Israel Private Markets Summit“By the end of this decade, Israeli institutional investors’ total AUM should reach $1.4 trillion”
Israel Private Markets Summit
“By the end of this decade, Israeli institutional investors’ total AUM should reach $1.4 trillion”
Itay Elnatan, CEO of Leader Private Capital, offered insights about the years ahead in his opening remarks at the Israel Private Markets Summit
“Israeli GDP per capita has grown by four times over the last 30 years. Global tech investment in Israel is a quarter of the total figure in Europe, and the VC investment in Israel is the highest ratio in any of these countries,” said Leader Private Capital CEO Itay Elnatan, speaking at the Israel Private Markets Summit in Tel Aviv. Joined by professionals from both Israel and overseas, the Summit focused on LP/GP relations, networking, and sharing outlooks for long-term markets given the uncertainty in the current era.
Leader Private Capital is a premier advisory and private markets investment management firm providing customized solutions to Israeli institutional and sophisticated investors through primary funds and direct investments. Founded in 1991, it has grown over the years to be the largest investment banking and financial advisory firm in Israel.
“About one-third of Israeli institution investors have large technology exposure,” he continued. “2022, followed by 2021, were record years for commitments made to venture capital funds and growth funds that focus on technology companies.” Elnatan was speaking following welcoming the crowd in a talk titled “The Evolution of the Israeli LP Market – Portfolio Updates, Trends & Forecasts". He spoke about the industry as a whole during a turbulent year, provided updates on portfolios and trends, and also shared forecasts for the future. According to Leader Private Capital, short-term uncertainty can still lead to long-term growth if challenges are tackled carefully.
“Our feeling, based on talking to Israeli investors, is that they are in a phase where they are ready to reduce the amount of fund managers they have exposure to in their portfolio while at the same time deepen the relationship with those they will choose to stay with. Meaning, more capital for a smaller number of managers,” he added. Between 2019 and 2022, the average number of different GP relationships per LP jumped from 58 to 82, suggesting that Israelis are looking outward to other countries to form relationships. “We still see an improvement because there is always room for more relationships.”
Since its inception, Leader Private Capital has managed debt and capital raisings in excess of $100 billion. It has been chosen to lead a significant portion of the initial public offerings (IPOs) in the local market, the large global IPOs of Israeli companies abroad, and private capital raisings of the most significant companies in the industry. Its clients include the largest institutional investors in Israel, the largest companies in the economy, banks, government bodies, pension funds and insurance companies, and private fund managers in Israel and around the world.
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The Summit is taking place during turbulent times both on local Israeli ground and also overall in the world, as markets need to navigate a world coming out of a pandemic, an ongoing war in Europe, rising costs of living, and judicial reform protests that are crippling Israeli life. Despite this, there are hopes that markets will be able to navigate challenging times that will see long-term benefits in the years to come.
“The institutional investor AUM continues to grow significantly over the last decade. There was a little bit of a decrease in 2022, but we are expecting the pace to grow significantly in the years to come, and by the end of this decade, Israeli institutional investors’ total AUM should reach $1.4 trillion,” he concluded.
The Israel Private Markets Summit took place in Tel Aviv and addressed industry topics such as private equity, private debt, real estate, and infrastructure. It included remarks and panels from experts like Leader Private Capital, HarbourVest Partners, CD&R, and TJC.
