Private equity deals hit a three-year low, reports the Israel Venture Association and Gross, Kleinhendler, Hodak, Halevy, Greenberg & Co. today. There were 44 private equity deals amounting to $2.2 billion in 2013, down 39% from the $3.6 billion in 55 deals in 2012, and down 23% from the $2.9 billion in 63 deals in 2011.
The largest private equity deal in 2013 was the $500 million buyout of Alliance Tire Group Ltd. by KKR & Co. (NYSE: KKR), which accounted for nearly a quarter of all deals for the year.
Private equity fund deals by Israeli firms totaled $519 million in 2013, 24% of total investments, the lowest share for Israeli funds in three years, down 43% from $1.6 billion in 2012 and down 33% from $963 million in 2011. (33 percent) in 2011. The largest deal was the $95 million acquisition of the Spokane Valley Mall in Washington by Israeli REIT Alto.
GHK partner and head of M&A Rick Mann said, "2013 ended with a slowdown in private equity investment in Israel. This appears to be the result of a confluence of factors including higher valuations offered by strategic acquirers, a greater focus by private equity firms worldwide in 2013 to realize profits on existing investments and a general sense of caution in investing. Because of the large number of companies that are expected to be on the shelf as a result of Israel's recent legislation to restrict economic concentration and holding company structures, we believe that the coming year will offer significant opportunities for private equity investment."
Published by Globes [online], Israel business news - www.globes-online.com - on February 5, 2014
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