within this field. This marks the firm’s ninth fund to date. Calcalist has learned that in Israel, the fund has already raised approximately NIS 1 billion (approximately $270M), primarily from local institutional investors. Notable contributors include Clal Insurance ($100 million), Migdal Insurance ($60 million), and Menora Mivtachim ($50 million), alongside private investors. According to sources close to the fundraising efforts, the private investors include some of Israel's wealthiest individuals.
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ראמזי מוסאלם מייסד וריטאס
ראמזי מוסאלם מייסד וריטאס
Ramzi Musallam.
(Photo: Jamel Toppin/The Forbes Collection via Contour RA by Getty Images)
Veritas Capital specializes in managing private equity funds using the buyout model, which involves acquiring companies, improving their operations, and eventually selling them to maximize returns for investors. The fund primarily targets sectors that operate at the intersection of government and technology—industries that serve government entities, benefit from government funding, or are influenced by legislation and policy. These sectors include air defense and national security, education, sustainability and infrastructure, and healthcare.
One of Veritas Capital's most significant acquisitions in recent years was the purchase of Perspecta, a provider of services to the U.S. government, for $7.1 billion in 2021.
A Legacy of Success
Founded in 1992 and managed by partner Ramzi Musallam, who is of Jordanian descent, Veritas Capital manages $50 billion in assets across its various funds. In 2023, research firm Preqin named Veritas the world’s top-performing private equity fund in the buyout category.
Initially, Veritas did not focus on a particular sector, but a highly successful investment in Vertex Aerospace—a company that provides engineering services to NASA and other clients—prompted a strategic pivot. The investment yielded over 100% returns for its first fund investors, leading Veritas to specialize in businesses operating at the nexus of the private and public sectors.
Due to its focus on U.S. government-related sectors, Veritas is restricted from raising capital from investors in countries that are not U.S. allies, such as China, to prevent access to sensitive technologies and information. Given the strong ties between the U.S. and Israel, Veritas may view Israel as a strategic target for further fundraising in the future.
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איתי אלנתן מנכ"ל לידר הון פרטי
איתי אלנתן מנכ"ל לידר הון פרטי
Itay Elnatan.
(Photo: Noga Shadmi)
The Defense-Tech Boom in Israel
The fund’s Israeli representative, Leader Private Capital, declined to disclose the names of investors or comment on the fundraising details. However, Itay Elnatan, CEO of Leader Private Capital, which facilitated private investments for Veritas, shared insights with Calcalist:
"In the past year, there has been significant 'buzz' around defense-tech, but not every investment in this sector is a good one. Entities and funds lacking proven experience, government ties, or security clearances may mislead investors while attempting to capitalize on the trend. We are in a challenging yet fascinating period. Israeli institutions have become highly selective about which managers and funds they add to their portfolio of non-tradable assets. Unless an opportunity is exceptional, they prefer to deepen relationships with existing managers they already trust."
Elnatan added: "While the fund has always been in demand, no one could have anticipated the wars in Ukraine and Israel, coupled with rising tensions between superpowers like the U.S., China, and Russia, which have heightened fears of a potential global conflict. International institutions like the United Nations and NATO are also facing challenges, with their influence and ability to prevent conflicts sometimes eroding."
He emphasized that "the development of advanced defense measures, including cyber and AI, is now a top priority. A fund like Veritas, the oldest and largest in the field, is uniquely positioned to leverage these developments for significant growth."